Fenton committee delays decision after insurer cites near-24% health-plan renewal
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Summary
City staff and a benefits broker told Aldermen that Anthem renewal initially came in at 28% and was negotiated to about 24%; board voted to continue the item for more information and return next week.
The Fenton Board Committee on April 3 heard that the city's group medical renewal from Anthem came in sharply higher this year and voted to postpone a final decision until more information is provided.
Amy de Blasio of the Daniel and Henry company told the committee the Anthem renewal originally arrived at a 28% increase and she negotiated roughly 5% in relief, bringing the city’s proposed overall increase to about 24% for the 2025–26 plan year. De Blasio said the renewal reflects three drivers: the performance of the pooled MiWAA block, the city group’s own risk (capped by MiWAA at 15%), and the membership’s age profile. "The medical renewal from Anthem originally came in with a 28% increase, and I was able to negotiate 5% relief, which brought you down to, basically a 24%," de Blasio said.
Why it matters: a near-24% renewal would significantly affect the municipal budget and employee take-home pay, and the committee sought more detailed options before approving plan changes.
De Blasio described the MiWAA (the chamber plan) as a large multiemployer welfare arrangement that caps any single group’s risk at 15%. She told the committee that outside carriers quoted substantially higher options (she said fully insured quotes from Anthem and UnitedHealthcare would have been in the 70%–90% range). De Blasio also told aldermen the city group has relatively high utilization and several high-cost claimants; she reported roughly 90% of plan members are aged 40–60, which she said is an unfavorable demographic for premiums. The broker said one way to reduce premium cost is moving employees to higher-deductible plans, but warned that increased out-of-pocket costs can reduce access to necessary care.
Alderman Hill asked for more time and more detail on the three alternate plan options that de Blasio had prepared, and moved to continue the item for one week so staff could provide clearer comparisons and cost impacts. The motion to continue was seconded by Alderman Lang and carried by voice vote.
Clarifying details provided at the meeting: the renewal effective date is June 1 and staff advised that a decision by about May 15 is needed to ensure new ID cards are issued by June 1; the broker said the national average renewal for 2025 is roughly 8%–10%. Committee members emphasized preserving access to medications and primary care while containing premium growth.
Next steps: the committee directed staff and the broker to return at the next meeting with comparative plan summaries, member-impact estimates, and enrollment deadlines so the board can decide on a base vs. higher-deductible option.
