The Newnan City Council received a presentation Sept. 9 from MSI Benefits and broker John Leggett on the city’s proposed employee benefits for 2026, covering medical, dental and vision plans.

Leggett told the council Newnan’s self-funded Cigna medical plan ran below budget in 2024 and through 2025 projection, with pharmacy costs at about 22% of plan spend. He said the initial renewal proposal from Cigna would have increased fixed administrative and stop-loss costs by about 14% and claim liability by about 7%, producing a near 9.5% increase. After negotiation and market pressure, Leggett said Cigna reduced the fixed-cost increase to about 8% and claim liability to about 3%, yielding a combined increase just under 5% and an estimated premium impact of roughly $58,000 on the budgeted figures presented.

Leggett and staff recommended renewing medical coverage with Cigna, noting that the city’s self-funded approach has generated an insurance reserve (group insurance fund) of about $1.8 million currently and an estimated $1.6 million by year end; those funds can be used to stabilize rates in years with higher claims. On dental, Delta Dental initially sought a 30% increase; MSI said it solicited quotes and MetLife offered a more competitive option, and Delta agreed to lower its increase to about 22%; the dental plan is voluntary and employee-paid. For vision, staff recommended adding a buy-up option that increases the frame/contact allowance and adds retinal screening coverage; the buy-up would cost employees approximately $4.48 per paycheck versus $2.68 for the standard option.

Council voted to accept the recommended renewals and plan changes by voice vote. Council members asked how the reserve fund would be used; Leggett and staff explained it would be available to pay claims in deficit years and is not currently capped. The presentation contained detailed financial figures and renewal mechanics; the city will proceed with the vendor renewals and plan-option changes as presented.