Village addresses cost of healthcare

By on October 11, 2013

ELBURN—The Elburn Village Board on Monday addressed the $7,400 of additional costs to next year’s budgeted health insurance premium by reducing the village’s contribution to each employee’s health care savings account (HSA).

The premium to keep the same health insurance plan for the 18 full-time village staff will go up 16 percent as of Nov. 1, as opposed to the 5 percent increase that had been budgeted. Rather than change the plan or require the employees to contribute to the cost of the premium, the Village Board agreed to reduce the amount it contributes to the HSAs from $1,500 to $1,100 per employee per year.

The village currently pays 100 percent of the premium for individual coverage and 50 percent of family coverage. The plan has a high deductible—$2,500 for employees and $5,000 for families—so the village contributes an additional amount to each employee’s HSA. Money from the HSA can be used by the employee for out-of-pocket medical expenses, including deductibles and co-pays.

Calling the decision “fair and equitable,” Village President Dave Anderson said that it won’t “affect anyone’s check or coverage.”

Although trustee Ken Anderson approved the change, he said that at some point, the village should begin asking its employees to contribute to the cost of their premiums.

“I don’t know too many employers who pay the entire premium,” Anderson said. “That’s the real world now.”

The plan coverage goes from Nov. 1, 2013, to Oct. 30, 2014.

The Village Board also increased the amount in the budget for the police pension from $100,000 to $224,970 for the 2013-14 fiscal year. When the budget was first created, village staff did not have the information needed for a good estimate of the actual cost, so they set the amount at $100,000 as a place-holder. The $224,970 will get the village caught up with its contributions.