Everett Employee Health Plan Leading to Huge “Cadillac Tax” Under Affordable Care Act

Everett budget deficit

Everett needs to figure out how to move its money for best returns.

While health care is a major cost for most all employers, the city of Everett’s generous employee health benefits may cost it more than $1.5 million dollars in a so-called “Cadillac Tax” under the Affordable Care Act. That wouldn’t kick in until 2018 but several city council members are expressing concern that the city would be paying such a high price for providing top medical benefits to its employees.

At Wednesday night’s Everett City Council meeting Keith Robertson from Alliant Insurance Services, Inc. (the city’s insurance consultant) gave the council an overview of current healthcare spending on city employees. Some of the highlights include:

  • Everett is self-funded and does not pay traditional insurance premiums for health coverage.
  • In 2004, the per employee health cost for each City of Everett employee was $777.82
  • In 2014 the per employee health cost is $1152.86
  • The maximum out of pocket cost a City of Everett employee has to pay for a medical condition is $750.00
  • If Everett went into an insurance pool, costs would likely go up by $1 million dollars a year.

Everett is currently looking at ways to trim a growing budget deficit and trying to find ways to cut costs and grow revenues to close the financial gap. On June 4th the Mayor is scheduled to give his budget reduction recommendations to the Everett City Council.

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About myeverettnews

My Everett News is a hyperlocal news website featuring breaking news and events in Everett, WA. We also cover City of Everett information and items of interest to those who live and work in Everett. It’s written by Leland Dart a former Snohomish County based radio reporter born and raised in Everett.

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One Response to “Everett Employee Health Plan Leading to Huge “Cadillac Tax” Under Affordable Care Act”

  1. John Epping Says:

    More specifics would be helpful. Are these monthly costs or annual? It’s not obvious. Many plans cost $800/month, but the health costs to the plan aren’t that high, often much lower. Also, are these costs per family or per plan subscriber?

    Without this context, your article is nearly meaningless.