Insurance agent reports lower workers'comp rate; health plan premiums expected to rise

An insurance agent updated the City Commission July 15 on employees' insurance and workers'compensation costs, saying the city's experience rating for workers'comp is 0.72 and that Florida Blue (Blue Cross/Blue Shield) has proposed a health-insurance increase the agent has, so far, negotiated down to 6.8 percent. The agent said a 0.72 experience rating means the city will pay "72 cents on the dollar" for workers'compensation for the policy year beginning Oct. 1, representing a roughly 28 percent savings compared with standard pricing. The agent also said the city is in the second year of a rate freeze on property and casualty coverage; the freeze covers those lines for two years but does not apply to workers'comp. On health insurance, the agent said the carrier originally sought a much larger increase; the agent has negotiated that ask down to 6.8 percent and is seeking a 4 percent increase. The agent said claims above $25,000 (13 claims listed in the handout) account for about $1,572,000 from Oct. 1 through June, and that total claims are approaching $2,000,000, roughly triple the city's current premium. Commissioners asked for comparative information about how the city's experience rating compares with other municipalities; the agent said the city is "double in most categories" compared with counterparts in several risk categories and is trending worse in some categories, a reflection of recent claims history. The insurance agent said he would report back with final numbers for the health-plan renewal at the next commission meeting; commissioners indicated support for returning with final figures during the budget process. No formal action or vote was taken at the meeting; the agent described ongoing negotiations with the carrier and recommended options would be brought back to the commission.