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Kennett approves new level-funded employee health plan; city says it should save about $68,000
Summary
Council approved a level-funded health insurance plan for city employees that the presenter said would lower the city's combined cost and reduce deductibles for employees while keeping coverage largely the same.
Kennett City Council approved a change to its group health insurance arrangement intended to lower the city's combined cost and modestly reduce employee deductibles.
City staff told the council that the city and utilities currently pay roughly $1,723,000 annually for the shared plans. Under the plan the council approved, a level-funded option was presented with an estimated combined cost of $1,656,000, described in the meeting as roughly $68,000 less than staying on the current plan. The presenter also described an alternative lower-deductible option with a combined cost around $1,714,000.
Staff said the change would create a narrow network and that the city had negotiated contracts with local provider Saint Bernard's as part of the arrangement. Under the proposed structure, funds that are not used within the plan year would be returned to the city, allowing future rate reductions or coverage changes. Staff said employees who choose to go outside the preferred network would be responsible for higher deductibles and cost differences.
Council members were told the city covers about $600 per month for each enrolled employee; staff said under the new option employees would see modest monthly savings compared with current employer/employee cost splits. The city said about 60 employees are covered under the combined plan with the utility. Staff also said employee enrollment would begin Monday and that final numbers would be available about 10 days after the meeting.
Council members voted to approve the plan as presented.
