LUB approves insurance rate increase
 

Parker Wright news-herald.net

Loudon Utilities Board moved forward Monday with its employee medical insurance plan.

Board members Tim Dixon and Gene Farmer motioned and seconded, respectively, to approve a raise in funding. The vote passed unanimously.

Before the vote, Ty Ross, LUB and city manager, referenced a metaphor he gave at the Feb. 10 workshop where funding for medical insurance was described as ketchup in a bottle.

“The problem is the funding of the plan and the amount of dollars going into the ketchup bottle so to speak,” he said.

He recommended an increase in monthly contributions. Ross said in previous years there had been a slight increase in monthly contribution amounts, but this increase would be more drastic “to ensure adequate funding at the level of the plan’s benefit going forward at least into next year.”

Medical contributions at the individual level will increase from $565 to $688 and at the family level from $1,680 to $2,058. Dental contributions at the individual level will rise from $30 to $35 and at the family level from $70 to $105. Vision contributions remain at the individual level at $8 and at the family level at $20. The increases will raise the total annual funding from about $2.8 million to about $3.4 million.

“There is a budgetary impact to that,” Ross said. “It will require a budget amendment this year for the utility in the amount of $131,440.”

March 1 is the renewal date with Humana.

Don Campbell, LUB chairman, raised concerns about changes to the medical insurance plan, which were discussed at length during the Feb. 10 LUB workshop.

“So we’re leaving the insurance as is?” Campbell said.

Ross reassured Campbell, the board and the public that the current insurance plan would remain the same, with only the contribution amounts changing.

He recommended council form a committee of members from the LUB, Loudon City Council, city employees and Loudon community members “in the coming months to explore future options for plan stability.”

In other news, Loudon Utilities Board:

• Authorized a contract for feeder circuit right of way clearing services and related work with Brewster’s Services Group LLC.

• Authorized a contract for mowing services and related work with Brewster’s Services Group LLC.

• Authorized the purchase of two 2020 Ford F-450 single-axle dump trucks for the gas department.

• Authorized a 1991 Chevrolet 2500 to be considered surplus.

• Established natural gas rates effective for March.