The Independence City Council tonight approved an agreement created by the Special Health Insurance Review Committee (SHIRC) which will save the City an estimated $3.5 million in retiree health insurance costs each year.
“We understand how very important this topic is to our retirees and are proud of the collaboration that made this decision possible,” Mayor Eileen Weir said. “With these changes, our retirees will see no changes in their current healthcare benefits.”
SHIRC unanimously approved the recommendation at the regularly scheduled August 28 meeting. Chapter 1 Lagers Retirees convened a meeting on August 29 and unanimously approved the recommendation of SHIRC.
“As a representative for the retirees, I am very proud of the conversations this effort brought forward,” retiree Bob Sorenson said. “This was not a simple decision and required a great deal of thought and deliberation. The result is a win-win solution for all involved.”
With the proposed changes retirees will remain with Cigna and access one of the customized Medicare Surround Plan options offered by the carrier.
The recommendation maintains an 80/20 cost share between the City and plan members for the premiums of the Custom, Vision, and Pharmacy Plans. The City's contribution of $217.78 to the Custom Plan can be applied to any of the three plans; future City cost share will be adjusted based on the cost of the Custom Plan. It was also recommended that a committee of plan members be established to regularly meet and evaluate Post-65 coverage. Finally, there will be a quarterly review of retiree health insurance plan to make any necessary adjustments.