The city of Warrenton has decided to switch health insurance provider after being told the rates for its current provider would increase 31 percent.

The change was made at Warrenton’s April 21 Board of Aldermen meeting. This was the time for the city’s annual health insurance renewal, said Director of Operations Brandie Walters.

“With this big of an increase, we can’t really justify taking that to our employees,” Walters told the board of aldermen.

Warrenton’s health insurance plan covers 60 city employees, as well as family members, Walters said.

With such a high estimate from current provider United Healthcare, Walters said the city asked its agent to seek other bids. United Healthcare, Cigna and Anthem submitted bids.

“Our lowest bid was Cigna. They came back with a 13 percent increase,” Walters said.

Cigna also offered a small discount for switching over the city’s dental plan as well.

United Healthcare declined to match that offer, Walters said, so she recommended switching to Cigna.

For health insurance, Walters said Cigna’s bid will increase the city’s annual cost by over $78,000. Dental insurance was actually a slight decrease.

Walters said city employees currently have a high insurance claims history, meaning if Cigna comes to the city with a rate increase next year, the options for other health insurance providers could be limited.

City Administrator Terri Thorn elaborated that employee health care claims are private information, but that there are “very significant” claims going on right now.

“I’m not surprised at all that most companies don’t want to touch us with a 10-foot pole,” Thorn said. She estimated that employee claims over the last year might be in the hundreds of thousands of dollars.

A representative of J.W. Terrill, an employee benefits firm, told the board of aldermen that Cigna’s bid, with a 13-percent cost increase, is in line with national trends.

Aldermen voted 6-0 to approve Cigna as Warrenton’s employee health insurance provider for the next year.