Austin City Employees Upset About Insurance Plans

(ABC 6 News) – Austin city employees, from street workers to supervisors, were affected Monday after the city council approved a memorandum of understanding for 2023 health insurance contracts.

About 54% of city employees are currently enrolled in the city’s insurance plan. And if the premium rate falls below his 50%, insurance companies won’t even be able to offer the city to cover workers.

“Thanks to this insurance scheme, there is not a single person in this city who is not unaffected. said Mr.

According to Austin Firefighter Tom Schulte, insurance premiums have increased by 12% each year for the past three years.

This year, however, we expect an increase of about 31%.

Schulte spoke to the council before Monday night’s vote and told them to vote “No.” City officials were given an ultimatum to sign the memorandum, saying that if they didn’t sign, Tom’s family’s monthly insurance premiums would cost him more than $1,300. He says that for some it’s two house payments.

Each memorandum passed 5 to 1, with only committee member Joyce Poshsta voting against it outright.

Earlier this year, the city told employees it was going to switch insurance companies, but now employees say their copays and premiums have doubled. Although the plan itself is getting worse.

Employees have proposed to the city a plan to reallocate HSA money to premium costs in hopes that people will sign up for the city’s insurance plan.

“One of the problems is that we don’t have enough people in the plan to make it competitively priced. No. Today they have gone ahead with their proposal: A plan vs. a plan that is more effective for employees. Now employees have a lot of complaints about their insurance benefits,” said Schulte. .

Schulte has been employed in the City of Austin for nearly 17 years.

“When we first started out with insurance, it was affordable, and now it’s becoming our second mortgage,” explains Schulte.

And Tom says he’s not alone.

“It’s kind of disappointing that it’s where it is today. City Council, I want you guys to address this and fix it,” another city official said at the meeting.

“They are my colleagues. Even if they are not in my department, they are still my colleagues. increase.

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