Health Insurance Rates rise for city employee

The Daily Sentinel



Published August 23, 2005



Health insurance rates are on the increase for Scottsboro city employees.



Carol Munster, a representative of the city’s health insurance carrier, Blue Cross and Blue Shield of Alabama, told the Scottsboro City Council during a recent meeting that rates for the 2005-06 fiscal year would increase by 22 percent. Premiums have risen, on average, 15-30 percent for most groups insured by the company this year.



The city pays 100 percent of the premium for employee coverage and an equivalent amount toward those who select family coverage. Council president Harold Brookshire said it would cost the city approximately $200,000 “to maintain what we have.”



Munster said BCBS had gone in the hole on providing coverage to Scottsboro over the past three years. She said the company lost $70,000 in 2002-03, $290,000 in 2003-04 and it projects a loss of $485,000 in the current fiscal year which ends in September.



Claims frequency and severity is factored into the premium charged. The city’s group has had one employee with claims during the current fiscal year in excess of $100,000.



Munster said education of employees is a big factor in minimizing rate increases. She said each member must “take care, wear seatbelts, stop smoking and start moving.” She also suggested employees take advantage of the BCBS website, that the city consider providing incentives for employees to lead healthy lifestyles and gradually increase co-pays and deductibles.