Green River council opens discussion on cash-in-lieu health benefit policy; staff to return draft next month

GREEN RIVER, Utah — The Green River City Council discussed whether to adopt a cash-in-lieu policy for employees who have adequate alternative health insurance, with no formal motion taken and a written policy requested for the next meeting.

Council leaders said the idea arose during recent budget hearings and that other jurisdictions vary widely in what they pay employees who decline city health coverage. Examples cited during the discussion included ranges from no payment up to full parity with the employer benefit; several council members said they were comfortable considering a 50–75% cash-in-lieu amount as a starting point.

Mayor (name not specified) said the city manager and staff will research comparable cities and run any draft past the city’s insurance trust representative to ensure the city does not promise benefits it cannot legally or contractually deliver. Council members and staff noted tax implications for employees who accept cash in lieu and emphasized the need for clear written policy language on eligibility, amount, and tax treatment.

No vote was held. The mayor said a concrete policy draft will return at the next regular meeting for council consideration and possible vote.

The discussion included descriptions of typical policy designs (percentage of the employer-paid benefit, flat-dollar alternatives in private-sector examples) and a caution that advisory or trust agreements may limit the city’s options.

Councilmembers asked staff to survey similar-sized Utah cities, consult the city’s benefits trust representative and prepare a proposed ordinance or policy document for formal action next month.

Ending: The council did not adopt policy language during the May 13 meeting; staff were directed to draft a written policy and present it at the next council meeting for a vote.