At a time when liberal Democrats running for president are calling for universal health insurance and are often demonized for doing so its surprising how closely Iola city leaders hew to the mark with their generous health packages for city employees.
Currently, the city pays 100% of an employees insurance premium, or an average of $475 a month, and a flat rate of $775 for families, of which the employee contributes $250 a month.
Few in private industry can afford to be so generous.
In Kansas, employers typically pay 72 percent of an insurance premium, and employees the other 28%, according to the Kaiser Family Foundation. For those that provide coverage for family members, they typically do so at a decidedly lesser ratio.
The city of Iola also varies from private industry in that it charges employees a flat fee for family coverage, instead of a percentage of what the actual cost is. So when next years policy increases 18%, its Iola taxpayers who will pick up the additional cost. That steep increase is an anomaly that should raise serious questions. According to Kansass three main health insurance providers Medica, Blue Cross Blue Shield, and Sunflower/Ambetter rate increases will be held to single digits for 2020.
The average family policy in Kansas is $18,825 a year, with employees contributing an average of $5,248, or $437 a month, according to Kaiser.
Today, only 57% of firms provide health insurance for employees, down from 63% from 10 years ago. Break it down, and the smaller the business, the less likely it is to provide coverage of any kind. As we all know, health care has become prohibitively expensive. Large industries, those with 200 or more workers, do a better job of providing health insurance for at least some workers.
TONIGHT, city council members will review a proposed budget for next year that is $1.8 million over budget. Of that, $848,000 goes for health insurance.
A frequent criticism of government is that it doesnt operate like private industry. This may be one instance where that critique rings true.
Given the state of our citys finances, it would be prudent for city leaders to set the same standards that private businesses ask of their employees, such as the 75/25 ratio.
Thats what fiscal management demands.
Susan Lynn
