City Council approves medical benefits change for employees,City will save $333,000
At the Edmonds City Council meeting Tuesday, the council unanimously approved a change in medical benefits for employees.
Currently, the City is a member of the Association of Washington Cities Benefit Trust, and purchases medical benefit insurance, among other insurance from the Trust.
Under the leadership of Mayor Earling, the City has been exploring options to provide medical benefit insurance for its employees.
After thorough research and analysis, and continued work with Mercer, a brokerage company, the City Council decided to change the Preferred Provider Option (PPO) medical benefit insurance to United Health Care ( UHC).
The UHC plan is very similar to the current plan, and provides a $333,000 savings for 2013 to the city.
In addition to the savings, the city negotiated a rate cap increase for 2014, so will continue to see savings comparatively, based on historical increases in rates at AWC.
The other benefit the City will realize from this change is access to claims data, which can help to contain costs, and qualify for competitive bids for provision of healthcare.
The City will continue to offer medical insurance through Group Health Cooperative with the AWC Trust, as UHC does not offer an HMO option for health insurance.