Beaver City council approves 4.9% medical-insurance renewal with HUB broker

Beaver City on Sept. 23 approved a one-year renewal of the city’s group medical insurance through the plan brokered by HUB, accepting broker Bill Phelps’ recommendation to renew at a 4.9% increase.

The council acted after a presentation from Bill Phelps, who said the renewal rate came in at 4.9% and that the insurance pool has historically returned a small rebate to members. Phelps said rebates were 1.1% in 2022, 1.7% in 2023 and 1.2% in 2024; based on that history he estimated this year’s rebate could be about 1% of the city’s premium, lowering the effective increase.

The presentation included sample premium changes by tier and an estimate of the city’s bottom-line cost. Phelps said the raw increase would add about $23,049 before employer/employee splits; after employer/employee contributions the city’s expected new annual medical cost was reported as $21,001.40. He told council members that comparable private-employer renewals he and his colleagues have seen this year were generally higher, with many in the high single digits to low double digits.

Council members asked whether the renewal required a formal motion. Council member Tyler Schema moved to approve the renewal as recommended by Phelps; Council member Lance Cox seconded. The council voted verbally in favor and the mayor declared the motion carried.

Phelps told the council that additional carrier quotes (SelectHealth, United, Blue Cross) were not yet available but that staff could run those comparisons once they are. He also encouraged the council that remaining on the recommended plan for one more year was a sound option given the current market and the rebate expectation.

The council directed staff to place the renewal on a future agenda for record-keeping and follow-up comparisons when competing carrier quotes arrive.