The Kenai City Council adopted a resolution that authorizes contracts for employee healthcare and other benefits effective July 1, 2022. As part of a comprehensive employee benefit package and pursuant to city municipal code, the city of Kenai provides group medical, dental, vision, life, and supplemental life insurance to its employees.
The city’s current provider for group medical, dental and vision is PREMERA Blue Cross Blue Shield of Alaska, and UNUM for both life and supplemental life insurance. PREMERA provided a renewal quote for continuing group medical and vision and dental coverage at a premium increase of 4%.
Finance Director Terry Eubank tells the City Council:
“This allows the administration to renew our insurance coverage for employees with PREMERA Blue Cross. Renewal quote from PREMERA Blue Cross came in at a 4% increase over FY22 rates, which is still significant, but I will tell you it’s one of the better renewals that we’ve received in my tenure here at the city. It is for a one-year renewal. It does allow us to terminate early if we chose to. I’m actively working with the city’s HR Director to look at some structural changes that would potentially become effective January 1, 2023. That’s an important alignment with some tax situations and some other types of vehicles that we’d like to take advantage of. This is one of the better renewals that we’ve seen. We’ve been averaging around 10% renewal year over year. 4% was welcome.”
The renewal includes changes to the employee census and will result in an increase in Employee Health Care Fund reserves of $107,419 from FY22. The City’s share of the total cost of the health plan, including broker fees, HRA administration fees, and wellness program costs and fees, is estimated at $3,046,664. The employee cost share will increase by 1%, from 12% to 13%, generating an estimated $456,576 in employee health plan contributions.
Additionally, there is no change to the basic life and Accidental Death and Dismemberment insurance coverage, which is paid in full by the City.
