Paducah city employees will see increase in health insurance costs for 2026

Paducah city employees will see an increase in health insurance costs next year for the first time in 13 years.

During Tuesday night's special called meeting, commissioners approved several measures in regards to health insurance for city employees. 

Health insurance premiums will increase while vision and dental costs will remain the same.  

For example, individual employees on the investor plan who do not participate in the wellness program will see a $5.25 increase per pay period in their health insurance costs.

For those on the investor plan’s family insurance without wellness program participation, the increase will be $39.00 per pay period.

To comply with Internal Revenue Service minimums, there is a change in the deductible for individuals on the investor plan. The increase is from $3300 to $3400.

Benefits advisor DJ Story explained several factors are contributing to rising health insurance costs nationwide, including labor shortages at medical facilities, price inflation, high-cost medications, and rising chronic and mental health claims.