City Considers Aetna and UnitedHealthcare for Employee Health Insurance Savings

The Leavenworth City Commission meeting on August 19, 2025, spotlighted a significant shift in the city's health insurance strategy, as officials explored options to reduce costs for employees and the city budget. After two decades with UnitedHealthcare, the city is considering a transition to the state employee health plan and evaluating bids from other providers, including Aetna and Cigna.

City officials revealed that UnitedHealthcare initially proposed an 8.1% decrease in premiums, but discussions with Aetna indicated a potential 20% reduction in costs while maintaining similar coverage. This shift comes as the city grapples with rising health care expenses, with the state plan showing an 8% increase over the past two years.

"We have approached UnitedHealthcare to see if they can match Aetna's offer," said a city representative, emphasizing the importance of competitive pricing in the current market. The city is also awaiting a response from Blue Cross Blue Shield, which could further influence their decision.

The implications of these discussions are significant. If the city opts for Aetna, it could lead to a reduced proposed mill levy increase from 2.376 to 1.142 mills, easing the financial burden on taxpayers. The commission is actively seeking to balance quality health care for employees with fiscal responsibility, underscoring the competitive nature of the insurance market.

As negotiations continue, city officials remain focused on ensuring that any changes do not compromise the quality of care for employees while striving for substantial savings. The outcome of these discussions will be pivotal for the city's budget and employee satisfaction in the coming years.