The Kenai City Council met on Wednesday, November 1st to authorize an Employee Health Care and Basic Life Insurance.
If this resolution were to be adopted, it would be effective starting on January 1st, 2024.
According to City Manager Terry Eubank, when the city budgeted for the 2024 fiscal year, it included a projected 8.5% increase.
The city was offered different health insurances to work with, Premera and Mona.
“The rate increase that we were proposed by Premera originally was 18 and a half percent. We did solicit we did receive a second quote from a competitor a competitor Mota. And premier did then reduce their initial quote from 18% to 8%,” said Eubank.
In the past year, employees were given two options, a $2,000 deductible plan and a $3,000 deductible plan. But now, the proposal would mean to only offer the $3,000 deductible plan, while leaving the net decibel for employees unchanged.
“The last key point is that we are recommending a switch in the provider for our life insurance for employees and the ancillary coverages the optional coverages and employees are able to purchase it there at their discretion. We’re switching from to Lincoln Financial,” said Eubank.
Councilmember Alex Douthit did voice some concerns over the increase for health insurance.
“We’re definitely gonna have to look at, you know, and budget, where increases might have to come if we keep seeing a 10% increase, or more each year, it’s going to be a sizable increase to our cost of health insurance in the next five to 10 years.”
Human Resources Director Stephanie Randall said that the 2024 healthcare costs are expected to increase nationwide, so the ability to keep the costs around the same percentage is very good.
“I know one of the things that we’re talking about in the future is moving to a qualifying high deductible health plan that would have an HSA might be able to continue to move our premiums or keep our premiums low.”
After an unanimous vote, the resolution was enacted.