IRON MOUNTAIN — A possible change in health care coverage for city of Iron Mountain retirees carries too little savings to make it worthwhile, City Manager Jordan Stanchina said Monday.

The city explored a switch from a Medicare supplement plan to a Medicare Advantage plan for retirees age 65 and older, but the overall savings would be just $60,000 in the first year, Stanchina said. Initially, officials had hoped for an annual savings approaching $500,000.

“It’s not going to be worth the potential headaches,” Stanchina told the city council, pointing to adjustments in coverage along with future unknowns. “It’s too small of a window” to justify a switch, he said.

The Blue Cross/Blue Shield Medicare Advantage plan would produce a savings for the city of $515,988 for retirees age 65 and older, but there would be higher rates for active employees and retirees ages 50 to 65, Stanchina said.

Complications in the costs for prescription coverage are the main factor, he said. The overall rate for active employees would rise 53.5% while the rate for younger retirees would climb nearly the same.

It equates to an increase of $386,255, plus about $70,000 to compensate workers who contribute to their premium costs, leaving about $60,000 in overall savings, Stanchina said.

The city was aware a switch to Medicare Advantage could raise rates for active employees and early retirees but had expected it would be far less.

“It’s not helping us right now, but we’ll keep an eye on it,” Stanchina said.

On the plus side, the rate increase to renew the overall Blue Cross/Blue Shield plan effective July 1 is just 0.44%.

Although the city began phasing out retiree health benefits for new employees in 2009, it has outstanding liabilities estimated at $38.5 million. The quoted city premium for retirees for the next fiscal year is nearly $1.26 million.

In other action Monday, the council:

— Approved an Industrial Facilities Tax Exemption for BOSS Snowplow’s $6.7 million office expansion. The BOSS project, which will retain 60 jobs and create at least 12, qualifies for a 50% property tax reduction for 12 years. It marks the third BOSS project eligible for benefits under the Michigan Department of Treasury incentive program in less than two years, lifting the total investment at BOSS’s manufacturing facility north of Lake Antoine to $25 million. Ground was broken in October on the office project, which provides 15,500 square feet of new space and renovates 10,800 square feet of the current headquarters. The IFT certificate is contingent on BOSS agreeing to file no assessment appeals with the Michigan Tax Tribunal during the first three years of the abatement.

— Approved a special use permit application from Mariah Schewe for Billie’s Yogurt Shop, 406 East Grand Blvd., to allow a drive-thru and self-serve frozen yogurt and coffee shop. The city’s Planning Commission had recommended approval.

— Adopted a resolution of appreciation for recently retired Fire Captain Mark Drago, who served the city for 25 years. Drago was recognized for “selfless interest and concern for his community” and “extraordinary efforts to make Iron Mountain a better and safer community in which to live.”

— Reminded residents that, beginning this week, trash collection has switched from alleys to streets to protect the pavement. Alley pickup is scheduled to resume May 9.