Mobile, Ala. (WALA) Mobile Mayor Sandy Stimpon is proposing pay raises for city employees, but also a hike in insurance rates. Stimpson says the insurance increase is justified.
“…When you compare what other metropolitan areas are doing, What’s going on the private sector, that’s market. That’s definitely market,” said Stimpson.
If Stimpson’s proposed budget is passed, starting January 2015, all current city workers will pay 20% of health care costs and the city would pay 80%. That is up from about 16% employees are paying now. All new employees would pay even more. New Employees 40% City 60% of health care costs.
FOX10 News is comparing the rates with Fairhope, Montgomery, Birmingham and Biloxi. Here is what we found.
The city of Fairhope pays 100% of the cost of health care for all employees.
Montgomery is transitioning into the city paying 66% of health care cost, employee 34%. In Biloxi the city pays 100% of the health care costs for single employees. For families, it pays 96%.
Finally, in Birmingham there are a range of rates for city employees.
Singles: city pays 75%
Employee plus one: city pays 66%
Family rates: city pays 60%
Stimpson’s proposed rates for new city employees measure up with what Birmingham’s rates are for a family. As for the proposed 80/20 rate, out of the four cities FOX10 News researched, the only cities that beat that rate are Fairhope and Biloxi which pay nearly 100% of the bill.