By Terrance Thornton
Twitter: @ININEWSMAN

Scottsdale employees can rest assured current provisions and benefits will remain in place thanks to a recent approval of citywide medical plans and premiums with the municipality --- and its staff --- shouldering a 6% increase in cost.

Embodied in Scottsdale City Council-approved Resolution No. 11669 the new agreement guarantees the fiscal year 2020-21 medical and dental plan contribution rates for all Scottsdale employees participating in the health insurance program.

The approval came March 3 at City Hall, 3939 N. Drinkwater Blvd.

As of January 2020, there are 2,094 active employees and 24 participants in the Public Safety Personnel Retirement System enrolled in the four medical plans provided by the city, according to Lauran Beebe, Scottsdale human resources manager.

In all, Ms. Beebe reports, 68% or 1,434 of active employees are enrolled in the Open Access Plus In-Network plan meanwhile 5%, or 116 employees, are enrolled in the LocalPlus Network Plan followed by the PPO plan, at 286 employees, and 282 employees are enrolled in the Health Savings Account plan.

“There are approximately 5,300 total members (employees and family members) across all four plans,” Ms. Bebee wrote in her March report to City Council.

“Based on reviewing claims activity over the past 30 months, if no plan or contribution changes occur, the city will need to adjust medical plan funding by 6 percent or $1.9 million --- approximately $1.5 million for the city and $400,000 for employees.”

Ms. Beebe outlines to City Council up-ticks to health care administrative costs are hitting City Hall, but the Total Benefits Advisory Committee --- a 30- to 40-member employee group --- recommends approval of plans provided.

“The committee recognizes that co-pays and deductibles have not increased for the last six years,” she told City Council.

“Both the TBAC and the [Benefits Coordinating Committee] are recommending the option we are presenting... The option will increase the out-of-pocket maximums to the OAP In-Network/Local Plus Network Plan tiers from $2,500 individual/$5,000 family to $3,000 individual/$6,000 family. With more employees facing mental health challenges all over the nation, we are also proposing reducing the mental health co-pay from $20 to $10.”

City officials say the recent City Council approval marks the first time since 2014, out-of-pocket costs to employees have increased.

Ms. Beebe outlines with rising medical premiums and needs for mental health services increasing on a national level, the presented plans are most equitable for the municipality.

“The recommended option tonight will save $71,000,” she said. “The total expected cost of the medical and dental plans is approximately $35.8 million --- $34.2 million medical and $1.6 million dental.”

By the numbers, the city is paying $27.5 million in medical premium costs meanwhile $8.3 million will be shouldered by employees.