The city of Decorah will pay an additional $61,000 for employee health insurance premiums in the upcoming year.
City Clerk Wanda Hemesath told the Decorah City Council Monday the 9.23 percent increase in premiums goes into effect Aug. 1. She said 4 percent of the increase is to comply with the national Affordable Care Act.
For the previous year, the cost of employee health insurance premiums totaled $666,000. For the insurance year starting Aug. 1, the cost will be $727,000. The city pays 95 percent of an employee’s single premium and 90 percent of an employee’s family premium.
Council member Tade Kerndt asked if the city ever solicits bids from other insurance companies. Group Services of Bettendorf is the city’s third party administrator and recently conducted a market analysis, according to Hemesath.
“They did go out to different providers and get prices for us. What it came down to, is we are better staying where we are,” Hemesath said.
Blue Cross/Blue Shield provides the city’s insurance. Hemesath said until this year, the city has experienced “nominal increases” in premiums. In addition, she said switching to another insurance provider would create health provider network problems for employees.