Members of the Iowa Executive Council are considering an approval that would allow for a two-year extension of state group insurance rates that would raise health premiums by 6.7 percent for 2016, according to The Gazette.
Here are five observations:
1.If members approve the extension, the contract with Wellmark Blue Cross-Blue Shield would be extended to provide health, dental and life insurance coverage for nearly 32,000 state employees through Dec. 31, 2018. There would be subsequent rate changes that would be negotiated on a yearly basis.
2. The proposal would be similar to the rates that large entities with comparable employees bases are experiencing in the healthcare market.
3. Iowa pays $447.5 million now for its employee group insurance program with 32,427 covered participants paying approximately $15.1 million of the total $462.6 million contract.
4. If the proposal was accepted, the estimate cost would increase to $484.6 million with Iowa’s estimated share rising to $463.8 million and employees paying approximately $20.8 million.
5. The state’s current contract consist of multiple plans for single and family insurance coverage with varying rates, copayments and deductibles for state-employee groups.