As the cost of health insurance continues to rise, city employees of the City of Plant City have something to celebrate. Their monthly health insurance will be reduced by 9% — which could save some employees as much as $130 per month.
Best of all: It’s for the same insurance plans.
“It will be the same insurance company, same plans and same care at a lower cost,” Interim City Manager David Sollenberger said.
Employees receive health care benefits through United Healthcare and property and casualty insurance through Florida League of Cities. Although the league for many years has had health insurance options available to member cities, the plans were never competitive with those the city was able to acquire directly.
Until now.
“HR Director Sanders Bush became aware of this,” Sollenberger said. “We worked with them to save some money.”
The league instituted an Administrative Services Only agreement with United Healthcare and, over the past three years, has built a self-insured partnership of member cities. The partnership, which currently represents more than 3,500 participants, spreads the large-claim risks in a way that protects all members from exposure to higher premium costs.
Two weeks ago, the City Commission approved the recommendation to join the league’s health care program.
For the least expensive standard plan single rate, the savings is $45.96 per month. The most expensive HMO II family rate will decrease by $131.09 per month. The plans will still be through United Healthcare.
All participants will complete a new enrollment form during open enrollment and receive a new ID card. Any claims in progress will proceed as if nothing has happened.
“I imagine many employees will be pleased,” Sollenberger said. “Reduction is important to the employees.”
Contact Amber Jurgensen at ajurgensen@plantcityobserver.com.
