Greenville City Council, GUC approved recommended health, dental insurance increases

Health and dental insurance costs are increasing for GUC and city employees starting Jan. 1.

Greenville City Council and Greenville Utilities Board of Commissioners each voted for a 5 percent increase in health insurance and 3.7 percent increase in dental insurance during a joint meeting held Thursday.

Steve Graybill with Mercer, an insurance brokerage and consulting company, recommended the increases during a presentation on the joint insurance plan. It's the second year employee rate contributions have increased, Graybill said. Rates remained unchanged in the three prior years.

The program's projected 2024 net cost is $19.6 million. The current year's net cost was expected to be $17.3 million but new forecasts place it at $18.7 million, Graybill said.

The 5 percent increase will produce a monthly maximum increase of $21 for employees with family insurance who earn more than $61,000, he said. For employees earning on the lower end, the monthly maximum increase for family insurance is $14, he said.

Dental costs are running higher than projected but are expected to level off as people reestablish dental cleaning routines and treatments, Graybill said. A 3.7 percent increase in dental rates and cost share is still needed.

Vision and employee assistance program costs remain unchanged.

The city and GUC also are facing an 8 percent increase in stop-loss, which is when an insurance company starts paying 100 percent of a client's medical costs. Graybill said the 2024 stop-loss amount is $325,000.

The city/GUC insurance program is self-funded and Cigna manages it. Graybill said there will be no increase in administration fees in 2024.

The joint plan also will see significant improvements in pharmacy rebates, Graybill said. A rebate of $1.1 million is being added to the $1.2 million the city and GUC already receive. Cigna also is giving $35,000 in wellness credits to promote wellness among employees, he said.

The city and GUC offer the same benefits and health insurance because GUC is an entity owned by the citizens of Greenville and must have the City Council's approval for certain financial and land transactions.

Graybill said Cigna also is offering Pathwell Bone and Joint in the coming year. It's a program where the city and GUC only pay when an employee uses it.

It helps employees with spine, hip, knee or shoulder pain get the right treatment in an effort to reduce unnecessary surgeries.

"If you think about back surgery, 50 percent of the time it works, the other 50 percent of the time you see no functional improvement and no real relief in pain," Graybill said.