Employee health insurance premiums for McComb city workers increased by 30% with a new plan the city board adopted last week, but the increase could have been higher, selectmen learned.
The board voted 4-2 for a plan that costs $470.27 per employee per month.
The old cost was $346.95 per employee, but claims caused an increase, Scott Oakes of the Oakes & Johnston Agency told the board.
The new plan goes into effect in January.
Although still a big increase, City Administrator David Myers said the new plan will cost the city $122,000 less than it would have faced had it stayed with its current plan.
Deductibles are $5,000 and the maximum out-of-pocket is $8,700. The plan raised co-pays from $30 to $40, has a $100 drug prescription deductible, and Blue Cross Blue Shield will pay 70% of claims instead of 80%, as it had in the past.
“Each employee has a $100 drug deductible,” Oakes said. “Once they meet the drug deductible, it goes into co-pay.”
Selectmen Ronnie Brock, Donovan Hill, Devante Johnson and Shawn Williams supported the plan. Selectmen Ted Tullos and Michael Cameron opposed.
Myers said the city had budgeted for a10% rate increase.
Oakes said the large rate increases are rare.
“It may never happen again for another 10 years, but this year, they got a rate increase that was above what they had budgeted,” he said.
Oakes recommended the city either keep its current plan or make the changes it did. Tullos heard differently and opposed the change.
“The insurance company recommended what we’ve been doing for 11 ½ years,” he said after the meeting.
