The city of Knox will be receiving a rebate from their life insurance company to the tune of $34,672.22, according to Clerk-Treasurer Jeff Houston.
Houston explained that the city had received a letter from Trustmark Life Insurance Company explaining that the city would receive the rebate as required under the Affordable Care Act. The company had spent more than 20 percent of its premiums on administrative costs, salaries, sales, and advertising, and as a result, that extra amount spent must be returned to the city.
At least 80 percent of the company’s premiums must be spent on healthcare services, such as doctors and hospital bills, but Trustmark missed that 80-to-20 ratio by 2.4 percent.
Since the city of Knox pays 85 percent of an individual’s insurance premium, that amount was receipted into the general fund, while the other 15 percent will be applied to the employee’s premiums over the course of the next few months.
Houston explained that he has advertised for an additional appropriation of those funds to be voted on at their next meeting.