In a recent government meeting, officials discussed the upcoming changes to the city's medical and dental insurance plans, focusing on the proposals from Blue Cross and other providers. The current self-funded plan, managed by Blue Cross, has shown a favorable trend, with actual costs for the past year coming in slightly under the projected $2.2 million at approximately $2 million. However, projections for the next year indicate an increase to $2.4 million, representing an 8.9% rise, primarily driven by claims and fixed costs.

Blue Cross has presented both a self-funded renewal and a fully insured quote, the latter priced at $2.146 million. While this is lower than the projected self-funded costs, officials noted that transitioning to a fully insured plan could lead to significant rate increases in subsequent years due to the pooling of groups for risk management.

The discussion highlighted the unpredictability of healthcare costs, referencing past instances of substantial claims that could impact the city's budget. Officials were cautioned about potential runoff claims that would still need to be paid after transitioning to a fully insured plan, which could add hundreds of thousands of dollars to the overall costs.

In addition to medical plans, dental insurance options were reviewed. Ameritas, the current provider, proposed a 14% rate increase, while MetLife suggested a 16% increase. United Healthcare, however, offered a 10% decrease in rates, making it the most cost-effective option among the three.

The meeting underscored the importance of careful consideration regarding the city's healthcare strategy, balancing cost management with the need for comprehensive coverage for employees. Further discussions and decisions are expected as officials weigh the implications of these proposals.