PADUCAH — The city has adopted a new health insurance plan for 2026. This will increase employee rates by $5.25 per pay period and $39 for family plans. Human Resources Director Stefanie Wilcox emphasized that most city workers are enrolled in this investor plan.
Wilcox noted that despite the rate hike, coverage will remain the same. “We still include preventative care and emphasize wellness,” she mentioned. Interestingly, employees who engage in wellness activities often find their premiums waived.
The last adjustment to health insurance rates was in 2013. However, rising healthcare costs made this update necessary. According to Benefits Advisor DJ Story, such costs have surged by 8 to 9 percent over the past year, driven by various factors.
One key issue is the labor shortage within hospitals, which impacts costs significantly. “The price of medications, especially costly GLP-1s and gene therapy drugs, is also pushing up expenses nationwide,” Story explained.
City Commissioner Dujuan Thomas expressed support for the new plan. He stated that this was the best action given the circumstances. “We did our homework,” he said. “It’s better to make changes now rather than face a massive overhaul later.”
Furthermore, the city operates on a self-insured model, meaning that employee premiums directly fund medical claims. Wilcox reported a steep rise in claims costs, estimating payouts will jump from around $2.2 million to $2.7 million this year. To comply with updated IRS requirements, the deductible will also increase from $3,330 to $3,400.
While no one wants increased costs, Wilcox expressed confidence in their management of the health plan. “This is essential for us to continue providing these benefits,” she concluded.
As healthcare costs continue to rise, it’s essential to stay informed. A recent survey by the Kaiser Family Foundation revealed that many companies are grappling with similar issues, showcasing a nationwide trend. Understanding these challenges can help employees make more informed decisions about their health coverage.
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