Litchfield City Council Switches Employee Health Insurance to United Healthcare, Secures Projected 13 Percent Savings

Litchfield City Council Meeting | March 19, 2026

Article Summary: The Litchfield City Council on Thursday, March 19, 2026, approved a switch to United Healthcare for city employee health insurance, moving away from Blue Cross Blue Shield to realize tens of thousands of dollars in projected savings while maintaining comprehensive coverage.

Health Insurance Renewal Key Points:

• The council approved the renewal of employee health insurance for the period of May 1, 2025, to April 30, 2026.

• The city is switching carriers to United Healthcare, which quoted a 13% savings, or $82,697 under the previous year’s costs.

• The previous carrier, Blue Cross Blue Shield of Illinois, had proposed a 10% premium increase.

• The new plan offers lower costs for adding dependents and maintains free plan options for union employees.

The Litchfield City Council on Thursday, March 19, 2026, voted to overhaul the municipality’s employee health insurance coverage, switching carriers to secure a significant reduction in annual premium costs.

Under New Business, Alderperson Josh Hughes made a motion, seconded by Alderperson Sara Zumwalt, to approve the renewal of health insurance for city employees for the coverage period of May 1, 2025, to April 30, 2026, through Assured Partners.

City Administrator Breann Vazquez explained that the city sought quotes from multiple companies. The city’s current provider, Blue Cross Blue Shield (BCBS) of Illinois, proposed a 10% rate increase. However, United Healthcare (UHC) offered a quote that was 13% below the city’s previous year costs—representing a projected savings of $82,697.

Carson Bower, a representative from the Assured Partners brokerage team, addressed the council remotely. He noted that the city’s recent loss ratio was high, meaning the city submitted more in claims than it paid in premiums. Despite this, UHC offered a highly competitive rate reduction.

“In these days and age, especially with health insurance, that is very, very rare,” Bower said. He added that the plan designs are very similar to the current BCBS coverage, and prescription drug co-pays will actually improve under the UHC plan.

Vazquez highlighted additional financial benefits for city staff, noting that adding dependents to the UHC plan will be significantly cheaper. “Blue Cross Blue Shield charges, I believe, three times as much to add dependents. United Healthcare is double. So you’re getting a third lower cost there,” Vazquez said. Furthermore, across all three of the city’s collective bargaining agreements, union employees will still have access to two plans at no premium cost to themselves.

Alderperson Bert Holloway raised concerns regarding recent negative national news surrounding United Healthcare, specifically questioning the carrier’s reputation for difficult prior authorizations and handling of pre-existing conditions.

Bower clarified that UHC cannot deny coverage for pre-existing conditions. While he acknowledged that prior authorizations are becoming more stringent across the entire insurance industry, he assured the council that the brokerage team has direct contacts to expedite urgent claims and treatments. Vazquez also confirmed that major local providers, including Litchfield Family Practice, Litchfield Hospital (HSHS), and Springfield Clinic, are all in-network with UHC.

Following the discussion, the council approved the insurance switch via a unanimous roll call vote.