City tries to tame rising health insurance costs

Morgan City officials are exploring options to try to keep city health insurance costs from rising by about $360,000 within the next year.
On Tuesday, the City Council approved renewing the city’s health insurance plan with Paul’s Agency through the end of June.
Premium costs to the city will rise by about $31,000 for the month of May, all of which the city will absorb and not pass along to employees, Mayor Frank “Boo” Grizzaffi said. The proposed annual health insurance plan would cost the city $364,000 more than last year, he said.
Because of the potential premium increases, Grizzaffi is looking at other options to lower costs and will present the best option to the city’s insurance committee within a few weeks, he said. Grizzaffi hopes to have a decision ready by mid-May and be able to renew the health insurance plan June 1, he said.
Paul’s Agency presented several different options to attempt to get lower rates for the city’s 263 employees, Shelley LeBlanc of Paul’s Agency said. Active employee claims caused the steep increase in health insurance premiums, LeBlanc said. The city’s loss ratio during a two-year period is the worst the city has seen in the past decade, she said. The loss ratio divides the claims paid by the premiums paid, and 2015 saw a 132 percent loss ratio, LeBlanc said.
“Insurance has gotten to a point where the city can’t afford it, and the employee can’t afford to use it,” Grizzaffi said. “That’s why we need to address all options.”
Councilman Barry Dufrene said it’s important to keep health insurance affordable for employees while still complying with the Affordable Care Act.
Also during the meeting, the council approved amending the city’s truck route ordinance. In 2004, the city received complaints about waste trucks going through the community on the south side of Morgan City, Councilman Ron Bias said.
With the assistance of parish and state officials, the city was able to build a route for trucks to take called Industrial Road, Bias said. The Industrial Road was completed in 2015.
However, there were still some problems with trucks traveling through the community, mainly on Barrow Street, he said.
Therefore, Bias decided to introduce an amendment to the ordinance that would remove Barrow Street, from First Street to Fourth Street, from the truck route. The amendment passed unanimously Tuesday.
The council went through a first reading of an ordinance to adopt the 2016 tax year millage rates. That ordinance will have a public hearing and be up for adoption in May. City officials chose not to roll forward millage rates despite increased property values, Grizzaffi said. To remain revenue neutral, if passed, the city’s millage rates will drop from 14.78 mills to 14.75 mills, he said.
In other business, the council:
—Approved the St. Mary Chamber of Commerce to hold the 5th Annual Bayou BBQ Bash July 22-23 under the U.S. 90 bridge in Morgan City and associated street closures, including Third Street, both sides of the bridge, from 4 p.m. to 10 p.m. July 22 and from 7 a.m. to 10 p.m. July 23; Arkansas Street, both sides of the bridge, from 4 p.m. July 22 until 6 p.m. July 23; and Greenwood Street at Second Street and Arkansas Street from 7 a.m. to 6 p.m. July 23.
—Approved Woodrow Parker to hold the Aqua Safety First Water Program June 4 at the Morgan City public pool contingent on Parker meeting with City Recreation Director Dwayne Barbier.
—Approved the World Missions Free Tennis Camp to be held at Lawrence Park from 8 a.m. to 9 a.m. July 11 and July 13 , and July 18 and July 20.
—Approved the Lake End Park Concessions Commission recommendation to provide Mike Liner and Arissa Price of Southern Sno & More of Morgan City concession rights at Lake End Park at a cost of $1,500 per year.
—Approved the finance committee’s recommendations to allocate $23,000 from the sewer capital additions and contingency fund to add to the $60,000 budgeted for the purchase of a generator.
—Approved Class A liquor and beer permits for Brian J. Blanchard of Bay City Bistro and Norris C. Alston of The Galley.
—Approved a pre-clearance Class B liquor license for David Nhan of LA Mart.
—Approved the appointments of Thelma Berry Young to the Housing Authority Board and Sara Kidd to the Civil Service Board.