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Commission approves 2025 employee insurance renewals as premiums rise
Summary
City staff reported a 21% increase on health premiums and asked employees to assume an additional 10% of premium costs; the commission approved the health, vision and supplemental insurance renewals for 2025.
Arkansas City commissioners voted Nov. 4 to renew employee health, vision and supplemental insurance plans for the 2025 plan year after staff reported a significant premium increase and recommended a change to employee premium contributions.
Marla McFarland, presenting the insurance items, told the commission the city received a renewal proposal from Blue Cross Blue Shield that produced ‘‘a rather substantial increase of 21%.’’ She recommended keeping the plan design unchanged for 2025 but asked the commission to direct staff to increase the employees' share of premiums by 10 percentage points via payroll deduction.
McFarland said the city's plan design remained competitive compared with alternatives and noted the city maintains a retro account that historically produced rebates; she told the commission, however, that the account is ‘‘about $707,000 in the hole’’ and that costly claims drove the recent rate increase. Commissioners discussed budgeting and how trend reports will guide future appropriations.
On vision insurance, staff introduced an additional 'gold 200' option that pays up to $200 toward frames; McFarland said only a small number of employees participate in the vision plan and reminded commissioners that supplemental plans are optional. The commission also approved updated supplemental post-tax plans (accident, cancer, critical illness) offered through a new broker; staff clarified benefits under those policies are paid directly to policyholders.
The commission approved the package by voice vote. Human Resources and Payroll were directed to implement any approved payroll-deduction changes, notify employees ahead of open enrollment (scheduled Nov. 14–15), and provide vendor information at mandatory benefits meetings.
