The Kenai City Council adopted a resolution authorizing a contract for employee health care that will take effect January 1, 2023.
The City’s current provider for group medical, dental and vision is PREMERA Blue Cross Blue Shield of Alaska and have executed or renewed a contract with the same providers.
Kenai City Manager Paul Ostrander explained;
“The objective here was to actually get our insurance on a calendar year basis which accomplishes a couple for us. We have previously been on a fiscal year basis and it makes it difficult for the administration of the insurance but, having on a calendar year also opens it for in the future for possibility of having different types of programs that we can’t currently offer when were on a fiscal year basis such as a healthcare savings account.”
The proposal adopted included a ten percent reduction in the cost to the City of Kenai according to Ostrander;
“Premera has come to us with a proposal for a ten percent reduction in the cost to the city, which in the six years that I’ve been here we have never seen a reduction in a renewal. And the reason why this reduction happened, I can say safely is that we had a competitive insurer come in and offer to provide health insurance at a twenty percent reduction. So, once Premera realized someone was coming in a sharpening there pencil providing us a twenty percent reduction, Premera came back and said we’ll give you a ten percent.”
Employees of the city, will be required to reapply for health insurance in the new year.
The City considered alternative quotes from other providers, however PREMERA Blue Cross Blue Shield of Alaska offered the most effective plan that was the most cost effective for the City of Kenai.
