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Council tweaks city health-insurance policy to limit employer share to lowest-cost tier 1 or tier 2 plan
Summary
Facing 2026 premium increases, the council amended Policy 3.03 to allow the city to pay 80% of the lowest-cost plan among ETF tier 1 or tier 2 products, a move staff said would reduce the fiscal impact compared with remaining constrained to 'lowest tier-1' language.
Onalaska councilors on July 8 approved a change to city policy 303 that updates how the city calculates its employer contribution to employee health insurance. The change allows the city to pay 80% of the lowest-cost plan among ETF-designated tier 1 or tier 2 offerings instead of a strict reference to “lowest-cost tier 1,” giving staff flexibility to limit employer exposure to premium spikes.
Staff told the council the change was prompted by large premium increases for the 2026 plan year; depending on…
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