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City Council Workshop <br />July 15, 2002 <br />Page 3 of 3 <br />• <br />STAFF INITIAL RECOMMENDATION <br />• <br />• Remain partially self-funded, but continue to monitor the impact of health care costs. <br />• Effective October 1, 2002, increase employee's portion of dependent coverage premiums <br />as listed below: <br />Current Proposed Type Coverage <br />$ 0.00 $0.00 Employee only <br />$49.83 $99.66 Employee plus spouse <br />$43.33 $86.66 Employee plus children <br />$56.33 $112.66 Employee plus family <br />COMMENTS <br />Responses to a recent survey by the Texas Department of Insurance indicate that traditional <br />insurance costs have not been competitive when compared to self-insured costs. <br />During the current fiscal year, several surrounding cities opted for traditional insurance plans. <br />However, some cities (with a large enough employee base) are returning or are considering <br />returning to the self-funded approach, due to the desire for lower premiums and more control <br />over the plan. <br />Those organizations that self-insure do so for financial reasons, as well as, for the ability to <br />design a plan that is more beneficial to employees with lower deductibles and higher benefits <br />than what traditional insurance can provide. <br />Additional backup for this Council packet will be distributed on Friday, July 12, 2002, by <br />4:00 pm. <br />