Wednesday, November 4, 2009
City Council Chambers
Tom Bunger.
President John Walsh called the meeting to order at 5:45 p.m.
Kyle Wickemeyer-Hardy reported that the library received a quote for employee health insurance from Anthem. The quote for Preferred Provider Organization (PPO) health insurance reflected a 41.5% increase, while the Health Savings Account coverage reflected a 39.1% increase. Five other carriers declined to bid on our coverage. Their reasons for declining to bid included claim experience, ongoing medical risks, and trends. A “maturing” work force may also have been a factor. It is anticipated that costs will continue to rise in the coming years. Kyle discussed MCPL’s health insurance cost history and showed comparisons with five other Indiana libraries. Of those compared, MCPL is the only one offering health insurance to part-time employees.
Currently, 125 employees are eligible for insurance coverage with 86 being covered (48 in the PPO and 38 in the HSA added last year). There are 17 part-time employees in the one-year waiting period range for eligibility.
Dental and vision insurance costs will remain the same as last year.
Kyle recommended offering three insurance options to staff. The first option is a slightly modified PPO (deductible increased from $250 to $500; other increases in emergency room coverage and drug co-pay amounts); the second option is an HSA with a $3,000 deductible (same as in 2009); and the third option is a new HSA with a $5,000 deductible. By making small changes to the PPO, the rate increase would be 28.1% as opposed to the 41.5% quoted. The original HSA increase would remain at 39.1% while the new HSA reflects an 11.5% increase.
Based on the 10% budgeted increase for health insurance for 2010, MCPL would increase its contribution by 10%. MCPL would contribute $5,666 for each of the three plans offered; employee contributions would be increased to cover the balance of the annual cost. For example, a full-time employee selecting the PPO would contribute $1,924 annually ($74/ pay period) as compared to $736 annually ($28.30/pay period) for 2009. Part-time contributions would be calculated based on the percentage of time worked. Individual full-time employees would pay no premiums for either of the HSAs. Because the cost of the HSA insurance would be less than $5,666, the library would also contribute $229 to the HSAs of individual full-time employees covered with the $3,000 deductible plan, for example, and a $1,310 contribution to the HSAs of individual full-time employees covered with a $5,000 deductible.
Sara Laughlin noted that the proposed contributions represent 73% paid by the library and 27% paid by employees.
The board discussed the various options.
Steve Moberly asked about the Health Insurance Task Force members’ reactions to the rate increases. Kyle responded that the committee was shocked, as was administration, but realized that the world was changing and that cost increases must be shared by all.
Sara Laughlin announced that she had received an email from State Representative Peggy Welch stating that the library’s appeal for restoring the 2009 shortfall in the amount of $861,651 has been approved. This amount replaces lost revenue in 2009 and restores the 2010 tax levy. At the time of the 2010 budget approval the $861,651 appeal funds were shown in the Capital Outlay category.
Sara Laughlin presented recommendations for allocating the 2009 appeal funds as follows:
| Health Insurance (additional 10%) | $ 40,000 |
| Main Renovation | 252,000 |
| Furniture: Phase I & II | 70,000 |
| Alt. 3: VITAL doorway | 13,000 |
| Alt. 4: Carpet 2nd floor | 127,000 |
| Phase I furniture movers | 22,000 |
| Signage | 10,000 |
| Phase II Upholstery | 10,000 |
| Set aside for Learning Center completion (if not funded by grant) | 34,000 |
| Radio Frequency Identification (RFID) tags and conversion stations | 248,434 |
| TOTAL | $574,434 |
Sara added that there are other items that could also be considered, such as funding pay increases for managers (not funded in 2010 budget) or saving some or all of the money.
In response to a question by Kari Isaacson, Sara explained the RFID system and noted that the tags are a supply item as opposed to a capital outlay.
Steve Moberly commented that while he is very happy that the appeal has been granted, he would urge caution in spending it since it is a one-time event.
John Walsh requested a prioritized list of recommendations so the board could discuss and select some items while keeping some money in reserve. He felt that the $40,000 for health insurance was a relatively small item and should be funded and requested updated figures showing how this increase would affect employee contribution requirements. Sara will provide these numbers and noted that it would decrease full-time single employee contributions by about $500/yr. per employee.
Regarding health insurance coverage, Kyle Wickemeyer-Hardy raised the question of whether MCPL was helping or hindering part-time employees by continuing to offer health insurance coverage. By offering insurance that they may not be able to afford, we are precluding part-time employees from qualifying for the state-funded Healthy Indiana Plan. Kyle also noted that some families may be able to get individual family coverage cheaper than through our group due to our claim history. Lastly, Kyle commented that it was important to remember that compensation affects all employees while health insurance costs affect only a percentage.
Sara Laughlin noted that she had distributed a resolution to update the personnel manual with regard to description of health care contributions. Steve Moberly requested that the resolution be reviewed by legal counsel.
Melissa Pogue asked whether the library would just be prolonging the inevitable by increasing its contribution to health insurance this year. Sara Laughlin commented that she does not want to drive up ongoing costs substantially but there should be sufficient funds in 2011.
Steve Moberly asked if the appeal funds would be received along with regular tax payments in 2010 (end of June and end of December) and whether the payments would depend on tax collections. Sara confirmed. Steve Moberly cautioned about overspending before funds are received.
None.
Meeting adjourned at 7:05 p.m.
Contact
Us Monroe County Public Library, Monroe County, Indiana ° (812)349-3050
Updated:
November 13, 2009
° http://www.monroe.lib.in.us/board/200911wrk.html
