Belton renews health benefits Posted On: Wednesday, Nov. 25 2009 05:10 AM By Jade Ortego
Killeen Daily Herald

BELTON – The council renewed contracts for its employee health benefits Tuesday.

For the remainder of the fiscal year, the city will contract with Scott & White Health Plan for medical insurance, with MetLife for dental insurance and with Lincoln Financial Group for life insurance. All contracts are being continued from current plans, except for life insurance, which is the same plan through a new carrier.

The city budgeted $47,414 for employee benefits, but will spend only $7,392 because some rates decreased. The city is not providing disability insurance, mandatory or optional.

The new health insurance plan would penalize with a 1 percent tax per month each employee 65 and older who is not enrolled in Medicare Part D coverage in addition to the city's plan.

The plan is not considered creditable coverage, meaning it doesn't meet minimum standards in use by government providers like Medicare and Medicaid.

By creating a city of Belton Employees Benefit Trust to provide insurance to its employees, the city also saved about $12,000 in taxes.

Insurance carriers are required by the state to pay a 1.75 percent tax, and they pass it on the city by imbedding it in their rates. The State Insurance Code exempts carriers from this tax for a city that provides insurance through a nonprofit trust established to provide group health, accident and life benefits to its employees.

Mayor Jim Covington acts as the president of the trust, Mayor Pro Tem Marion Grayson as the vice president and the council as trustees.

The council also voted to ban the use of cell phones while driving in school zones, as required by recently passed legislation. The state law makes use of a cell phone while driving in a school zone a class C misdemeanor, unless the vehicle is stopped or the phone is being used hands-free.

"We want to eliminate all dangerous situations as quick as we can," Covington said.

City council members David Leigh and Wayne Carpenter recounted near-accidents with people talking on the phone or texting while driving, and suggested banning the use of phones on more streets.

"This is something we can legally do now, and this is certainly the first step," city manager Sam Listi said.

Contact Jade Ortego at jortego@kdhnews.co m or (254) 501-7553.