Politics & Government

City Could See Six-Figure Savings From Insurance Switch

The city of Oak Creek is changing its medical insurance plan network and could see large savings as a result.

A change in the city of Oak Creek's medical insurance plan network could save the city hundreds of thousands of dollars, said City Administrator Gerald Peterson said.

At its Tuesday meeting, the council approved changing the city's medical insurance plan network from UnitedHealthcare Options PPO to Choice Plus. Peterson said if the city was in Choice Plus in 2010 and 2011, network discounts would have saved $646,019 and $748,389, respectively.

City officials recommended the move following a review that showed a number of areas where its insurance plan could be amended.

Find out what's happening in Oak Creekwith free, real-time updates from Patch.

Over the last eight years, the cost to provide health insurance to employees and retirees has skyrocketed by $3.5 million, far outpacing Oak Creek's revenue and depleting the city's reserves, according to a report to council members. That mirrors trends seen in local governments throughout the country, Peterson said.

Officials identified Choice Plus as a plan that offers close to the same coverage but with steeper discounts.

Find out what's happening in Oak Creekwith free, real-time updates from Patch.

Everyone on the city's plan would be switched to the new network, but they shouldn't notice much of a difference, Peterson said; the new network plan has a 95 percent overlap with the city's current medical providers.

Oak Creek Common Council members praised the change, saying it's an example of finding efficiencies to save money.

The change takes effect July 1.


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here