City employees in Wausau are set to see significant increases in their out-of-pocket healthcare costs next year, as two city committees green-lighted a new insurance plan for 2027 that raises deductibles by about 76%. This change comes alongside a smaller increase in premium costs.
The Human Resources and Finance committees approved the plan after a warning from a long-time city employee, who expressed concerns that this shift would negatively impact current workers and complicate hiring efforts. The proposal now awaits final approval from the Wausau City Council.
As per the new plan, deductibles for single coverage will jump from $1,700 to $3,000, while family deductibles will rise from $3,400 to $6,000. Out-of-pocket maximums are also on the rise, increasing from $2,650 to $3,950 for singles and from $5,300 to $7,900 for families.
Interim Human Resources Director Anne Keenan noted that the city considered various options in the market, ultimately deciding on the Aspirus Health Plan, which she described as the most competitive. The initial quote suggested a 20.3% premium hike if deductibles were to remain unchanged. However, with raised deductibles, the increase is reduced to 9.6%. Still, this will add over half a million dollars to the city’s budget for 2027.
Wausau previously transitioned its employee health coverage to Aspirus from Security Health Plan in 2025, with a memo indicating a guaranteed renewal cap of 9.5% for the following year.
Employees currently cover 12% of the premiums, which will increase from $106.28 to $116.48 for single plans, and from $327.32 to $358.74 for family plans. The city’s contributions will also go up, from $779.31 to $854.13 for singles and from $2,400.31 to $2,630.74 for families. However, premiums for dental and vision will remain unchanged.
The city will continue to match employee contributions to health savings accounts (HSAs), capping at $600 for singles and $1,200 for families.
A family reaching the out-of-pocket maximum in 2027 would end up spending nearly $3,000 more than this year, including $2,600 in extra out-of-pocket expenses and around $377 in raised premiums.
City Engineer Allen Wesolowski, who has been with the city for 26 years, remarked that a $2,600 increase in a single year is substantial. To bridge the gap, he suggested that a family would need to save about $250 a month for its HSA. “That’s not chump change for anybody,” he added.
Wesolowski pointed out that the city’s HSA match of $1,200 had never been adjusted, urging the committees to consider increasing the city’s family contribution to $2,500 to help ease the burden.
He also expressed concern that such changes could complicate recruitment efforts. Notably, a position for a city surveyor in the engineering department had remained vacant for two years, and two engineering technicians are nearing retirement from roles he believes do not meet market standards.
“The salary is not where it should be, and now we keep eroding the benefits,” Wesolowski said, emphasizing that this trend could deter potential candidates.
Alder Terry Kilian asked Keenan for her perspective. She explained that the city’s HSA match is designed to help mitigate costs for employees and highlighted that employees retain their HSA funds even if they leave the city.
“The city puts in what we can afford to, and about 75% of employees on the plan have not hit the current out-of-pocket maximum this year,” Keenan responded.
Alder Matt Hoenecke acknowledged that the plan seems to shift a considerable cost to employees by raising deductibles by 76%, while the city bears a smaller share through premium increases. “It makes a significant difference for our employees,” he noted.
Keenan pointed out that 169 employees are enrolled in family coverage, meaning an additional $600 HSA contribution would result in an extra cost of about $101,000 for the city, on top of premium increases.
Alder Vicki Tierney, who has experience in health insurance, remarked that the premiums employees are paying are quite low compared to many other plans she has encountered. She mentioned that her own deductible and out-of-pocket maximum are higher than those proposed in Wausau’s new plan. “I understand this is a large increase, but we’re facing budget constraints,” she acknowledged. “I wish it could be a lot lower, but I don’t know how the city can manage that,” she added.
Alder Tom Neal moved to approve the proposed plan in the Finance Committee meeting, noting that costs are rising across the board. Tierney seconded this motion. In the Human Resources Committee, Alder Andrew Wiskowski initiated the motion, also seconded by Kilian.
The 2027 package will incorporate additional voluntary benefits, including hospital indemnity, critical illness, and pet insurance, with the understanding that employees will cover the entire premium for these options.
