Weirton City Council Reviews Insurance Plans with Selective 17.8% Health Premium Increase

The City of Weirton is currently reviewing and recommending new insurance plans for its eligible employees, covering health, vision, dental, and life insurance. During a recent Finance Committee meeting, members proposed city employee health insurance through Highmark Blue Cross/Blue Shield and Pan American Accident and Health, which includes a Gap plan through Pan American. The health insurance plan marks a 17.8 percent premium increase compared to the previous year, the smallest increase among proposals obtained after soliciting bids from over six insurance providers. Many insurers either proposed premiums that increased more than 50 percent or declined to submit bids, narrowing options to Highmark and Aetna. The city selected Highmark's revised proposal to manage costs effectively while maintaining coverage. Vision insurance coverage will continue with Vision Benefits of America at unchanged rates, and life insurance will continue through American United Life Insurance Co. without rate increases. Dental insurance, also provided through Highmark Blue Edge, will see a 10 percent rate increase, with employees responsible for half the premium costs. City officials, including City Manager Mike Adams and insurance consultant Nathan Mazur of USI Insurance Services, emphasized the difficulty in securing favorable insurance quotes due to market volatility and industry challenges. Factors contributing to the challenges include ongoing political discussions over healthcare policy at both state and national levels, consolidation among healthcare providers and facilities, and increased healthcare demand following the COVID-19 pandemic. City leaders plan to present these insurance proposals for official approval at the upcoming city council meeting. The measures reflect broader trends in municipal public sector insurance procurement, highlighting cost containment efforts amid rising healthcare premiums and shifting healthcare market dynamics. The selection strategy shows an emphasis on balancing premium increases with comprehensive coverage for employees. This case exemplifies the challenges public entities face in navigating the insurance marketplace amid economic and regulatory pressures. Overall, the City of Weirton's insurance plan update underscores the importance of strategic insurance sourcing, negotiation, and evaluation of multiple provider bids to manage public sector employee benefits effectively. The upcoming council vote will determine the final selection of insurance carriers and plan structures for the coming year, impacting municipal budget planning and employee benefits administration.