Iowa Executive Council approves 6.7% rise in state insurance costs

DES MOINES — The Iowa Executive Council voted 4-0 Monday to approve a two-year extension of state group insurance rates that would boost the state’s share for health premiums by 6.7 percent for next year, effective Jan. 1.

The new rate schedule, with minor design changes for health, dental and life insurance coverage provided by Wellmark Blue Cross-Blue Shield, would raise the overall cost of next year’s contract to $484.6 million to cover 31,748 state employees through Dec. 31, with the state’s estimated share increasing to $463.8 million and employees paying nearly $20.8 million.

At present, the state pays $447.5 million for its employees’ group insurance program, while the 32,427 covered participants pay nearly $15.1 million of the overall $462.6 million contract.

Janet Phipps, director of the Iowa Department of Administrative Services, which negotiated the proposed contract extension with Wellmark officials, said the state has experienced an increase in health insurance claims this year but not the significant cost increases that occurred last year, which led to a spike in current-year rates.

BY ROD BOSHART, Cedar Rapids Gazette, September 28, 2015. rod.boshart@thegazette.com.