The Henderson City Council voted last night to allow members to take the cash value of its health insurance benefit rather than accept health insurance coverage.
At the beginning of the debate, City Mangager Jerry Moss reported on a meeting held Monday morning regarding insurance and salaries of elected officials. He reported that after looking at the same cities used to determine the city manager’s salary that when the insurance benefit was considered, Henderson City Council salaries are mid-range when compared to those of other municipalities.
Moss stated that city council members could opt out of health insurance coverage without any change in the budget, as long as the city did not drop below the thresh hold of the minimum number of participants. He added that this was unlikely, as the city was set to add fifteen positions in the coming fiscal year.
Insurance can be paid to council members in the form of cash rather than coverage, to put it simply.
Moss stressed that this option is not available to regular employees of the city.
It was further determined that health insurance and dental insurance are separate policies. A council member can retain dental insurance and receive the cost of health insurance in lieu of coverage.
At the urging of Henderson Mayor Clem Seifert, council member Mary Emma Evans moved that the option be adopted as council policy. Council member Garry Daeke seconded the motion.
Council member Bobby Gupton, who spoke against a pay raise for council members at the last council meeting, commented that council member would be giving themselves a $300 pay raises.
“I think it’s excessive,” Gupton stated.
He indicated that the inclusion of the insurance premium would more than double his salary.
According to Gupton, pay for council members would go from $276 per month to $578 with the new policy.
Council member Ranger Wilkerson commented that the city is still paying either way.
Gupton rejoined that the city should also share in the savings.
Daeke stated that a member could refuse the insurance and the money as well.
“I like this idea more than any I’ve heard,” Wilkerson said, referring to the option of receiving cash instead of insurance.
“I can use the money,” Gupton said. “But I’m having guilt pangs.”
Moss informed members that as long as council members are considered city employees, the city insurance is considered primary insurance.
Harper commented that no matter how the vote turned out that she was going to discontinue her city health insurance. She expressed a concern that any treatment begun under the city plan would be considered a pre-existing condition under her personal insurance. Evans also stated that she would have to drop her city health insurance for the same reason.
City Attorney John Zollicoffer raised doubts as to whether this would be the case, stating that as long as the other insurance was maintained, there should not be a problem with a transition once city coverage was terminated.
“It ain’t no raise. It is, but it ain’t,” Wilkerson said before the final consideration of the motion.
When the motion was eventually voted upon by the council, all members voted to enact the policy except Gupton. Gupton stated to Home in Henderson last week that he would oppose any pay raise for council members.
It is unclear whether or not the new city policy represents a pay raise. Although it has the potential to increase the amount of money paid to council members each month, insurance coverage can potentially be worth significantly more or less than the cost of the premiums, depending on the health of the individual, even as supplemental insurance.