Renewing with Moda would raise Homer employee benefits costs 7.9%, broker says

Renewing Homer's employee health coverage with Moda would add $196,836 a year to city benefits costs, raising them from about $2.49 million to $2.69 million, according to a 2027 health insurance renewal presentation) USI Insurance Services prepared for the Homer City Council's Monday worksession.

That is a 7.9% increase, and nearly all of it comes from medical coverage, which rises 8.3%.

USI's Brian Hardy and Christina Fantasia also laid out three Premera scenarios that would cost less than the city pays now. Scenario A, a standalone Premera plan, saves $92,678, or 3.7%. Scenario B pairs Premera with AMHT and saves $37,900, or 1.5%. It is a six-month renewal to July 1, 2027, with a 5% rate cap at the next renewal. Scenario C saves $32,830, or 1.3%.

Each Premera scenario raises some costs for the 64 employees on the city medical plan. Under scenarios A and B, deductibles rise from $1,000 individual and $2,000 family to $1,500 and $3,000. Out-of-pocket maximums rise from $4,500 and $9,000 to $5,000 and $10,000. Primary care copays become $40, up from $5 for the first three visits and $25 after that. Specialist copays go from $25 to $80, and emergency room copays from $100 to $150.

Scenario C keeps current deductibles and out-of-pocket maximums but raises copays for office visits, emergency room care and prescriptions.

The worksession agenda lists the presentation as a discussion topic. Medical, dental and flexible spending coverage renews Jan. 1, 2027. Vision and life and AD&D coverage renew July 1, 2027.