By Raychael Moseley / Managing Editor

Marshall Municipal Utilities will switch its employee health insurance provider to UnitedHealthcare beginning Jan. 1, 2027, following approval from the Board of Public Works at its Nov. 10 meeting.

The decision follows discussions during the Oct. 28 board meeting about rising insurance costs and alternative coverage options for employees.

People, Risk and Outreach Director Megan Baldridge previously reported that Blue Cross and Blue Shield of Kansas City proposed a 38.9% premium increase for 2027, exceeding MMU’s budgeted 15% increase.

MMU contacted five insurance carriers in search of more affordable coverage. As of the Oct. 28 meeting, four had responded, with three declining to provide quotes. UnitedHealthcare submitted a competing proposal, which MMU shared with Blue KC for reconsideration of its renewal offer.

During the Nov. 10 meeting, Baldridge said Blue KC reduced its proposed increase to 32.9% after reviewing UnitedHealthcare’s proposal.

UnitedHealthcare remained the more affordable option, with projected annual premium savings of $381,971 compared with Blue KC’s revised renewal offer.

“At the end of the day, there’s over $381,000 in premium savings for MMU,” Baldridge said.

Under UnitedHealthcare, MMU’s annual premium costs are expected to increase by approximately 2.45%, compared with the 32.9% increase proposed by Blue KC.

Despite the savings, Baldridge acknowledged potential challenges for employees transitioning to the new provider.

“We’ve just not seen quite as good user satisfaction with United Healthcare,” Baldridge said.

She said employees may encounter additional prior authorization requirements and will need to adjust to different provider networks and prescription drug coverage.

“At this point in time, that’s definitely, I think, the cost savings outweigh that downside,” Baldridge said.

The approved package includes four medical plan options, with employee-only coverage under the base plan continuing at no payroll premium cost.

MMU will also maintain its current health savings account contributions of $36 every two weeks for individual coverage and $63 for dependent coverage.

General Manager Jeff Bergstrom expressed support for the decision and recognized the work involved in reviewing insurance proposals.

“I think historically we’ve done a really good job of keeping costs under control,” Bergstrom said.

The board also approved renewing its insurance package with MetLife for dental, vision, disability and life coverage, with an annual cost increase of approximately $4,240.

The UnitedHealthcare coverage and MetLife renewal will take effect Jan. 1, 2027.