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Council approves FY2025'26 benefits package; broker cites reduced renewal increase
Summary
Council approved the FY25'26 employee-benefits program after staff and broker negotiations reduced medical renewal increases and made administrative vendor changes for FSA administration.
The Florence Town Council approved the town's FY2025'26 employee benefits program, which keeps core medical, dental and life coverage with Blue Cross Blue Shield of Arizona and moves vision coverage to VSP. The package also retains Teladoc for virtual care, Jorgensen Brooks Group as the employee-assistance provider and selects UMB Healthcare Services to administer the Section 125 flexible spending account.
Catherine Wilson presented the renewal results and said broker Gary Johnson & Associates (represented by Eric Johnson) negotiated the medical renewal down to a 4% increase after an initial 5.5% renewal. Wilson said the HSA plan requires a plan-design adjustment to comply with IRS requirements that raise the annual out-of-pocket level to $3,300. Dental renewal returned 3% and life insurance premiums were rate-held at 0%.
Council members thanked the broker and staff for keeping increases modest and asked whether employees would pay more. Wilson said dependent tiers would see a slight increase while employee-only coverage and the employer ratio remain unchanged (the meeting referenced a 25/70/5 split on remaining dependent tiers). Council approved the benefits package to allow staff to proceed with May open enrollment.
What to expect: Human Resources will conduct open enrollment in May and report back on elections and fiscal impact to the town finance office.
