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full. Human Resources Manager Lasher advised a handful of employees take the $1,500 <br />deductable but for employees not claiming single (employee plus spouse/children/family) the <br />$2,500 plan is popular. <br />Councilmember Backous stated it is supported by the employee because each gets a contribution <br />of almost $2,000 into their Health Reimbursement Account (HRA). <br />Human Resources Manager Lasher explained the amount of HRA contribution is a City decision <br />and had been based on the deductibles and indexed each year. Ramsey has been with an HRA <br />for six years. <br />Councilmember Backous asked whether employees understand an HRA is the City's money, not <br />like a Health Savings Account (HSA) where the funds go with the employee. <br />Human Resources Manager Lasher clarified the money going into the HRA is the employee's <br />money, even though not an HSA. <br />Councilmember Backous explained HRAs are more of an accounting entry and the funds stay <br />with the employer so that aspect needs to be discussed. <br />Chairperson Tossey noted an HSA is a savings account so it is employee funded. An HRA <br />involves reimbursement of the employee's expenses, once submitted. <br />Councilmember Backous stated he is 100% against offering the ability to opt out because they <br />are voluntary benefits. If the employee does not take the benefit, he would oppose paying them. <br />Councilmember Kuzma asked whether there is a savings to the City when employees opt out. <br />Human Resources Manager Lasher explained it would be an estimate because the City does not <br />know what an employee will decide to do, but she believed it would be a savings to the City of <br />$2,200. <br />Chairperson Tossey stated he had been approached by a retired police officer about this matter <br />and asked if there is a penalty if each spouse has insurance. <br />Councilmember Backous explained that type of restriction probably involved a coordination of <br />benefits clause written into the insurance plan. <br />Councilmember Kuzma stated it is a benefit if you are an employee and if the employee does not <br />want the benefit, he would not oppose them receiving a cash check if it results in a savings to the <br />City. <br />Human Resources Manager Lasher advised the City has these rates as long as it stays with <br />LOGIS because it will remain in the large group. It would only be a consideration if the City <br />decides to leave LOGIS and less than 50 people are covered. <br />Personnel Committee / January 22, 2013 <br />Page 4 of 11 <br />