KCHA raises health insurance rates

GALESBURG — The Knox County Housing Authority Board of Commissioners agreed Tuesday to increase employee insurance costs next year. The board voted 5-0 to increase deductible costs from $250 to $1,100, but to also create a savings account for each employee. By making the changes, the board was able to save $30,393, spending $167,642 for coverage. The original plan with Blue Cross Blue Shield would have cost $198,035. The changes allowed the board to continue buying healthinsurance from Blue Cross Blue Shield.

Before the change, Knox County Housing Authority Executive Director Margie Hulick said the 28 KCHA employees were responsible for $1,250 per individual out of pocket per year, including co-pay and the deductible. “It cost us less per month because of the higher deductible,” Hulick said. “To offset the higher deductible, we set up a savings account for each employee.” Now, employees will be responsible for $2,000 per individual out of pocket, but will receive a $750 health savings account in his or her name. Each employee will receive $500 in the savings account for the remainder of this year. A health savings account allows employees to save money for future medical expenses. Money placed in the accounts can roll over into the next fiscal year. The new plan eliminates the co-pay, leaving employees responsible for all initial costs until the out-of-pocket limit is met.

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