Thousands of City employees are looking at a large increase in the cost of their health insurance coverage.

At a budget workshop, the Director of Human Resources announced that out-of-pocket costs for family health insurance coverage are going to rise an average of $200 a month. That increase impacts some 2,700 City employees, including police and firefighters.

The main reason for the hike is an increase in catastrophic claims. Mayor Joe McComb spoke with 3News about the rate hike.

"This is a real slap in the face to the public across the country, with these giant increases that are coming as a result of the health care cost. I hate for it to happen," McComb said. "You know it's a difficult decision to make. It's so it's hit the City pretty hard. It's going to hit our employees pretty hard, and the manager and her staff are working to minimize the impact."

McComb said in order to stop the increase, significant changes need to be made on the national level to deal with health care cost.