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Denham Springs approves employee benefits renewals; health plan to rise about 5.5% after high claims
Summary
The council approved a package of employee-benefit renewals in May 2025, including a Blue Cross health plan with a reported 5.5% premium increase, retention of a $3,000 health reimbursement arrangement, COBRA administration agreements, dental and vision plans, and a workers’ compensation premium of $381,819.
Denham Springs — City leaders voted in May 2025 to renew several employee-benefit contracts and related administrative services after staff described this year’s market conditions and recent high claims.
Karen Watkins was appointed agent of record for the city’s health insurance. An insurance representative told the council the city’s group plan showed a very high loss ratio over the last 12 months and that underwriting responses were limited when possible carriers requested loss information. The representative reported a “95%” loss ratio over the past 12 months and noted a different loss-ratio figure “since July 2022” that was discussed in the meeting record; staff described those figures while recommending a modest change to plan design.
On council motions, members approved renewal of the Blue Cross health insurance plan with an approximate 5.5% premium increase and a change to family surcharge handling that reflected including 30% for the employer’s “plus one” family contribution (up from 25% last year, as stated in the meeting). The council also retained a $3,000 per-employee Health Reimbursement Arrangement (HRA) to assist with out-of-pocket costs.
Administrative contracts and additional plans approved by the council included COBRA administration with a $4.50 monthly professional-link fee and WageWorks COBRA administration at $1.17 per month for eligible departing employees who elect continuation coverage. The council approved renewal of vision and dental plans (vision administered by Blue Cross; dental noted as $29.31 per month), and it approved Hidalgo Health Associates as the employee assistance program administrator at $1.77 per employee per month.
Councilors also approved the city’s workers’ compensation insurance with Louisiana Workman’s Comp Corporation at a premium of $381,819 for the policy year noted in the meeting record.
What matters: Staff framed the renewals as a response to unusually high utilization and loss experience in the city plan that limited carrier competition and required modest rate and design adjustments. The council voted to preserve the HRA level and to continue COBRA and benefits administration services to maintain continuity for employees.
Votes and formal actions: Appointments and contract renewals were approved by roll call during the meeting; motions and seconds were recorded and the clerk called each vote as part of the consent and individual motions.
