Fenton committee recommends higher‑deductible health plan after insurer hikes

The Fenton committee voted April 9 to recommend a higher‑deductible employee health plan after brokers said the city faced steep premium increases.

June Evers of Daniel and Henry Company told the committee the city’s Anthem renewal initially came in at 31.14% and she negotiated that down to 28.52%. She presented alternatives that trade higher employee deductibles for lower premium increases, including an option that would raise the individual deductible to $3,500 and the family deductible to $7,000 and bring the increase to about 21.5%.

Nikki, a city staff member assisting with benefits, said the primary choice for the board was between plans that keep 100% coinsurance after deductible versus plans that drop to 80% coinsurance. “The suggestion was if you’re not wanting to do the renewal knowing it’s a 28.52, the suggestion was you look at the last two plans because they’re at the 100%,” she said.

Committee members expressed concern about the impact of higher deductibles on lower‑paid employees. One alderman said a $5,000 individual deductible “would be a bit of a hardship” for many city workers; another noted the board had budgeted for a 25% increase this year.

Alderman Hill moved to recommend Plan 17—the option with the $3,500 individual/$7,000 family deductibles and 100% coinsurance after the deductible—and Alderman Lang seconded. The committee approved the recommendation and staff said the final renewals will be adopted by ordinance at a subsequent board meeting; members were told they have time to reconsider before the April 30 deadline.

What’s next: The full board will consider the ordinance to adopt the selected benefits package. Employees will be notified of any changes before the June 1 effective date.