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Council human‑resources committee hears insurance renewal: negotiated medical increase cut to about 10%, overall 9% rise
Summary
City staff reported an initial 22.7% medical insurance renewal offer was negotiated down to about 10%; overall employee benefits lines (medical, dental, vision, life) rose roughly 9% and staff recommended placing the renewal on the August 4 council agenda for approval.
City staff told the Human Resources Committee on July 21 that the city’s employee medical renewal initially returned at a proposed 22.7% increase but negotiations with Blue Cross and Blue Shield reduced that to about a 10% increase for medical lines; dental, vision and life lines did not increase. Overall, staff said the net effect is approximately a 9% increase across employee benefit lines.
Liz, who presented the renewal materials, said the city budget had anticipated a 10% increase. She told the committee, "We were able to bring that down to 10% through negotiation with Blue Cross and Blue Shield." She said the city’s final total after negotiation was approximately $2.64 million for the benefit package and that the increase in the budgeted year over year cost was roughly $223,000.
Committee members said the negotiated reduction was welcome and asked staff to place the renewal for formal consideration and approval on the council’s regular agenda August 4 so the city can finalize coverage.
No final approvals were taken in the committee; the item will return to the council for formal action with the renewal documents.
