The meeting was called to order at 3:00 pm. In attendance were Supervisors Brandt, Peterson, and Wortham, the Clerk, and insurance agent Harlan V. Johnson.
A discussion of the group health options took place considering cost, benefit limits & network, and tax benefits. The renewal proposed by the current carrier is less expensive and has better benefit levels, but has a very limited network.
A high-deductible HSA plan from Health Partners was reviewed and discussed. This plan offers a significant cost savings to employees and the township, offers comparable out of pocket limits, and has a much broader network. Premiums under this plan represent savings of about $20,000 annually over the current plan. The company was rated higher than the current carrier in a recent Consumer Reports.
The higher deductible amount could be offset by contributions to the employee’s health savings accounts by the township funded by the premium savings. Employees could further benefit by making their own contributions to the HSA with earnings deductions that would be non-taxable income (up to $6550/year). Funds from the HSA could be used for related expenses not currently covered and could accumulate year to year if not used. Plans such as these provide incentive for healthful choices and for being smart consumers of health care.
The clerk had discussed this option with employees, did research on the company, and concluded that it was a good choice for the employees and their dependents.
Motion by Peterson, second by Wortham to approve the Health Partners 3000-100 Embedded policy as presented with contribution of $4000 to the HSA accounts paid in 2 installments of $2000 – one immediately and another in 6 months. The Board will review results before next renewal to determine future HSA contributions. Carried unanimous.
The clerk will consult with the auditor to make sure how to implement the policy and meet any filing requirements under Section 125.
There being no further business to conduct, the meeting adjourned at 4:30 pm.
John Plein
Ideal Township Clerk
October 28th, 2014