Archive for month: May, 2017

To: City of Windom Employees

From: Chelsie Carlson

To help provide lower health care costs, the City is a member of the Southwest West Central Coop (SWWC) health insurance pool.  I recently attended a SWWC Coop Executive Committee meeting where industry trends and the status of our health insurance pool were discussed.  At this time, we do not have 2018 premium renewal numbers but based on the Coop discussions we are likely to receive another significant increase in premiums if no changes are made to our current health insurance plan.

Currently, the City has only one health insurance plan that has been in place since 2004.  One tool SWWC wants employee groups to consider is a combined HSA/VEBA offering.  Our current health plan only qualifies for a VEBA account.  There are pros and cons to using each type of Health Savings Account (HSA).  To maximize the benefits available a health insurance plan that qualifies for both a HSA account and a VEBA would be beneficial.  In 2018, HSA accounts require a health plan with a minimum deductible of $1,350 for single and $2,700 for family.  This would be a slight increase in the deductible from our current plan, but it could be off-set with additional tax saving benefits.  Attached is a brochure that explains VEBA and HSA accounts and some of the differences.  As a second option, the SWWC encouraged employers to offer more than one health insurance plan to employees.  For example, the City could offer higher deductible plans as options for employees to reduce premium costs for both employees and the City.  Cost savings in these higher deductible plans could lead to revised employee/employer contribution rates that would need to be negotiated between the union and the City.

Please note that a combined HSA/VEBA offering added to the current health insurance plan or providing other health insurance plan options would be considered a change in overall benefits covered by union contracts and must be negotiated with the unions as part of the labor agreement. 

If you would be interested in these options please contact your union steward or union representative.  We encourage your union representatives to follow up with myself or Steve to discuss further possible changes to our health insurance coverage.

For additional information on a combined HSA/VEBA offering a Select Account representative will be in Windom on June 22^nd to review and explain the information in greater detail to interested employees.  Informational meetings will be held in the Council Chamber from 12:30 PM -1:30 PM and 2:00 PM-3:00 PM.

HSA VS VEBA Comparison Information

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