KSHB 41 reporter Elyse Schoenig covers the cities of Shawnee and Mission. She also focuses on issues surrounding the cost of health care, saving for retirement and personal debt. Elyse has been closely following updates from Olathe on the city's health insurance premium increases. Share your story idea with Elyse.
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The city of Olathe has extended its open enrollment window to Wednesday, Dec. 3, for city retirees facing significant premium increases in their health insurance costs next year.
A retired city employee first reached out to KSHB 41 about this last month, citing a recent Olathe City Council meeting.
At the meeting, multiple retirees said the city's health insurance premium increases could raise their health care costs by 500% to 900% in 2026, depending on their plan and coverage level.
During an open enrollment help session at the end of November for retired Olathe city employees, city officials announced they would provide a $250 per month subsidy for certain health insurance plans.
"The City Manager's Office understands that changes to the retiree health insurance plan for 2026 were shared with less than advance notice than many would have preferred, and we recognize that this has caused undue frustration and stress," the city said in a notification to retirees.
KSHB 41 reporter Elyse Schoenig has been talking with retirees since November. Four retirees confirmed the new subsidies with her after leaving the city's retiree open enrollment session.
"I still have grave concerns on some of the numbers," said Gary Nickerson, a retired Olathe firefighter and senior captain in the fire marshal's office.
Todd Hart, retired deputy fire chief, described the subsidy as a "Band-Aid."
Both men said they'll still need to make adjustments to their current city plans to afford these costs.
City of Olathe spokesperson Cody Kennedy also told Schoenig during an interview in November that the city is not immune to costs rising everywhere.
"This is really the first time, in a number of years, that outside economic factors have really influenced as sharp of an increase as this," Kennedy said.
Kennedy acknowledged the impact on both retirees and current employees.
"We understand that retirees have limited income," he said. "We also understand that employees have certain things they've got to pay for with children and all of those costs as well."
Kennedy noted the city's insurance rates remain lower than what the state statute sets, which allows employees to retire early.
He also pointed retirees and employees to free resources to help mitigate the increased premiums, including a well-being center for physical and wellness visits and a bundled service for routine surgeries and care.
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