Health insurance premiums are skyrocketing for Allen Community College employees for the second consecutive year.
College trustees were told Tuesday the college’s plan faces a 35.1% increase for the upcoming year. Coupled with a 23.4% hike for 2024-25, it means insurance premiums will have risen a 58.5% over the past two years.
Human resources director Karen Gillespie said a higher number of claims prompted the dramatic hikes.
“Last year was kind of a start, and it continued to rise,” said Gillespie, who was cautiously optimistic that prices will stabilize.
“There’s not a ton you can do to manage it,” she said, aside from promoting wellness among the enrollees.
A benefits committee met Monday with a Blue Cross and Blue Shield of Kansas representative, and have spoken with staffers to explore their options.
Regardless of what’s chosen, the premiums will exceed the $650 monthly contribution the college pays for single-member plans, and $750 for family plans.
Employees will pay those excess costs, Gillespie said, but will likely be brought up as part of the next negotiated agreement between certified employees and the college.
Trustee Becky Nilges asked if ACC had considered joining a consortium with other institutions, giving the larger group more purchasing power, and potentially lower premiums.
The topic has been broached, Gillespie said, but it does have its drawbacks.
“You don’t have control over your plan design and differences,” she said.
At $500, Allen employees enjoy lower deductibles than what many plans offer.
There are options to increase that deductible in order to slightly curb the premium hike.
Gillespie said the benefits committee will meet early next week to decide on which plan to recommend to the college president’s cabinet, and subsequently to the Board of Trustees, for final approval, at their Aug. 12 meeting.
The health insurance premiums also weighed heavily on trustees’ minds as they discussed the 2025-26 budget.
The budget, which is still being finalized, is supported by an ad valorem tax levy to be determined by the board.
