1241 HSA

CITY OF ELGIN, OREGON RESOLUTION 1241 (2007)

A RESOLUTION OF THE CITY COUNCIL AUTHORIZING PAYMENTS FOR HEALTH SAVINGS ACCOUNTS AS SUPPLEMENT TO MEDICAL INSURANCE PREMIUMS

WHEREAS: Resolution 1234 setting wages for 2007/2008 provides for payment of medical insurance premiums of $398 per month per employee, (employee only coverage) for those employees eligible to receive medical insurance benefits, and;

WHEREAS: Those employees receiving medical insurance benefits have elected to change to a low premium, high deductible medical insurance plan which provides for a Health Savings Account (HSA), and;

WHEREAS: The premium for the high deductible insurance plan is substantially less than $398 per month, being $309.72 per month, and;

WHEREAS: Since August 1 of 2007 the City’s premium contribution for each employee has been only $379.41, and;

WHEREAS: The HSA (savings account) is to compensate for the program’s $1,500 deductible;

NOW THEREFORE BE IT RESOLVED: That the City of Elgin will contribute $410.00 per month for each employee receiving medical insurance benefits for the remaining portion of the benefit year, through August 31, 2008, and;

BE IT RESOLVED: That the difference between $410.00 per month and the insurance premium of 309.72 per month, being $100.28 per month, be deposited into the HSA of each respective employee, or added to the employee’s wage if that employee is not eligible under IRS rules to contribute to an HSA, and;

BE IT FURTHER RESOLVED: That three months of contributions, $300.84 ($100.28 x 3) be deposited into the HSAs in advance at the beginning of the contribution year, from January 1, 2008, for each employee eligible to receive medical insurance benefits.

PASSED AND ADOPTED this 11th day of December 2007.