Council approves 2026 employee benefits package; city to switch medical plan to Blue Cross with 12% rate cap

The Sandpoint City Council on Oct. 15 approved the city's 2026 employee benefits package and authorized staff to move the city's medical coverage to Blue Cross of Idaho, which offered a two-year rate cap of no more than 12 percent.

Why it matters: Employee health insurance is one of the city's largest non-salary expenditures. Staff and the council framed the decision as an effort to limit near-term premium volatility while preserving a range of plan choices for employees.

City staff and the city's broker reviewed multiple proposals after a large renewal increase from the incumbent carrier. The Blue Cross offer includes a guaranteed maximum increase of 12 percent for the coming renewal period and places the city in a mid-size pooled arrangement with Blue Cross. Key elements approved by the council: - Plan design changes: the classic (standard) plan's deductible increases (from $1,500 to $2,000) and its…