City Reviews Health Plans as Aetna Offers 20% Premium Decrease Compared to UnitedHealthcare

During the Leavenworth City Commission meeting on August 19, 2025, significant discussions centered around the city’s employee health insurance options, particularly the potential transition from UnitedHealthcare to Aetna. The city has been with UnitedHealthcare for two decades, but recent evaluations have prompted a reassessment of their health plan offerings.

The city’s current health insurance situation has been influenced by rising costs and the need for budgetary adjustments. UnitedHealthcare initially proposed an 8.1% decrease in premiums, a notable shift given the previous trend of increasing costs. In contrast, the state employee health plan, which the city considered joining, has seen an overall increase of approximately 8% over the past two years. This comparison highlights the competitive nature of the health insurance market and the potential for cost savings.

The city’s broker has been actively seeking bids from other insurance providers, resulting in proposals from Cigna and Aetna. While Cigna's rates were similar to UnitedHealthcare's, Aetna offered a compelling 20% decrease in premiums, with coverage options closely mirroring the current plan. This potential savings has led the commission to engage in discussions with UnitedHealthcare to see if they can match Aetna's offer.

The implications of these discussions are significant for city employees. If the city transitions to Aetna, employees could see reduced premiums and potentially receive pay raises of 2% to 2.5%. This would not only alleviate some financial burdens but also enhance employee satisfaction and retention.

Additionally, the meeting addressed the importance of employee engagement in managing health care costs. The commission emphasized the need for better communication regarding health care utilization, encouraging employees to use urgent care services instead of emergency rooms and to consider generic medications.

As the city awaits further responses from UnitedHealthcare and potentially Blue Cross Blue Shield, the commission remains focused on ensuring that any changes to health insurance plans are beneficial for both the city’s budget and its employees. The outcome of these discussions will likely shape the city’s financial landscape and employee welfare in the coming years.