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City moves employee coverage into KMIT Blue Edge plan with modest rate increase for 2025
Summary
After reviewing bids, the council approved enrollment in the KMIT Blue Edge plan (Blue Cross Blue Shield underwritten) for 2025; staff said KMIT enrollment limits future annual increases and the change keeps employee premiums at current rates.
City staff presented multiple health-insurance bid options for plan year 2025 and recommended joining the KMIT Association Blue Edge plan underwritten by Blue Cross Blue Shield. The council voted to approve umbrella health insurance with Blue Cross Blue Shield as members of the KMIT Health Association Health Plan, using Freedom Claims as the third-party administrator; Councilmember Kirsten Bruce moved the measure and Councilmember Rebecca Van Der Wege seconded, with the minutes recording the motion as passing 8-0 by roll call vote.
Staff told the council that the options presented included: BCBS renewal at a 19.17% increase over 2024; KMIT Option 1 at 7.43% increase; KMIT Option 2 at 6.31% increase (plus a 2.21% partial-period increase from 12/1/24 to 12/31/24); and United Healthcare at a 37.41% increase. Staff recommended KMIT Blue Edge (6.31% increase for the 1/1/25 plan year). The minutes record that employee premium contributions will remain unchanged (Employee Only $95/month; Employee-Spouse $220/month; Employee-Child(ren) $192.50/month; Family $275/month) and employees retain access to a Flexible Spending Account (up to $3,200 pre-tax) and optional supplemental policies.
