In 2024, the City of Dillingham’s health insurance costs will increase by almost 40%.
Robert Dillingham :Increase By Almost 40% Now
Health insurance costs have increased significantly in the City of Dillingham, rising by 37.17% over the initial 10% increase that the city had budgeted for.
At the end of the previous year, Heritage Select with Premera Blue Cross Blue Shield, the city’s previous medical insurance plan, was dissolved.
The Dillingham City Council unanimously decided to keep offering Premera Blue Cross Blue Shield coverage at their meeting in December. They will continue to provide employees with full coverage and their dependents with 90% coverage.
Anita Fuller, the finance director for Dillingham, stated during the meeting that a prompt decision was necessary because the city needed to give workers time to select open enrollment if they wished.
During the meeting, Fuller offered less expensive options, such as moving to Muda, another provider. Muda, she claimed, provided comparable coverage.
Insurance rates would have increased by about 19% as a result of the move, as opposed to 37.17% for Premera.
However, Fuller stated that there would be some employee disruptions as a result of the switch to Muda, and that some healthcare providers were not happy with Mode’s payment delays, according to the city’s insurance broker RISQ.
Rob Dillingham
Fuller also suggested ways to cut expenses for the city while maintaining its partnership with Premera Blue Cross Blue Shield, such as lowering the amount of benefits the city provides to its employees’ dependents.
If Dillingham decided to stick with Premera, Fuller added, the city’s insurance broker could keep negotiating for a cheaper price.
Councilman Kaleb Westfall stated that one of the draws for workers was the city’s extensive insurance program and that lowering the amount of coverage would only result in minor cost savings for the city.
Alderman Bert Luck Hurst concurred. The city is hiring right now for a number of positions.
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