The Hays City Commission voted Tuesday, November 26th to change insurance providers for city employees. Previously, Hays had offered insurance through Blue Cross Blue Shield (BCBS). Renewing with BCBS would have cost the city 23% more for the same coverage. According to materials presented at the meeting, the fee increase was a result of increased claims in 2012 and 2013.
Recently, the City of Hays has offered two options for employee health insurance: a high-deductible health plan and a traditional plan. The high deductible health plan was offered as the no cost option with the City putting money into employees’ Health Savings Accounts. The traditional plan could be elected by employees, who were charged a buy-up fee.
Faced with the proposed increase (which would have pushed insurance costs over budget) city staff sought bids for insurance coverage and heard back from two providers who had tailored their bids specifically to Hays based on past utilization, number of employees and location: BCBS and Coventry Health Care.
Through Coventry, the city is able to offer the following insurance coverage plan: a $1,500 deductible, $1,000 co-insurance paid at 50/50, and a max out of pocket of $2,500 in their Wesley Preferred PPO network. This is a decrease of 0.77% from 2013.
All area clinics, doctors and hospitals in the area accept Coventry Health Care as an insurance provider with the exception of three chiropractors.
Mayor Kent Steward brought up a couple items that had been mentioned in the previous week’s work session:
The city will change to Coventry Health Care for next year, which will allow the city to continue to provide free insurance for employees and their families while remaining under budget.
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