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Tonganoxie city officials anticipate insurance cost increases

By Shawn Linenberger - | Apr 22, 2020

The city could experience an increase in health costs, but the anticipated changes are expected to still fall in line with budget projections for 2021.

Assistant City Manager Dan Porter told the Council that the city recently received health insurance renewals from Blue Cross Blue Shield of Kansas, which runs from this July to the end of June 2021.

Based on rate calculations, the city could expect to pay nearly $4,000 more per month, which would be about a 12.7% increase per month or 6.33% more considered on an annual basis.

Porter also said that Delta Dental of Kansas rates for the new plan year in the same time frame is anticipated at $250 less each month. Blue Cross and Blue Shield would be $3,991 at the current projections.

Those numbers could fluctuate, but that roughly 6 percent increase still falls under the city’s budgeted 10 percent increase.

Donnelly said he had concerns about the increase rate, based on his past experience in evaluating those numbers and inquired about evaluating insurance needs and potentially shopping around for other insurance company plans.

Frese said he understood Donnelly’s concerns, but wanted to move forward given the current situation.

Council Member Jake Dale concurred, saying that tabling a decision wasn’t ideal with this year’s decision.

Porter and City Manager George Brajkovic said that process would usually start in January.

Frese asked Donnelly whether implementing his suggestions for 2021-22 would be acceptable.

“I think that would be appropriate,” Donnelly said. “I’d like to see the details on it.”

Council Member Rocky Himpel voted in favor of authorizing an insurance agreement with Blue Cross and Blue Shield of Kansas, but warned that the city also needed a long-term plan for how it proceeds with wage and salary increases in 10 years or even beyond.

Council Member Lisa Patterson asked that Donnelly’s and Himpel’s concerns be noted for when those budget processes would start in January.