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Perry City reviews alternative employee health plan; broker says change could cut benefit costs
Summary
At a Perry City budget workshop, North Risk Partners presented an alternative to the city’s Blue Cross Blue Shield trust, saying a Health Partners national plan could mirror current coverage, remove a partial self‑funded second layer and produce roughly a 12% cost reduction (about $90,000 annually). Health Partners will attend a future meeting for follow-up.
Katherine Bolson of North Risk Partners told the Perry City Council at a budget workshop that the city has a viable alternative to the Blue Cross Blue Shield trust in a Health Partners national plan that could reduce employee benefit costs.
Bolson said the alternative would preserve most provider access while changing the city’s partially self‑funded structure. She described a plan design that “mirrors what you have currently today” but removes the second‑layer explanation‑of‑benefits arrangement, which the broker said would simplify administration and reduce overall costs. Bolson and staff estimated a roughly 12% reduction in employer costs and described scenarios yielding about $90,000 in annual savings if the city adopted the comparable Health Partners design.
The potential change requires a formal notification to the current trust by April 1 if the council intends to opt out; staff told the council that giving notice is a formality and that the city could rejoin the trust later if needed. Bolson said Health Partners will bring a prescription‑drug list, mail‑order options and virtual‑care details to a follow‑up meeting so employees can confirm whether essential medications and providers are in network.
Why this matters: employee health insurance affects payroll deductions and the city’s benefit budget. Staff noted employees contribute a share of premiums via payroll and that a lower plan price would reduce employee payroll charges as well as employer expenditures.
Council members and staff reported that employees have attended informational sessions and raised questions about coverage and prescriptions. Staff proposed conducting additional employee meetings and, if warranted, a phone poll of council members after further Q&A to decide whether to notify the trust by the April 1 deadline.
Next steps: Health Partners will be asked to provide a plan drug list and mail‑order details at the next meeting; staff will continue employee outreach and return to council with a recommendation and any required formal notice timeline.
