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Kenai Council adopts extension of employee health plan; renewal described as below-market
Summary
By unanimous consent the council authorized a contract extension for employee health care effective Jan. 1, 2026. Administration and the city's broker said the negotiated renewal is substantially below recent market trends and noted the city is currently performing under expected claims, which could yield a rebate.
The Kenai City Council adopted Resolution 2025-60 on Oct. 15 to authorize an extension of the city’s employee health-care contract effective Jan. 1, 2026.
The administration recommended renewing with the existing carrier and the city’s benefits broker, IMA, attended the meeting to answer questions. City Manager Terry Eubank described Premera as having the largest provider network in Alaska and said the plan has performed well year-to-date.
Eubank reported the carrier offered a “no-bid” renewal option and that IMA negotiated the offer: the administration cited a negotiated health renewal of about 4.1% and dental at about 6%, yielding an overall premium increase of approximately 4.18% year over year. Eubank also told the council the plan is running below claims expectations through August and that, based on current figures, the city could be entitled to roughly half of the underrun (an estimated $170,000) as a rebate if trends continue.
IMA’s representative noted market trends generally range from about 12%–18% and said the negotiated renewal aims to minimize disruption for employees while maintaining network access in Alaska.
The resolution was adopted by unanimous consent. Administration will finalize the contract extension and provide required notices to employees and documentation to the council.
