COLUMBUS, Ind. — Columbus is budgeting for higher employee health care costs in 2021 and will be passing some of that cost on to its employees.
The city’s 2021 budget includes a $350,000 increase in the cost insurance benefits funding due to rising health care costs. The city council passed the budget on its first reading on Oct. 6 with second reading set for Oct. 20.
Health insurance premiums for city employees will increase by 6.2%, according to calculations provided by Johnson and Associates, a benefits consulting firm advising the city on insurance matters.
“To maintain proper funding, Johnson and Associates has recommended a 6.2% increase, and so that’s what we’ve budgeted for on the city side, as well as for employees on their share of the premiums,” City Finance Director Jamie Brinegar said.
The increase is less about the COVID-19 pandemic and more part of a long-term trend; during the past 10 to 15 years, health care costs have increased “almost exponentially,” he said.
“We’re just covering that trend on our end to make sure we have sufficient funds within our health insurance trust fund to cover any health care costs as part of our plan,” he said.
For more on this story, see Wednesday’s Republic.
