North Vernon city employees to pay more for health insurance

North Vernon city employees will be paying a little more for their health insurance coverage next year. The city uses SIHO as its insurance carrier. Initially, SIHO quoted a premium increase of 7.1 percent over 2017 rates, says Shawn Gerkin, North Vernon clerk-treasurer. Ultimately Gerkin says he was able to negotiate an increase of 3.6 percent.

City officials say that equates to an annual increase of $240 per year for those on an “employee-only” plan, up to a $696 annual increase for employees on the “family” plan. Council members stress that employees won’t have to absorb the entire increase, as the city covers 75 percent of the premium costs. Gerkin says that equates to an actual out-of-pocket increase for employees of $2 to $6 per pay period. Councilwoman Connie Rayburn suggested that the city look into the possibility of the city absorbing the entire rate increase, without passing it on to the employees. Gerkin says that he will crunch the numbers to see if that would be financially feasible and the council is expected to discuss the possibility further at its next meeting on November 6th.

City officials are still waiting to hear from Anthem in regards to any potential rate increases for employee dental and vision insurance. They anticipate a premium increase, but to what extent is unknown. They hope to have that information by the next meeting as well.