During a recent government meeting, discussions centered on the city's budget allocations and employee benefits, highlighting significant changes and requests from various departments.
The Human Resources (HR) department presented three key requests, two of which were short-term. One request involved acquiring training software from a local company, Niche Academy, aimed at tracking employee training modules for compliance purposes. The second request sought a benefits consultant to assist with long-term planning, particularly in light of a 15% increase in medical insurance renewal costs. This increase is notably higher than the 3-5% average seen over the past five years. The city ultimately decided to remain with PHP for its medical insurance but will implement changes to deductibles and out-of-pocket maximums to reduce the renewal increase to approximately 8%.
The HR representative explained that a benefits committee, comprising members from finance, HR, and administration, evaluates options for benefits adjustments. They rely on their benefits broker, GBS Benefits, to gather bids from various carriers, which helps inform their decisions on which plans to pursue.
A discussion also emerged regarding the potential for a multi-city benefits system, which could pool resources across municipalities. While the city has participated in a local government risk pool for 15 years, the feasibility of combining benefits with a school district remains uncertain due to differing employee profiles.
The meeting underscored the city's commitment to maintaining a competitive benefits package for employees, emphasizing that they strive to keep premiums low while offering rich benefits. The HR representative noted that the city does not require employees to contribute to premiums, a contrast to many other municipalities.
Concerns were raised about the rising costs of medical procedures and the challenges employees face in understanding these increases. The HR team encouraged employees to shop around for services and be proactive consumers of their healthcare.
Overall, the meeting highlighted the city's ongoing efforts to manage employee benefits effectively while addressing budgetary constraints and rising healthcare costs.