pages: CityCouncil/2013-07-23.pdf, 13
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CityCouncil | 2013-07-23 | 13 | The Finance Director stated Bartel and Associates is going to do an actuarial study update and review a number of different health factors; the study could include the effects of Obama Care and an update could be brought to Council. Doug Pryor, Bartel and Associates, stated whether or not rates are coming down depends on who you talk to; Bartel and Associates has not adjusted projections on where premiums are going; the matter was raised as part of the discussion about cashing out similar to Beverly Hills; one of the advantages to keep in mind is the City would not cash people out at the full benefit value; a soft debt is being changed for a hard debt with bonds; Beverly Hills determined the worth and provided some fraction to entice people; the estimate might be to cash out 70%; however, based on the variable of healthcare reform the amount could be dropped by a little bit; Obama Care has so many variables that no one knows where go premiums will go. The City Manager noted the Beverly Hills plan was optional and was not imposed on entire bargaining units; stated each individual makes a determination. Vice Mayor Ezzy Ashcraft stated a vote of the entire bargaining unit would not be needed; the City does not know where the Affordable Care Act is going to lead; right now, the Act is on hold; assuming that medical rates and medical care costs are going to increase is safe; if rates do not increase, the City would be in better shape and the windfall could be added to the trust fund; however, she concurs with Mayor Gilmore; she would like information amplified when the matter returns; the City should not be frozen into inaction because the future cannot be shown in a crystal ball; actuarial studies are the best that can be done; concurred with Councilmember Tam that the Affordable Care Act would bring rates down by sheer competition even for a third knee for a 80 year old; not knowing should not keep the City from tackling a problem which is getting worse. The Finance Director stated the City has been trying to tackle OPEB on a very incremental basis over time, which is continuing; OPEB cannot be solved in one day; the City is trying to take smart, reasonable steps to inch itself into a better position; a recent announcement about Obama Care indicated implementation has been delayed for one year from 2014 to 2015; the City is under PERS Health, which tends to be more comprehensive than other health plans; Obama Care may have some impacts; however, coverage is already higher than most standard plans; the City should go forward with reasonable, conservative assumptions about where healthcare is going in the future; having a little extra in the bank does not hurt. Mayor Gilmore stated the goal is to have a plan to address OPEB liabilities; in the early 2000's, the liability was not even reported; the City started reporting the liability, then, noticed the number was really big and has become even bigger; the goal is to have a plan to address what has accumulated for 30 or 40 years; the City should have a plan rather than kicking the can down the road; hopefully, the plan will be viewed as a positive, not only by citizens, but by bond agencies because the City may need to float Regular Meeting Alameda City Council 12 July 23, 2013 | CityCouncil/2013-07-23.pdf |