- Paris Flash
- Real Estate
By CHARLES RICHARDS
At the request of eParisExtra!, city finance director Gene Anderson explained the City of Paris employee insurance plan.
“Well, what the city does, the city budgets a flat amount per employee. And that amount currently is $425 per month. The city offers six different health plans, and the employees can pick whichever they want.
“Now, if you want the one with the broadest, deepest coverage, the $425 doesn’t quite cover the cost. The employee has to pay a few dollars more for that coverage.
“The five other plans actually cost a little under $425. It varies depending on which plan they pick.
“The city pays that premium, whatever it is, and the difference in that premium and $425 goes into a health reimbursement account (HRA) that the employee can use for things that aren’t covered under the plan — such as over-the-counter drugs, or prescriptions that aren’t covered because of the deductible, something like that.
“Now, we also allow, if the employee wants to, instead of putting that money into an HRA for his use, we will allow him to apply that to a dependent’s premium if he has dependents. We have employees who do it both ways.
“Whatever they do is capped at $425. It doesn’t go to the employee. That $425 is health insurance, and we pay it either directly to the premium or put it in their HRA. It’s got to be used for medical.
“The benefit is the same for a single employee as it is for an employee who is married and has five kids. Everyone gets the same $425 a mnth.
“If they pick the Plan 6, for example, and it’s got the lowest premium, it’s also got the higher deductible, a higher out-of-pocket, and they’re just bearing part of the risk.”
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