City employees may pay more for health insurance next year
Colorado Springs city employees would shoulder more of the burden for their health insurance next year under a proposal that would save taxpayers $2 million.
The city’s Human Resources Department recommended increasing employees’ share of health premiums from 8 percent to 20 percent.
The government, which currently pays 92 percent, would pick up 80 percent of the costs, which is more in line with the private sector.
The proposed change in premium cost sharing for health insurance for city employees has long been advocated among some city officials and some community leaders.
“City Council must significantly adjust how we share the cost of healthcare with our employees,” Mayor Lionel Rivera said during his annual State of the City address June 30.
Memorial Health System “has been adjusting their employee healthcare costs to be more in line with practices in the private sector. We must move in that direction for both the city and (Colorado Springs Utilities),” he said. “That savings can help mitigate future reductions in services for the city and mitigate future rate increases for CSU.”
The proposal, which the City Council will discuss Monday during its informal meeting, also calls for salaries for city employees to remain the same next year.
"The majority of city employees have not received any type of salary increase since 2008," according to a report to council.
In addition, the report states, city employees were forced to forfeit 24 hours of vacation accruals for 2010.
The proposal doesn't mention pay cuts, a hot topic of debate as the city slashed services, from taking trash cans out of parks to eliminating evening and weekend bus service, to balance the budget.
“At the end of the day, it’s almost like getting a pay cut because we’re picking up far more of the benefits piece,” city spokeswoman Sue Skiffington-Blumberg said today.
“The shift in health insurance is not small,” she said.
For example, an employee who included their spouse in their insurance paid $131 a month last year. Under the new structure, the cost would be $237 a month, or $1,272 more a year.
