(KTAB/KRBC) Texas – The City of Abilene could save taxpayers money by making changes to its insurance plan.
On Monday, July 23, the city council held a budget hearing workshop where the changes proposed were heard. These changed will later be considered for approval by city council members as part of the overall budget for the Fiscal Year 2020.
A big change to health insurance that we have not seen in the past years is that the City is changing medical providers.
When the City first changed to Aetna, our claim costs jumped 30%.
Changing medical provider from Aetna to Blue Cross Blue Shield is expected to reduce claim costs.
Council Member Shane Price assured that the health insurance rates will be staying the same with de addition of a new tier for employee spouse at 475 dollars a month. The employee family will be at 525 a month.
The reduction of deductibles is among the list of changes.
Presently there is an individual deductible of $4,000/$8,000 for family, that is going down to $3,000/$6,000.
The Prescription deductible, $500 just 2 years ago, would go down to $25 under the new proposed budget.
All these changes are in hopes that city employees can meet their deductible without having to go in debt in case of a medical incident.
Funding for some of these changes would come from $9.7 million dollars the City picked up from a lawsuit settlement with the TMLIRP (Texas Municipal League Intergovernmental Risk Pool).
There are $7 million in damage repairs, and some of that money is transferred to DCOA because they’re under their insurance policies, meaning there is some fund balance that will help create opportunities with the self-insurance fund.