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Perry council approves move to Anthem Blue Cross Blue Shield; staff cites $900,000 projected savings
Summary
Council approved a benefits vendor change Oct. 7 — moving city employee health coverage to Anthem Blue Cross Blue Shield (and Sunlife) — a transition HR staff said would improve network coverage and lower some copays while saving the city roughly $900,000 next year, pending attorney review of contract language.
PERRY — The Perry City Council on Oct. 7 approved a recommendation from administration to shift the city’s employee health and benefits plan to Anthem Blue Cross Blue Shield and Sunlife, a move HR and the city manager said would expand provider networks and produce significant cost savings.
Mr. Smith summarized HR’s review of competitive offers and said employees would generally receive enhanced coverage at no additional employee cost while the city expects savings through negotiated network discounts. "With the proposal before you this evening, the city would transition from Sigma to Anthem Blue Cross Blue Shield... it would be a very beneficial move for a couple of reasons," Mr. Smith said, noting lower co‑pays for primary care visits and better network access.
The administration estimated approximately $900,000 in savings for the city in the next calendar year and recommended approval subject to the city attorney’s review of contract documents; council approved the change on that condition.
Why it matters: Employee benefits are one of the largest recurring expenditures for the city. Administration framed the switch as both a fiscal gain and an employee benefit enhancement that maintains current benefit levels while lowering some out‑of‑pocket costs.
Council direction: Approval was contingent on the city attorney reviewing the final contract language. No immediate changes to employee contributions were reported at the meeting.
Next steps: City staff will finalize contracts with Anthem and Sunlife, pending the attorney’s review, and implement the new plan for the 2026 benefits year. HR will notify employees of any changes to network or plan administration and timelines for enrollment.
