City Council reviews new health insurance proposals amid cost increases

The Danville City Commission held a regular meeting on March 10, 2025, focusing primarily on the renewal of health insurance plans for city employees. The meeting highlighted significant changes and negotiations regarding medical, dental, vision, and life insurance coverage.

City officials discussed the upcoming renewal of the health insurance plan, which is set to take effect in May. The city currently operates a self-funded medical plan, and officials reported a projected increase in costs due to rising member enrollment, inflation, and higher-than-expected claims. The maximum liability for the current plan is expected to reach $3.2 million, with a proposed renewal amounting to $3.7 million, reflecting a 14% increase. Negotiations with providers initially suggested a potential increase of up to 50%, but successful discussions helped mitigate this rise.

The dental plan was also a focal point of discussion. The city is considering switching from Delta Dental to Humana, which would allow for expanded coverage beyond the current $1,500 annual limit. The proposed Humana plan would increase costs by $3,000 annually but would offer better coverage options, including a higher percentage of coverage for basic and major services and no cap on total dental expenses.

In terms of vision insurance, the city is looking to transition to Humana as well, which would provide additional discounts and coverage beyond the current plan. This change would result in a $3,000 increase in annual costs but aims to enhance benefits for employees.

The meeting also addressed life insurance coverage, with recommendations to increase basic life insurance from 1.5 times to 2 times employees' salaries and to raise the line of duty rider for first responders from $50,000 to $100,000. This change would incur an additional cost of approximately $14,000.

Lastly, the city discussed its pharmacy benefit manager, TrueRx, and the associated SHARKS program, which has reportedly saved the city significant costs on pharmaceuticals. The program is projected to save the city around $257,000 by the end of the year, with a minimal fee increase of 1.5% for the upcoming renewal.

Overall, the meeting underscored the city's commitment to enhancing employee benefits while managing costs effectively. The proposed changes are aimed at improving coverage and support for city employees, reflecting feedback gathered from staff. The commission will continue to evaluate these proposals before finalizing decisions in the coming months.