Freeport board approves employee benefits trust renewal, keeps mandatory wellness incentive

The Freeport Employees Benefits Trust voted Aug. 18 to approve the plan renewal that keeps in place a requirement — first adopted last year — that employees either show proof of an annual preventive wellness exam or pay an additional $25 per pay period toward insurance premiums.

Human Resources presenter Edith Fisher summarized participation: “Out of approximately 125 employees, we have only had 21 that did not submit proof” of the annual exam, and she described the wellness exam as “covered at 100%.” Fisher also said dental premiums rose about 3% but were otherwise unchanged.

Council and trustees discussed the rationale and the effect of the surcharge. Trustee Matamoros moved to approve agenda item 3a as presented; the motion was seconded by Trustee Davis and carried unanimously after brief discussion and questions about whether the fee amount should be revisited next year. Several trustees said the requirement had prompted employees to get care they might otherwise have foregone. “I had one employee come to me and tell me that he would not have gone to the doctor if it wasn't for that,” Fisher said; she added the exam had led to an early treatment discovery.

Trustees and staff also reviewed the plan’s loss ratio and large claims. The city’s claims-to-premiums ratio stands at about 91%, Fisher reported, a level she described as “bad” compared with an insurer’s typical target of 85% or below. Trustees discussed the size and frequency of large claims and whether tougher incentives should be considered; one trustee said he intended to propose raising the surcharge in council to encourage higher compliance.

The trust’s formal approval will be forwarded to the City Council as a consent-level action addressed later in the agenda.