Council renews employer HSA contributions for 202425 plan year

City staff recommended that the city again contribute to employee health savings accounts to encourage enrollment in the high-deductible insurance option. Mr. Green said the HSA plan is approximately $4,000 cheaper in premiums than the PPO alternative but exposes employees to higher out-of-pocket costs; the employer contribution is intended to offset deductible risk.

The council approved the recommended contribution levels: $3,000 for family coverage and $1,100 for single coverage, to be paid quarterly and to cover the plan year beginning Sept. 1, 2024 and ending Aug. 31, 2025. Staff said adoption at this meeting is timed to inform open enrollment in June and July.

The resolution passed unanimously and HR was directed to include contribution details in open-enrollment communications so employees can decide whether to enroll in the HSA-linked plan or switch back to the PPO.