City healthcare rates to rise in 2012

Finance Director, Kris Newton explains the raise in rates to city commissioners Tuesday / Ashley Knight

City employees will see a rate increase this year in their healthcare.

Rates will increase by about 8.9%, which is a little more than the normal 4% annual increase, but still well under the national rate of 10%.

Part of the increase is due to the fact that the wellness clinic, for a number of reasons, didn't open on schedule at the beginning of the year.

"But that year of not having it when we had built in those proposed savings has cost us a little bit, so we have to raise rates to make up for that deficit," says Kris Newton, Finance Director for the city of Albany.

The city is self-insured and pays about a million a month in claims.

They hope the clinic will decrease healthcare costs.