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information. We cannot change claim history or future claims; therefore, no matter <br />which company we use, the rates will be based on our claims. Changing from one <br />company to another will not substantially decrease rates because all companies use the <br />same information to determine rates. The only way to reduce costs is to reduce coverage. <br />Increasing the contribution could reduce employee costs, but that just passes the cost on <br />to the City - the insurance company still collects the same premium. <br /> <br />In addition, the Committee discussed the issue of fairness. What is fair? Do benefits <br />have to be fair? What one person thinks is fair may not seem fair at all to the other. Is it <br />fair that some employees receive more financially from the City because the City is <br />paying for part of their family insurance coverage? Or is this fair because in the end all <br />employees have insurance coverage? If two employees are each paid $10.00 per hour <br />and one takes family coverage, the actual cost to the City is much higher per hour for that <br />employee than an employee taking employee only coverage - is this fair? These are some <br />of the issues the Committee discussed because fairness is an important part of how <br />benefits are provided. In the end, not all members agreed on what is fair and what isn't. <br /> <br />The Committee reviewed national surveys and published articles to help determine what <br />most employees what in a benefits package. This information correlated closely to what <br />the members felt was important. Employees want several things from their benefit <br />package. <br /> · Flexibility <br /> · Choice <br /> · A feeling of control or ownership <br /> <br />Finally, keeping all of these issues in mind, the Committee tried to focus on changes that <br />would help all employees but not cause undue hardship on the City. The Committee also <br />had to work around the health insurance premium issue since that is out of our control. <br /> <br />Options <br /> <br />The Committee identified several options for the Council to consider. Of course, some of <br />these options do not address the issues that the Council wants to resolve. The options <br />proposed are as follows: <br /> <br />· Do nothing <br />· Increase City contribution to family coverage <br />· Unilaterally decrease health insurance benefits <br />· Change the way benefits are provided <br /> o Increase flexibility in current structure <br /> o Cafeteria Plan <br /> <br />Do Nothing: Obviously, this option does not address the concerns and goals stated <br />previously. <br /> <br /> <br />