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Commission approves city coverage for 9% health‑insurance premium increase
Summary
The commission voted unanimously to accept a KC renewal that raises medical premiums by 9% with no change to plan design and to have the city cover the added cost for employees; staff said alternative plans would shift costs to employees or reduce benefits.
The Franklin City Commission voted unanimously to accept a renewal offer from KC for the city's employee health plan that increases medical premiums by 9 percent with no change to dental or plan design. Carol Rianbach recommended staying with KC, saying the renewal represented the best balance of cost and benefits available to the city.
"Medical is a 9% increase in premiums with no change to dental," Carol said, explaining that staying with KC resulted in a smaller increase than might have occurred on the open market. Commissioners noted staff had vetted alternative options that would have reduced premiums only by raising deductibles or lowering benefits.
Commissioner Pal moved to accept the renewal and have the city cover the 9 percent premium increase; Commissioner McQuary seconded. The motion passed on a roll-call vote with all commissioners voting yes. Staff said Kelly Harding from KC will hold informational meetings for employees next week and that open enrollment will be held as scheduled.
Why it matters: the city's decision to absorb the 9 percent increase avoids shifting costs to employees and preserves the current plan design, but it increases the city's personnel cost baseline and will be reflected in next year's budget.
What’s next: informational meetings will be scheduled for employees and open enrollment will proceed under the renewed plan.
