Alabaster covering employee insurance rate hike

Published 3:56 pm Friday, September 28, 2018

By NEAL WAGNER / Managing Editor

ALABASTER – City of Alabaster employees likely won’t notice much of an increase in their health insurance premiums despite a statewide increase for the upcoming fiscal year, as the City Council voted recently to cover a higher portion of employees’ premiums.

City Council members voted during their Sept. 24 meeting to increase by 5 percent the amount of health insurance cost the city covers for each of its employees enrolled in the city’s group health insurance plan.

As a result, the city will now cover 75 percent of each employee’s health insurance cost, up from the previous 70 percent. The city’s additional coverage will offset the 5 percent health insurance premium enacted for municipal employees statewide, and will go into effect the first pay period in October.

During the same meeting, the council also voted to increase the amount it pays toward non-Medicare family coverage health insurance premiums for city retirees on the Local Government Health Insurance Plan. Council member Greg Farrell, a former Alabaster Fire Department employee, abstained from the vote.

As a result of the increase, the city will now pay a flat rate of $1,198 per month for family coverage and $700 per month for single coverage for all city retirees on the health insurance plan.

Any city retiree who is covered by Medicare can continue to be on the city’s group plan coverage, and the city will cover $212.50 per month for those retirees. Retirees who have had their benefits suspended by the Retirement Systems of Alabama due to post-retirement employment are not eligible to have the city pay any portion of their health insurance premium, according to the resolution approved by the council.