Indianola council hears health-insurance renewal options, keeps stop‑loss at $100,000

A Holmes Murphy consultant presented the city of Indianola’s proposed 2025 employee benefits renewals and budget options at the March meeting, outlining medical and pharmacy trends, stop‑loss choices, pharmacy rebate options and recommended vendor changes.

Holmes Murphy said the plan—urrently averages $1,009.85 in claims and administrative cost per employee per month while the city—udget is set at $1,071.03 PEPM. The consultant noted pharmacy rebates year to date total about $54.45 per employee per month and historically average near $63.35 PEPM; the firm also reported no members had breached the plan—arrier nnual specific stop‑loss threshold so far this plan year.

Why it matters: the city is self‑funded and holds a health‑insurance reserve of roughly $3 million. Renewal choices — including stop‑loss levels and whether to accept a guaranteed pharmacy rebate credit — affect the city—udget, the reserve drawdown and the risk of a larger future premium increase.

Holmes Murphy outlined the renewal numbers submitted by Wellmark. Fixed administrative fees proposed by Wellmark were shown rising about 11.5% (for example, an admin fee moving from $50.75 to $53 per employee per month), and stop‑loss costs projected to increase from about $210.67 to $242.48 PEPM. The consultant explained stop‑loss underwriting and why carrier…