City employees will pay more for health insurance

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Gaylord city employees will be paying more out-of-pocket for health insurance next year.

Gaylord’s City Council, last week, approved changing from a $300 deductible and a $15 co-pay plan to a $500 deductible and a $15 co-pay plan. This change will take effect November 1.

City Administrator Kevin McCann recommended increasing the deductible in order for the city to be within the 10% premium increase that was budgeted.

If the city had stayed with the same plan, there would have been a 12.6% increase over the previous year. By increasing the deductible, the premium will increase 8.2% from last year.

The health insurance premium for employees 30-34 will increase from $380.13/month to $411.54/month.

The City of Gaylord provides 100% single coverage for employees. There are seven employees on the plan.

Todd Zimmerman of Princor Financial, an insurance broker, also suggested that the city address its health insurance coverage for employees 65 and over. For employees over the age of 65, it would be less expensive for the city to provide them extra salary and to have them covered with a Medicare supplement and prescription coverage, than to have them covered by the city’s health insurance plan. The council directed Zimmerman to meet with McCann to discuss this issue.

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