Fewer Large Claims Leads To Better Than Expected Health Insurance Rates
A drop in high health insurance claims by West U. employees contributed to lower than expected health insurance costs for 2009-2010. On Monday night, council approved a contract for both medical and dental insurance with Aetna insurance. The city previously provided medical insurance through United Healthcare and dental insurance through Guardian.
“We have definitely entered a stage where some of the insurance companies decided we cleaned up,” said Bob Treacy, a consultant for the city hired a couple of years ago as health insurance costs rose by as much as 25 percent due to high claim rates. “We are starting to see our rates come down across the board and hopefully that can continue.”
The city budgeted for a 14 percent increase in insurance costs, but the contract with Aetna reflects only a 5 percent increase. Council approved $1,400,000 for the contract, which includes a lower cost HMO and an option for employees to “buy up” to a higher cost PPO option.
“United Healthcare still had the old baggage,” said Treacy. “The new carrier said ‘hey, that’s not out loss.’”