Council approves insurance renewal after 19% rate increase; city keeps Anthem plan

Dellwood’s council voted to approve an insurance renewal that carries a 19% gross annual increase, accepting the presenter’s recommendation to remain with the city’s current Anthem plan effective March 1.

"It is a large increase this year," the presenter said, noting marketwide pressure and that multiple carriers declined to offer quotes because of claims experience and underwriting. The presenter added, "These costs are getting passed on to consumers," and explained that modest deductible changes would yield only small monthly savings for employees.

City Administrator Terry Wilson invited the broker to present alternatives and confirmed the city solicited quotes from five carriers (Medica, Aetna, Anthem, UnitedHealthcare and others); the presentation said all declined to quote viable alternatives. The brief analysis offered two deductible-change scenarios and estimated per-pay-period cost increases for employees: approximately $12 per paycheck for an employee-only plan, $25 for employee-plus-spouse, $23 for employee-plus-children and $37 for a family plan if the city does not change contribution levels.

A motion to accept the recommendation was made by Alderwoman Johnson and seconded by Alderwoman Williams. The council took a roll-call vote with the named members answering in the affirmative and the chair declaring the motion passed.

The action shifts the city’s benefit contract as presented; council members did not adopt alternative plan changes at the meeting. The insurer and renewal terms will take effect March 1 under the terms described to the council.