CLEARLAKE — The first item of business on the Clearlake City Council”s agenda tomorrow will be a consideration of sending a letter of support for SB 840, also known as the California Universal Healthcare Act.
At the request of Councilmember Joyce Overton, the panel will discuss authorizing the mayor to sign a letter of support to be sent to state legislators. According to the report prepared by City Clerk Melissa Swanson and Finance Director Michael Vivrette, the city projects a net savings of around $400,000 should SB 840 become law.
SB 840 was introduced by Senator Sheila Kuehl in 2007. According to the SB 840 Fact Sheet, the act would provide fiscally sound, affordable healthcare to all Californians, provide every Californian the right to choose his or her own physician and control health cost inflation.
Eligibility in the program will be based on residency rather than employment or income. California residents will not lose his or her health insurance because of unaffordable insurance premiums or because he or she changes or loses a job, or goes to or graduates from college or has a pre-existing medical condition.
The bill will require no new spending, the Fact Sheet says. The system will be paid for by federal, state and county monies already being spent on healthcare and by affordable insurance premiums that replace all premiums, deductibles, out-of-pocket payments and co-pays now paid by employers and consumers.
According to a memorandum prepared by Vivrette, the city projects paying $856,000 next fiscal year for healthcare premiums for 48 participating employees of which $128,000 will be borne by the employees. In addition the city will pay $82,000 to 10 employees who do not participate in the healthcare program offered by the city. The net cost of healthcare insurance including dental and vision is projected at $810,000.
Under SB 840, the city will have net savings on employees currently covered and on the employees being reimbursed for nonparticipation. The payroll tax roll tax will cost $14,274 for part-time employees currently not insured by the city. Net city savings will likely exceed $400,000, not adjusted for additional cost of revising union contracts and compensating employees for additional costs.
Healthcare costs are rising at double the rate of inflation, according to the Fact Sheet. Health insurance premiums have increased 87 percent since 2000, with the average employee contributing 143 percent more to their company-sponsored health insurance. Meanwhile, wages have only increased 20 percent over this time period. Healthcare costs have outpaced increases in wages by a ratio of 4:1 since 2000.
The Clearlake City Council meeting will begin at 6 p.m. Thursday, Aug. 14 at Clearlake City Hall. Other items of interest on the evening”s agenda include consideration of opposing rate increases requested by Golden State Water Company and consideration of responding to the Grand Jury report, among other items to be discussed. Complete agendas are available during normal business hours at city hall.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com.
