Staywell Overview

Stay Well Fund Overview and Recommendations

City Council Resolution 6816 • SECTION 1. That the City Manager will implement changes to the Stay Well Fund to provide for a minimum savings of $1,030,000 in the Approved FY 2022-23 Budget.

• SECTION 2. The City Council recognizes that $3.9 million of American Recovery Plan funds are being used to subsidize the Staywell Fund in Fiscal Year 2022-23. The savings in Section One of this resolution is insufficient to produce long-term financial sustainability. To account for the loss of this subsidy, the City Council directs the City Manager to evaluate and recommend other viable options in addition to those contemplated in Section One of this resolution to ensure the longrange financial sustainability of the Staywell Fund for Fiscal Year 2022-23 and beyond and to ensure the City is able to maximize taxpayer dollars in pursuit of the delivery of basic services on behalf of the citizens of Independence. These recommendations shall be presented to the City Council by August 1, 2022 in order to meet the Open Enrollment period in the fall of 2022 (anticipated to be October and November 2022) and made effective for the 2023 Staywell Plan year commencing January 1, 2023.

• SECTION 3. The Proposed Budget includes a 10 percent premium increase for Fiscal Year 2022-23. In the event health insurance savings for employees and non-Medicare eligible retirees that meet the Approved Budget for Fiscal Year 202223 are not identified and implemented prior to August 1, 2022, the City Manager shall propose to the City Council approximately $1 million dollars in structural reductions among all general fund departments for the 2022-23 Fiscal Year.

Five Year Financial Forecast Fund Balance versus policy (16% of revenue)

$9,245,510 $6,051,433

$6,591,442

$5,301,516

$5,700,364

$9,245,510 $6,508,055

$5,700,364

$3,778,214

$240,845

$5,597,702

17-18

18-19

19-20

20-21

21-22

21-22

22-23

23-24

24-25

25-26

26-27

Actual

Actual

Actual

Actual

AD Budget

Forecast

Budget

Forecast

Forecast

Forecast

Forecast

Ending Unassigned Fund Balance

Reserve Target

Health Benefits Overview

Medicare Retirees Medicare Dependents

Group

Total-Post 65 Retirees and Dependents

Total Enrollment 20211

Total Enrollment 20221 625 340

956

965

Pre-65 Retiree

177

Pre-65 Retiree Dependents

147

Total Pre-65 Retirees & Dependents (Stay Well)

320

Active Employees

324 853

Active Employees Depedendents

1,350

Total-Active Employees & Dependents (Stay Well)

2,277

2,203

TOTAL INSURED

3,553

3,492

1As of August 1

Stay Well Fund-Resources • Stay Well Fund is internal fund that supports the City’s self-insured plans • Covers active employees, Pre-65 Retirees, COBRA, and dependents 20%

80%

Public Resources

Employee/Retiree