09 - Increase in City's monthyly health insurance contribution

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The City of Paris contributes $565/month to each full time employee under the City's health plan. Therefore, each of the employees in the above categories receives the same monthly contribution from the City. All additional expenses beyond this monthly amount for premium, if any, is paid for by the employee. Historically, the City has attempted to provide a monthly contribution that allows for two (2) plans' Employee -Only monthly premium to be paid for 100% by the City's contribution. In our situation, Plan C and Plan D Employee -Only monthly premium has been less than the City's monthly contribution (as can be seen, it represents the highest census count for our employees (191 of 272 employees, 70%). We have had to increase the City's monthly contribution from time to time in order to maintain that as an option. STATUS OF ISSUE: The TML Health has submitted to us the attached letter (Exhibit A) indicating that our rates will increase by 16% in 2023. While they have worked hard to keep our rates low each of the last two CoVid-19 years in order to give cities and employees a break and the means of covering other emergencies, they are unable to continue to operate without raising rates. Their reasons for the increases are listed in the letter, but in short they state that CoVid-19 has had an impact. Even though the rates are going up 16%, the City of Paris itself does not see this cost unless it so chooses to do so as was discussed in the Background section above. It is actually the employee that bears the cost of rate increases unless the City raises its monthly contribution. The City would routinely increase its contribution every year, however this has not occurred each of the last three fiscal years. We have focused our attention on employee pay and retirement each of the last three years, and given the rate increases have been minimal during that time, the City's contribution was still enough to cover Employee Only for Plans C and D. However, we did not foresee a 16% rate increase for 2023. The following table shows the increases we have seen each of the last few years. Those with ranges indicate that some Plans experienced different rate increases than others — all determined by TML. Year Ratemmlncrease 2023 1 16% 2022 4% 2021 4% 2020 4.27% - 5.88% 2019 _ 5.8% -11.24% 2018 4% With this, not only will employees be seeing significant rate increases impacting their take -home - pay, we have now reached a point that Plan C's Employee -Only option is no longer 100% funded by the City's contribution. As can be seen on the first page, a vast majority of employees rely upon the City's contribution in order to have an Employee Only Plan under Plans C and D. Our goal