City Council Increases Health Insurance Premiums and Debates Trash Collection

SAN ANGELO, TX – This morning, San Angelo City Council members met again to discuss issues related to health insurance premiums and waste collection.

Lisa Marley, Director of Human Resources and Risk Management, presented the 2017 health insurance coverage provided by COSA health insurance and was seeking approval from the council to accept suggested changes that would be effective starting January 1, 2017. Marley requested that the council use the unallocated $322,946.00 from the General Fund budget as well as $74,000.00 from the Non-General Fund departments to fund the impending increase in health insurance premiums. The Department of Human Resources asked for these monetary funds because COSA health insurance witnessed a 2.9 percent increase in health claims, a 16.9 percent increase in prescription claims, as well as 5 large stoploss claimants totaling $905,000. The insurance is therefore implementing changes to premiums and coverage. To prevent that, city employees are seeing a significant increase in monthly premiums; some changes will need to be made to the health insurance plan.

San Angelo Police officers, through Meet & Confer, agreed to forego raises so funds from the City's General Fund could offset insurance premium increases (see that story here).

The 2017 COSA health insurance plan for city employees and retirees will require participants to use generic drug prescriptions and add step therapy and pre-certification to certain medications (e.g., if no generic drug is available, the brand needs to be pre-certified). These changes will most likely affect 123 insured out of a total 1,080 people who participate in the city’s health insurance plan. These health insurance plan changes will save the city $105,000.

The city council approved Marley’s request to allocate the requested $396,946 toward the health insurance of city employees and retirees, and members also approved the suggested changes to the health insurance coverage, thereby assuring that insurance premiums would only increase 5 percent for employees and retirees. The city will also see a $33.37 contribution increase per employee each month.

Note: Below is a table listing the cost of insurance increases to employees/pre-65 retirees, as well as post-65 retirees. 

If the council had voted against the proposed changes and use of funds, city employees and retirees would have seen a 33.5 percent increase in health insurance premiums. Marley also relayed to the council members, as well as to those in attendance, that the members of the Insurance Review Committee “express their gratitude and sincere appreciation to the Police Department for foregoing their pay raises and recommending the money be used for the purpose of the insurance.” There will be no increase to dental or vision healthcare insurance.

Shane Kelton, COSA's Operations Director, also attended the city council meeting this morning to discuss the city’s concern over current trash collection procedures.

In LIVE!’s article on the November 2 city council meeting, we highlighted the outcome of the waste collection survey sent to San Angelo residents with the August water bill and two public forums held on the issue of waste collection. Today, Kelton, presented the findings again, but broke them down into three broader categories: trash collection, recycling, and bulk pick up. He then asked the council for guidance on how he and Republic Services Ltd. could best fix this issue. After much debate, the council came to a consensus, demanding that the contract should be amended to include a set monthly bulk trash pick up. Kelton explained that if this amendment is added to the contract, customers would most likely see a small increase in trash collection charges.

Council members vehemently opposed a price increase.

Harry Thomas said, “I am not interested in making a change in this contract if it is going to impact the citizens in an adverse way or the city. If there is an increase of cost, I do not want to change it.”  

Other council members agreed. After a long debate, other issues were discussed such as the placement of trash cans and the possibility of citizens choosing their preferred trash can size.

City Manager Daniel Valenzuela summarized, “We are hearing the message loud and clear that there should not be an increase in cost.”  He added that, in the future, “we will look into different variations” of bulk pick up options such as call-ins. Kelton will return to a future city council meeting, where he will present other options on how to resolve the current issues with San Angelo’s trash pick up.

The next city council meeting is scheduled for December 6 at 8:30 a.m. at the McNease convention center. As always, the meeting is open to the public.