Health insurance costs for the City of Cortland and its employees are going up next year, the city will see an 8% increase in health insurance premiums.
City Administrator Mack Cook informing the City Council last night that the city’s share of expenses in connection with the Tompkins County Healthcare Consortium is increasing.
Cook says half of the increase can be attributed the rising cost of prescription drugs and medical expenses.
The city joined the Tompkins Healthcare Consortium as a way to slow down rising health insurance expenses, the move save the city a million dollars last year.
The city’s total health insurance costs will go from $3.5 million this year to $3.8 million in 2014, that’s $280 thousand dollar increase. Employees will absorb $45 thousand dollars of that cost through higher monthly premiums, the cost of single coverage will increase to $739 a month, family coverage will increase to $1600 a month.
Retiree health costs will remain flat, retirees account for the largest share of the city’s healthcare expenses.