Fayette Shifts Employee Health Plans to Level Health

City administrator says new self-funded plan will keep costs steady but raise employee premiums.

Published on Feb. 14, 2026

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The Fayette Board of Aldermen voted to switch the city's employee health insurance provider from Anthem Health to a self-funded plan from Level Health. City administrator Deanna Cooper said the new plan should keep the city's expenses the same, but employees will see a $45 per paycheck increase in their insurance dues.

Why it matters

The decision to change health insurance providers is an important one for municipal governments, as employee benefits can be a significant portion of a city's budget. Fayette's move to a self-funded plan aims to control costs while still providing quality coverage for city workers.

The details

In addition to the health insurance change, the Fayette Board of Aldermen also approved a waiver for a resident on N. Church Street to avoid excess sewer charges from a leaking fixture. The city also noted that its utility costs jumped $135,000 last month due to the extreme cold and snow storm, and they have negotiated with the Missouri Public Utility Alliance to spread those increased costs over the next nine months.

  • The Fayette Board of Aldermen agreed to the changes on Tuesday, February 10, 2026.
  • The city's next Board of Aldermen meeting is scheduled for Tuesday, February 24, 2026.

The players

Deanna Cooper

The city administrator of Fayette, Missouri.

Fayette Board of Aldermen

The governing body of the city of Fayette, Missouri.

Missouri Public Utility Alliance

An organization that Fayette has negotiated with to spread increased utility costs over the next nine months.

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What they’re saying

“The city will shift from Anthem Health to a self-funded plan from Level Health that should keep the city's expenses the same.”

— Deanna Cooper, City Administrator (KMMO News)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

Fayette's decision to switch to a self-funded health insurance plan highlights the financial pressures facing municipal governments, who must balance employee benefits with budgetary constraints. The city's negotiations with the Missouri Public Utility Alliance also demonstrate the need for creative solutions to manage unexpected spikes in utility costs.