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. Share your story idea with Elyse.
—
Some retired Olathe city employees say 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.
A retired city employee reached out to KSHB 41, citing the most recent Olathe City Council meeting, where several city employees and retirees discussed the increased premiums.
Olathe retirees, employees to face significant health insurance premium increases
Recent data from KFF shows insurers offering Affordable Care Act (ACA) plans could increase premiums by around 18% for 2026. The price consumers pay could jump by 75% if subsidies for the program expire at the end of December.
KFF data also shows premiums already went up 7% in 2025.
Gary Nickerson, who served the Olathe community for decades as a firefighter and retired as a senior captain at 52, received an email from the city about a month ago notifying him of the changes.
Andrae Hannon / KSHB
“I lived here since 1973 as an 11-year-old, and I’ve stayed. It’s my home,” Nickerson said.
The email stated that premiums, deductibles and out-of-pocket maximums will increase across all plans. Nickerson previously had most of his monthly premium covered by the city.
“Mine, personally, is going for a single person from $183 roughly to $1,000 [per month]. You’re upending my retirement to where I may have to go back and look for a full-time job,” Nickerson said during the council meeting.
Multiple other retired employees attended the meeting to voice their concerns about the increased costs.
“That is going to be $412 more a month for each of us, which is a major increase,” said retired Olathe police officer Damon Bell.
City of Olathe
“The cost of health insurance for retirees is increasing significantly and disproportionately in 2026,” said retired Olathe police chief Steve Menke.
City of Olathe
City of Olathe spokesperson Cody Kennedy said the increases will impact both city employees and retirees, calling it the first time in years that outside economic factors have influenced such a sharp increase.
Kennedy explained that the city’s insurance costs are currently 72% lower than what state statute allows and 52% lower than alternative COBRA coverage. He said this lower cost structure is what makes employees like Nickerson eligible for early retirement.
“We needed to right-size that ship to ensure that we were still competitive in offering employees reasonable insurance, low-cost insurance as much as we could, so it is a delicate balance between retirees and employees,” Kennedy said.
When asked why the city didn’t implement gradual increases instead of the dramatic jump, Kennedy pointed to the need to balance costs between retirees and current employees.
KSHB 41
“Unfortunately, as a nation, we’re in a very difficult time where health insurance costs are going up, and the city of Olathe is not immune to those costs,” Kennedy said.
Kennedy said the city has opened enrollment earlier than usual and is looking to extend the process to help affected individuals. Kennedy also noted that one plan still offers a 50% contribution from the city.
For Nickerson, the process has been frustrating.
“They gotta give us more notice. You can’t just change your whole retirement life in a month or two,” Nickerson said.
KSHB 41
Despite his concerns about the process, Nickerson believes his right to affordable health care is justified by his years of service.
“We put the time in. We risked our lives,” Nickerson said.
Kennedy 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.
In the email to retirees, the city acknowledged that these changes are significant.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
—
