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If there’s one hot-button issue in this ice-cold weather, it’s health care reform at the national level.

A letter from its insurance provider has the city worried.

Mayor Bill Dane said he is worried about the implications of a health care reform bill — now passed the U.S. House and Senate in conference committee — after BlueCross BlueShield sent a letter to many clients (including the city of Kearney) stating rates would go up dramatically.

“On average, individual policies in the Kansas City area will increase by more than 45 percent as a result of health care reforms in the legislation…,” the letter dated Nov. 13 to the city said.

Sue Johnson, director of corporate communications for BlueCross Blue Shield of Kansas City, said the proposed federal requirements would throw off how the health insurance company does business. The company would be required to lower the cost for people older than 40 thus increase the cost for younger, healthy people to offset that. She said there are many factors that go into determining these rates.

“It’s that whole really complex actuary analysis,” Johnson said.

She said a rate increase of 45 percent is unusually high. Johnson said that 45 percent increase is a “general expectation” as a result of proposed health care reform, not a “worst-case scenario.”

“If it’s 25 or 50 percent — whatever it is, we really have two choices: make cuts or make a determination to overspend,” Dane said.

He said cuts could come from a variety of places from staffing to street maintenance — but hopes it doesn’t come to that. Dane said the city could shop around for another health care provider for its employees, but there are limited options in that market.

“The impacts are far reaching,” Dane said.

Sen. Kit Bond, R-Missouri, was among the 39 who voted against the measure that recently passed the house. Following the vote, he issued a statement on his Web site.

“Missourians deserve a real plan that lowers costs and improves the quality of health care and the Democrats’ government-run plan fails to achieve those goals,” Bond’s statement said.

Dane said he’s not against federal health care reform; he just thinks the current proposal needs work and should be phased in.

Dane said he’s also heard cap-and-trade legislation could result in the city’s electric bill going from $225,000 per year to $450,000.

“And that’s one municipality,” Dane said.

These things have the mayor worried about future city budgets.

“The federal government is putting local municipalities in a very difficult circumstance,” Dane said.

Kearney Editor Kevin M. Smith can be reached at 628-6010 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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written by Josh Boehm, January 07, 2010

1) Bond voted against the issue in the senate, not the house.
2) Of course corporations will resist reform and make threats about increased costs. Is this really unexpected?
3) Funny how cap-and-trade found its way into this article. What is this, the "attack sustainable liberal policy" issue? I mean, heaven forbid we pay the real cost of energy, not the low subsidized rate our government has been giving us. Heaven forbid the city actually rethink how it uses electricity.
4) Dane says municipalities are put under a "difficult circumstance" by federal action. Has he considered the actions of thousands of municipalities--including his regime's policies--that have put regional and national economic health (especially in the housing sector) at risk and are perhaps highest on the blame list for the housing crisis? How much has Kearney's or Smithville's sprawl cost the Kansas City metro? How much federal money constantly goes into expanding highways to meet traffic demands that exceed population growth? How much has the government spent trying to revitalize the inner city, which has declined largely because of municipalities (including Kearney) that continue to develop, despite an enormous housing vacancy in the region? The actions of the federal government are just and needed, which is more than most local municipalities can say of theirs.

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