MEMPHIS, Tenn. — Just one year after health care benefit cuts stirred up a lot of complaints among city employees and retirees, more changes may be on the way.
City administrators said their health care package is considered a “Cadillac plan” that must become more like a Ford Taurus.
The talk of changing health care plans again led to a standing room only committee meeting at City Hall.
The Segal Group, a human resources consulting firm, told the city offering hefty benefit packages known as “Cadillac plans” could subject it to a special tax under the Affordable Care Act and changing would save the city between $15 million and $20 million.
“Now, I believe that this latest report brings everything home and it gets us focused on moving into the right direction to redesign our plans so they are sustainable from a financial prospective,” said Quinton Robinson the Human Resources Director for the City of Memphis.
The consulting group found the city paid more for health care coverage than Shelby County Government, Shelby County Schools and the state of Tennessee.
The group offered alternatives.
“We have a shrinking tax base and we can’t afford everything we used to pay for,” said Jim Strickland with the Memphis City Council.
It suggested Memphis offer fewer types of plans, set up something similar to health care spending accounts and offer reimbursements to those who make healthy life choices.
However, many in the room for the meeting were retirees concerned they’re being factored out of the health care equation.
“We’re saying lets be fair to to the taxpayer. Let’s be fair to the city and let’s be fair to these poor people, too because they did work hard,” Mike Lee the President of Association of City Retired Employees said.
Retirees don’t get raises and their insurance premiums are up.
That’s less money to live on and union reps said retirees deserve better.
“If we’re in that dire straight and they can’t afford insurance for the insurance and retirees and the people that work here, why are they spending and doing the things that they’re doing,” said Thomas Malone with the Memphis Fire Association.
The council votes on a budget next Tuesday.
That’s too soon to make the changes suggested happen so some council members said today was more of a long term planning session when it comes to health care.
