Jackson seeks alternatives to health insurance plan for city employees

The cost of providing health insurance to Jackson city employees could increase more than 20% next year if the city renews its existing health care plan.

The potential rate increase is due, in part, to several large medical claims filed by municipal employees and their dependents over the past year. Those claims reportedly caused United Healthcare, the city's health insurance provider, to lose money on its health insurance plan with the City of Jackson.

At their study session Monday night, members of the Jackson Board of Aldermen met with Todd Obergoenner of Swinford & Associates, the city's insurance broker, to consider alternatives to a premium increase of more than $300,000 in 2021, from nearly $1.5 million to more than $1.8 million.

One option, Obergoenner said, would be to increase deductibles and out-of-pocket maximums. However, doing so would still result in an 11% cost increase to the city.

Other options, he said, could involve health plans offered by Saint Francis Healthcare System or SoutheastHEALTH. By contracting through one of the hospital plans, Obergoenner said it might be possible to keep deductible and out-of-pocket costs either the same or close to what they are now.

Jackson city administrator Jim Roach said he expects to have additional information and could make a recommendation to the aldermen at their next meeting Nov. 2.

Among other items on their study session agenda Monday night, the aldermen:

• Heard an engineering update on the proposed replacement of low-water crossings along Hubble Creek at Mary Street and Hubble Ford adjacent to Jackson City Park.
• Received a presentation from Kevin Cantwell, president of Big River Telephone, about the company's fiber-optic cable installation project over the next 12 months that will involve usage of the city's utility poles.
• Discussed a proposed road closure and detour plan to accommodate a water utility improvement plan on Old Cape Road.

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