Huron keeps saving big bucks on new health insurance deal

HURON — Huron officials signed a new health insurance deal, ensuring their workers remain in tip-top shape without harming the bank accounts of residents’ citywide.

During a recent public meeting, city council locked in a new two-year agreement for medical-related expenses, good for 2019 and 2020, equaling $609,000 per year.

As in recent times, the annual cost-sharing agreement breaks down with:

• Residents picking up 92 percent of the total amount, equating to $560,000

• City workers covering the remaining 8 percent, or $49,000

It’s a steep decrease from just a few years ago, when city health insurance costs totaled a bit more than $900,000 in 2015 and $1.07 million in 2016.

Since 2017, the plan hasn’t reached those thresholds because of “certain contingencies,” Huron city manager Andy White said. Among the reasons: Employees experience more out-of-pocket costs, such as absorbing higher deductibles.

“We’ve changed from a self-funded to a fully funded plan,” White said. “As a result of the claims experience and the market forces that affect the city, we were forced to reanalyze our health care program to try to mitigate risks in service delivery and in other areas.”

Each employee on the plan pays $65 per month. A $10 cost is tacked on for each spouse and dependent. For instance, a city employee who’s married with two children must pay $95 a month.

The plan is limited to just health insurance and prescription medications. Other services, such as vision and dental, are an additional cost to employees.

Making sense of the dollars and cents

Breaking down Huron’s overall health insurance costs in recent years:

• 2020: $609,000

• 2019: $609,000

• 2018: $557,000

• 2017: $530,000

• 2016: $1.07 million

• 2015: $900,000

Note: Beginning in 2017, Huron officials switched plans, contributing to a sharp decline in costs. Since 2017, residents have paid 92 percent of the total amount. The other 8 percent comes from city residents.

Source: Huron city manager’s office

Reach reporter Andy Ouriel at [email protected] and follow him on Twitter @AndyOuriel.

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