Patterson council hears of big insurance rate hike

PATTERSON — Louisiana residents are seeing steep increases in their insurance costs. And so are local governments.
The Patterson City Council on Tuesday got a heads-up about a 12.8% increase in premiums required to provide health insurance for city government employees.
Also Tuesday, the council voted to seek a loan through a program that might provide the city’s match for nearly $7.4 million in state capital outlay funding for water and sewer improvements.
Blue Cross Blue Shield of Louisiana has notified Patterson that its premiums will go up 12.8% for the next year, Chief Financial Officer Reginal Weary told the council on Tuesday.
That follows last year’s 14.2% increase, Weary said.
The city government pays 75% of the cost of health insurance for long-serving employees. For newer employees, the city pays for 75% of individual insurance and 50% for families.
Weary suggested that the council might want to explore options such as higher co-pays or high-deductible coverage with health savings accounts.
Mayor Rodney Grogan noted that its broker for property coverage shops for the best rates from multiple companies.
“I think our carrier should be fighting for us,” Grogan said.
The council took no action on employee health insurance at Tuesday’s meeting.
The St. Mary Parish School Board last month voted to renew Blue Cross Blue Shield coverage for employees with a 16% increase in premiums.
Infrastructure loan
The council voted for a resolution authorizing an application for a loan under the Drinking Water Revolving Loan Fund, a state-federal program designed to support improvements in local water systems.
The state capital budget for this year awarded $5 million to Patterson for upgrades in its new water plant sought by the Louisiana Department of Health. The state also awarded Patterson about $2.4 million for upgrades in nine sewer system pump stations.
But the money requires a match from the city of 25%, which would total $1.25 million for the water system funding.
The revolving fund offers loans at 2.45% interest for up to 30 years, and 30% of the principal repayment up to $200,000 can be forgiven, according to the program’s website.
The program’s Facebook page reports loans of $6 million for the Ward 2 Water District in Livingston Parish, $4.24 million for West Feliciana Parish and $3.5 million for the Catahoula Parish village of Harrisonburg, all since March.
Also Tuesday:
—The council approved the appointment of Tempest Jackson to the Patterson Housing Authority board. Jackson will replace LaToya Darnell, who resigned.
—Patterson’s Morey Park will be the starting point for the Puttin’ on the Pink walk and run beginning at 4 p.m. Saturday.
The event, a project of Roots and Ribbons, will raise money to support breast cancer patients and survivors in the local area.
—The Patterson Volunteer Fire Department will have an open house 10 a.m.-1 p.m. Saturday. The event will feature kitchen fire and extrication demonstrations, food and drink, and drawings for giveaways.