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Shrewsbury to consider employee health-insurance opt-out incentive; ordinance due April 14
Summary
City staff proposed a Health Insurance Opt-Out Policy to reduce insurance costs by incentivizing employees with alternative coverage to decline city-provided health insurance, estimating roughly $4,000 savings per employee; an implementing ordinance is scheduled for the April 14 meeting.
City Administrator Dustin Ziebold introduced a proposed Health Insurance Opt-Out Policy at the March 24 work session and said he would bring an ordinance to the April 14 regular meeting for board consideration.
Under the proposal, employees who have access to alternative coverage (for example, through a spouse) and who choose to decline the city's health-insurance plan would receive a financial incentive. The minutes state the city estimates savings of roughly $4,000 per employee who opts out. The policy would require employees to maintain alternate coverage to remain eligible for the opt-out incentive.
Administration framed the policy as a cost-saving measure intended to address rising insurance expenses by reducing redundant coverage and lowering the city's overall health-insurance expenditures. Ziebold told the board the implementing ordinance would be brought to the April 14 board meeting for formal consideration.
The board did not take formal action on the policy at the March 24 meeting; members can expect a draft ordinance and additional details at the April 14 regular session.
