Augusta commissioners voted Tuesday to raise employee health insurance premiums and hospital deductibles in an effort to reduce a looming $21 million budget deficit.
Workers earning under $50,000 will see their monthly contribution increase by $7.17 for one person up to $18.51 for a family of three or more. Higher-paid employees will see premiums rise by up to $46.28 for a family enrolled in the HMO with a wellness plan, or $1,110.72 per year.
The commission also raised the employee deductible for hospital stays to $500, or $1,500 per family, beginning next year.
The changes are a last-ditch effort to cut health insurance costs after the city’s self-funded plan ran $7 million over budget this year. Augusta has increased employee rates only once since adopting a self-funded model in 2012 and faced a Nov. 1 deadline before open enrollment.
Interim Finance Director Timothy Schroer said the increases will generate a “total cost shift” of $1.1 million and free up $590,000 for the city’s general fund and law enforcement budget.
He noted that raising deductibles for all medical costs to $3,000 per family could save over $2 million but would likely discourage care. Returning to a fully insured plan would raise costs by about 12%, Schroer added.
Despite the changes, Augusta’s plan remains generous compared to comparable governments, where deductibles often exceed $1,200.
Interim Commissioner Tanya Barnhill-Turnley, who made the motion to approve the increases, said the city must “ease people into this.”
“We’re probably going to have to raise rates again next year and for several years,” she said. “We’ve got to ease people into this, especially because we have done nothing in the past.”
The measure passed 7-0 at the end of a five-hour meeting that had almost lost its quorum. Commissioners Jordan Johnson, Stacy Pulliam, Brandon Garrett and Tony Lewis were absent for the vote.
Other action: Charter, fire, housing
Charter Review Committee Secretary Angela Bakos asked commissioners to amend the committee’s enabling resolution to require commission approval before any charter changes go to the legislature.
“We found out who the baby daddy is, now we need to talk custody,” Bakos quipped, referencing an earlier meeting metaphor.
Richmond County Schools Trustee Monique Braswell promoted her annual holiday meal giveaway, “Feast before the Feast,” and asked commissioners for personal donations.
Retired Fire Capt. Charlie Coleman criticized what he called a “top-heavy” fire department. Fire Chief Antonio Burden defended the department as “progressive,” noting new recruitment policies and a reduction of about 2,000 calls from the previous year.
Zoning, development votes
Commissioners voted 9-1 with Mayor Pro Tem Wayne Guilfoyle opposed and Lewis absent to approve a 30-home subdivision on church-owned property at 400 Warren Road. Some Montclair residents objected.
“It doesn’t make sense,” said Kathy Kennedy of Crane Ferry Road, arguing the 800–900 square-foot homes priced at $250,000 would be difficult to sell.
They also voted 10-0 to approve Cyber Housing LLC’s rezoning of 26 acres at 2384 Gordon Highway for a planned mix of single-family homes, duplexes, and townhomes.
The commission voted 9-0 to postpone abandoning Bolt Drive, which bisected the former Dogwood Terrace housing site, after residents of nearby south Nellieville said the proposed gated redevelopment would isolate them.
“We don’t want to be blocked out,” said homeowner Arvella Robinson. “I cannot support shutting off an established neighborhood,” Commissioner Francine Scott said.
Care home postponed
Commissioners voted 7-0 to delay approval of an Abbey Road personal care home until operators meet with neighbors. Barton Village residents cited heavy Barton Chapel Road traffic and objected to a business in a residential area.
“We put money into this community as well,” said Eric Gaines, who owns a nearby home. “You are supposed to be voting the will of the people.”
The operators said they already invested nearly $300,000 in the project.
In other business
- After more than two hours in a called closed session, the commission took one action, to extend an “access and exclusivity” agreement for development of the city-owned Depot site until Dec. 12.
- The commission accepted a $9,000 donation from I Love Augusta to rebuild a brick wall at Magnolia Cemetery toppled by Hurricane Helene.
- The commission reappointed 911 Director Daniel Dunlap to the Region 6 EMS Council.
