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Councilmember Backous pointed out that if the spouse's employer's coverage changes <br />significantly, a status change is allowed. He asked if the City has noticed any problem by not <br />offering a cash payment in lieu of benefits. <br />Human Resources Manager Lasher advised that employees have wanted this option for a long <br />time and in some cases, depending on their spouse's plan, there is either first dollar coverage or <br />there is not. With the police officer who wanted this benefit, it was because if the officer stayed <br />on the City's plan, he was forced to meet the $4,000 deductable before his spouse's plan would <br />pick up anything. <br />Councilmember Backus stated the City cannot control the benefit their spouse receives. <br />Chairperson Tossey indicated the City has 12 employees already grandfathered in that get $290 <br />and asked how many more employees there will be. <br />Human Resources Manager Lasher advised that one more is currently waiving but does not get <br />the benefit. In administration, she knows of three more. <br />Councilmember Backous noted the opt out results in the City paying the spouse's premiums and <br />puts that risk on someone else. In addition, it takes the employee out of the City's pool, possibly <br />hurting the City's status and rates. <br />Councilmember Kuzma stated he favors offering the opt out with the caveat that the employees <br />agree to come back if the City faces financial detriments as a result of offering credit in lieu of <br />coverage. <br />Human Resources Manager Lasher noted the City is locked in through the end of 2016. <br />Chairperson Tossey stated the City could try this alternative and if there is an impact, change it. <br />Councilmember Backous cautioned the Committee that from a benefits standpoint, it is easy to <br />give things but difficult to take them away. <br />Chairperson Tossey stated he would support allowing the opt out with the added language <br />suggested by Councilmember Kuzma. <br />Motion by Councilmember Kuzma, seconded by Chairperson Tossey, to recommend that the <br />City Council adopt the Resolution to offer the option to waive health insurance in exchange for a <br />cash benefit conditioned on the employee agreeing to come back if the City faces financial <br />detriments as a result of offering credit in lieu of coverage. <br />Further discussion: Human Resources Manager Lasher advised that a few employees take the <br />benefit only for VEBA since it is $130/month. <br />Personnel Committee / January 22, 2013 <br />Page 6 of 11 <br />