Kennett City Council explores cost-effective health insurance options for city employees

Kennett's City Council met Tuesday and heard from Ward I Councilor Lisa Dry regarding health insurance coverage for city employees.

Dry chairs the Health Coverage Review Committee, whose members are Tina Butler, Tyler Roberts, Carolyn Brooks Ellis, and Kenny Wilson.

The committee met on Feb. 7 and welcomed guest Kennett Board of Public Works (KBPW) Chief Financial Officer (CFO) Crystal Dennis.

Dry reported that although the city has no Human Resources department, the committee's responsibility was to exercise due diligence concerning "the most cost-effective options that deliver the same or better value" as the city's present plan.

Ms. Dennis informed the committee that Sonus broker services are beneficial, as a KBPW employee survey indicates, and that Sonus Benefits Consultant Kurt Humphrey is available at KBPW to review claims and "evaluate possibilities of decreasing high-dollar claims," discount, and pharmacy plans.

Dennis said KBPW provides healthcare coverage and that more employees subscribe to family plans for that reason.

Regarding the council's committee's 20-question survey sent to 55 city employees, 31 full-time and one part-time employee participated, a 58 percent response.

Of the respondents, 25 employees subscribed to the city's healthcare insurance and seven did not.

The committee's survey revealed that 62 percent of respondents were satisfied with the city's present plan, and 38 percent were not.

This includes employees who are neither satisfied nor dissatisfied, and once this is included in the equation, 22 percent of employees are satisfied, according to the report.

That same 22 percent noted that premium affordability was excellent or good; 34 percent said fair; and 41 percent rated the premium costs "poor."

Deductible and co-pay, out-of-pocket costs were deemed good or fair while 48 percent of respondents indicated poor.

Nearly 70 percent rated the "provider network available as fair to excellent," 37 percent fair, although 27 percent said poor.

City employees would appreciate additional hospitals included in the plan, according to the survey.

"Most employees are seeking relief for lower premiums," the survey response indicates, including decreased out-of-pocket expenses and the desire for a laundry list of additional benefits or programs, including but not limited to less expensive family plans, coverage for weight-loss management, decreased rates for employees, "paid health care like surrounding cities," provide, "obtain an insurance company that does not reject everything," and to seek alternative providers rather than doing business with companies that offer better rates, then increase premiums months into programs.

Regarding Flexible Spending Accounts, pre-tax dollars used for co-pays and other costs not covered by insurance, a self-funded option, 60 percent of respondents indicated they were not interested.

Employees complain that family plans are so expensive that they consume an entire paycheck, and they would appreciate increased mental health coverage, according to the report.

"We met with our current broker," Dry told the council. "Sonus gave us a good understanding of what our plan is and how many employees use it.

"We also met with Anthem-Blue Cross to learn more about the current insurance coverage for our employees, what kinds of claims they're making, what kinds of prescriptions are covered, all those things that affect our rates," Dry continued. "We'll have some recommendations for the council at the next meeting or the following meeting on our path forward."

Dry thanked her committee members for their work, and Kennett Mayor Jake Crafton commended Dry for her leadership regarding the survey and report.

In other business the council:

Heard from Finance Committee Chair Steve Panousis, who reported a downturn in all accounts, $107,252.34. Panousis said the committee will monitor the situation closely and slated a meeting for the first week of April, the end of the third fiscal quarter, to facilitate planning for the next budget year.

Approved the abstract of accounts and the statement of revenues and expenditures received on Feb. 4.

Adopted a stop sign ordinance that places signs at W. Eighth and S. Vandeventer that stops traffic on S. Vandeventer, W. Eighth and S. Everett that stops traffic on S. Everett, W. Eighth and Oak that stops traffic on Oak, S. Everett and Beaton that stops traffic on Beaton, S. Everett and Lee to stop traffic on Lee, Oak and Beaton to stop traffic on Beaton and the intersection of Franklin Blvd. and Beaton to stop traffic on Beaton Street.

Approved spending $1,050 for HVAC service and filter changes at City Hall. The one-year contract went to the sole bidder, SEMO Heat and Air.

Approved spending $22,303 for energy-efficient vinyl windows and the front door of the Dunklin County Museum, five windows on the bottom of the building's north side and all on the building's front. Ace Glass at Blytheville was the sole bidder and won the contract.

Approved letting bids for the purchase of three mini-split heating and air units for the museum, which is included on the National Registry of Historic Places.

Approved continuing to provide Air Evac and Survival Flight membership services for city employees.

Approved a $10,000 expenditure as part of a 50/50 matching grant submitted by the Kennett Chamber of Commerce for changing the city's logo. Two council members voted nay. The money emanates from the Tourism Tax Fund line item.

Approved the Kennett Board of Public Works seeking a loan for $4,329,703 from First State Bank and Trust Co. of Caruthersville. The five-year, 4.25% loan finances the utility's sanitation department, with work to be completed by September.

Heard from Police Committee Chair Dennis Pelts, who told the council the city's vacuum truck needs repair. There are "ample funds" in the budget to facilitate repairs, Pelts said.

Met University of Missouri Staff and Extension Council Member Ali Shearer.

The council adjourned into executive session to discuss legal actions or litigation.

The Kennett City Council meets at 6:30 p.m. on the first and third Tuesdays of every month at Kennett City Hall, 200 Cedar St., Kennett.

The public is encouraged to attend.