By COLE REIF
Great Bend Post
The City of Great Bend’s self-funded health insurance plan continues to be underfunded according to consulting company Gallagher. In response, the Great Bend City Council voted Monday to approve 2025 health insurance rates with a 9% increase to city and employee cost.
Mike Minton, with Gallagher, said the city’s reserve funds had more than $2 million in 2020. That number is now down to just over $1.3 million.
"One of the biggest things is the funding has not gone up with the trends that have happened over the last four years," sand Minton. "That's one piece."
A conservative figure from Gallagher suggested a 24% increase to rates, but eventually recommended a 12% jump. The health insurance committee came up with a plan to increase rates to 9% and use a Health Insurance Benefit Fund that was sitting untouched with a balance of $240,983 to get up to the 12% recommended.
A survey was also completed, with 56% participation from city employees, on determining if prescription expenses should be covered in the plan.
"A lot of members of the committee felt like most people figured out how to get their prescription drugs outside of the health plan," said Minton. "A lot of them are getting them a lot cheaper. Some are ordering them from Canada. Others are getting coupon cards. There are many different ways. We put together a list to help employees."
Blue Cross Blue Shield will serve as the third-party administrator for Great Bend. The last three years have seen the health insurance plan underfunded and thus reserves have been used.