Aldermen wrestled at length Tuesday night but finally were ableto pin down a plan that will cost many employees more to be coveredby the city’s insurance.

Insurance costs became the main event Tuesday as the boardcontinued work on the city’s new year budget. The city’s insurancepremium initially was slated to increase 25 percent, but planchanges adopted Tuesday night will lower the increase to 16percent.

“Changes have to be made in insurance this year,” Mayor BobMassengill said as the board began its lengthy discussion.

While officials were prohibited from discussing specificemployee situations, they said the city’s claims year was not good.City Clerk Mike Jinks said the insurance company this year paid outmore than $1.7 million in claims while the city paid $1.2 millionin premiums.

“We had a terrible year,” Massengill said, mentioning twosituations that cost more than $250,000 each.

Officials discussed a variety of insurance plan options Tuesdaynight, each of which included doubling the employee deductible from$250 to $500. An assortment of other cost-saving measures also wasdiscussed. Also recommended was raising the employee’s contributionfor dependent coverage from the current $55 a month for medical anddental benefits.

Finally, aldermen agreed on a plan that would double theemployee’s deductible and out-of-pocket stop-loss expenses and alsoincrease the employee’s drug card co-payment costs. Most otheraspects of the current plan were left intact.

For deductible coverage, the employee’s cost will increase from$50 a month to $150 for medical coverage, plus an additional $25 amonth for dependent dental coverage. Insurance for employees willstill be fully paid by the city.

Officials suggested more action may be needed in the future tocontrol insurance costs.

“This is a step, but it’s not the whole solution,” said Aldermanat large Les Bumgarner.

Ward Two Alderman Terry Bates was the lone vote against theinsurance plan adjustments. He voiced concerns for employees on thelower end of the pay scale.

“They’re going to holler,” Bates said.

Other officials disputed that assertion. Jinks said 95 of 160city employees have dependent coverage, but many employees makingless than $10 an hour are taking dependent coverage.

Ward Five Alderman D.W. Maxwell said it was time to do somethingdrastic with the insurance.

“It should have been done in years past,” said Maxwell, addingthat he would suggest hiring no more employees other than forpart-time work. “This is killing the city … it can’t continuethis way.”

Other suggestions were to have employees pay half the costs fordependent coverage or to pay a percentage of their own costs – theidea being those changes could prompt some to opt out of thecoverage. Those suggestions were rejected.

Massengill indicated the board had to balance taxpayers’interests with those of city employees.

“We’ve got a responsibility to spend taxpayers’ dollars wisely,”said Massengill, although he added the board could not raiseemployees’ insurance costs a tremendous amount in one year. “Theaverage employee can’t afford that.”

To offset concerns about the net loss for employees who willhave to pay more, Massengill suggested calculating 5 percent payraises instead of the previously-approved 3 percent. He also backedoff his idea for performance-based pay plan.

“Maybe this is not the year to do it because we’re going toaddress the insurance,” the mayor said.

There was no action taken on that suggestion.

Officials said the city could not afford the 25 percent increasewithout raising taxes. Massengill said other options were todecrease benefits or increase the employee’s cost for the plan.

“We’ve had the Cadillac of policies, and we have to get it undercontrol,” Massengill said.