City stops free insurance for spouses, children

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'If we don't make changes, it will mean $156,000 out of our budget.'

By James Roberts

Health insurance coverage will no longer be free to spouses and children of City employees.

Forced to cut back on costs, Campbellsville City Council members approved a new health insurance plan that passes more of the cost on to employees.

Speaking to Council members during Tuesday night's regular meeting, Kelly Harding of Reed Bros. Insurance said the goal was to keep the City's premium as close to the current amount of $995,041 as possible.

"If we don't make changes, it will mean $156,000 out of our budget," Mayor Brenda Allen said. "We can't do that."

The cost would rise, Harding said, because Humana paid out 8 percent more than the City paid in due to the fact that seven families were added to the coverage and that there were several claims of more than $25,000.

As a result, Humana raised its rates 15.8 percent. Anthem, Harding said, declined to provide a quote.

The best alternative, Harding said, would be to increase what employees pay when visiting the doctor or filling a prescription and charge for dependent coverage.

Under the current plan, there is no cost for coverage, but an employee must pay $250 before employee-only coverage kicks in. This is known as the gap. Under coverage that includes a spouse or child, the gap is $400. For family coverage, the gap is $500.

Under the new plan, the gap for employee-only coverage is $500. The gap for employee-plus-one coverage is $1,000 and the gap for employee-plus-two-or-more is $1,500.

In addition, employees pay for coverage of anything greater than employee-only coverage. For employee and spouse and employee and up to two children, the plan will cost $19.04 per pay period. For family coverage, the plan will cost $43.27.

As part of the new plan, spouses will only be eligible for the plan after they have signed up for insurance coverage through their own employers, if offered. This, Harding said, will save the City money because the spouses' insurance will cover most of their medical bills. The City's insurance would only pick up costs not covered by the other plan.

This option will only increase the City's premium $709.76 for a total cost of $995,750.76.

Harding provided the Council with five options, but all agreed that option four was the best plan overall.

Councilman David Nunery made a motion to approve the plan and Councilwoman Vangie Ford seconded his motion. The vote was unanimous. All members were present.