Government : Local governments to see double-digit increase in health care premium

The Vinton City Council, Benton County Supervisors and Vinton-Shellsubrg School Board will all be discussing health care premiums of more than 10 percent as they plan their budgets for the future. Insurance agent Bob Moen told the Vinton City Council last Thursday that the city employee’s health insurance small group plan will see premium increase of 15.25 percent. This compares to a 16.75 percent increase last year and a 12 percent decrease the year before that, said City Coordinator Andy Lent. Moen told the council that the main reason for the increase in premiums was an increase in the amount of claims filed by members of the group in the past year. Two years ago, Moen had brought the surprising news of a rate decrease, saying that the low number of claims then was the reason for the decrease. Also, he told them, the industry standard for increase this year has been around 13 percent. Lent said how the increase will affect employees’ paychecks or the city budget depends on the kinds of plan each employee has. “Our employees have many different plans,” he said. “We have to figure it out for each department.” V-S Schools The Vinton-Shellsburg School Board also faces double digit increases, from 11.5 to 13 percent, said Board Secretary Larry Stroschein. The district, said Stroschein, would likely share the increased costs with its employees. Currently, he said, the district pays $550 per teacher, enough to cover the average cost of a plan for a single employee. The premium hike would mean another $64 in premiums, said Stroschein. The district is currently in negotiations with the Vinton-Shellsburg Education Association; Stroschein said he believes that the district will probably agree to cover part of that increased cost during negotiations. “We will have it nailed down before we start the next school year,” said Stroschein. The school board recently approved its budget, factoring in that increase. Benton County Brenda Sutton of the Benton County Auditor’s Office said the county will see an increase of approximately 11 percent. How that will affect the county budget depends on the kind of plan each employee has, she said. The county will pay any increase in premiums; there will be no increase for the employees this year, said Sutton.