Conway’s city employee health insurance rates will increase by 18 percent, with this increase being split equally between the city’s and the employees’ portions of premiums. The change will take effect on Jan. 1.
City officials have been looking at options since the city’s current health insurance carrier, Blue Cross/Blue Shield’s Health Advantage, made it known that if nothing was done city insurance premiums would increase by 28 percent.
In the decision made on Wednesday night at a special meeting, the Conway City Council voted 6-1 to approve what is essentially a two-part alteration to the current plan.
Under the current plan, a single-employee policy costs the employee $17.64 per month with the city paying the remaining $284.80 — about a 94/6-percent split.
Similarly, the current split of about 74/26 for an employee and family plan costs the employee $198.46 per month and the city $749 per month.
These rates will increase to $20.84 per month for workers under single-employee plans and $234.21 per month for workers covering their entire family, with the city’s cost rising to $336.10 and $883.80, respectively.
Workers will also pay more out-of-pocket costs in the form of increased deductibles and co-pay amounts.
Overall, the city’s cost increase in employee health insurance will be about $400,000. This includes cost increases in the general fund of about $313,000, in the sanitation operating fund of about $61,000 and the street operating fund of about $25,000.
(Staff writer Joe Lamb can be reached by email at firstname.lastname@example.org or by phone at 505-1277. To comment on this and other stories in the Log Cabin, log on to www.thecabin.net. Send us your news at www.thecabin.net/submit)