Pratt City keeps Blue Cross coverage and Freedom Claims secondary plan, funds remain flat

The Pratt City Commission voted to continue both the Blue Cross Blue Shield primary plan and the Freedom Claims Management secondary umbrella (MERP) arrangement and to keep funding at current levels for the coming plan year.

Mike Gallagher of Midwest Benefit Solutions (speaker 16) briefed commissioners on the program's financial and member impacts, saying the city paid roughly $750,000 to Blue Cross this plan year and that secondary claims through Freedom have totaled about $125,000 so far. Gallagher said the combined approach had reduced net spend compared with prior plan designs and had significantly reduced employee out-of-pocket exposure for large claims.

Gallagher recommended keeping the current structure and continuing flat funding so the city can continue building reserves that could support a future move to self-insurance. "If you keep it flat, you start building up the reserves and then when you decide maybe to go to self-funding, you've already got a start on that," Gallagher said.

Commissioners asked about administrative burdens and provider billing; staff and Gallagher said employees have adapted while some local providers required education on billing two cards. After discussion, a motion to continue the existing plans and maintain funding was moved, seconded and approved by voice vote.

The commission directed staff to prepare required renewal paperwork and to return with final rates and any additional implementation items before the renewal deadline.