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Sierra Vista to move employees from PPO to EPO plan; council budgets to split insurance increase with reserves and employees

3851102 · June 17, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City staff told the council that all employees on the PPO will be switched to an EPO Blue Cross Blue Shield plan starting with the new fiscal year and that the budget absorbs roughly one-third of a planned insurance increase while a third will come from reserves and a third from employees.

City staff told the council the proposed FY2026 budget includes changes to employee health coverage and personnel costs. Kenzie (HR staff) said, “starting with the new fiscal year, all employees who are currently on the PPO will be changed to the EPO.” Kenzie further explained the EPO option remains on the Blue Cross Blue Shield network and will pay for in-state and out-of-state providers as in-network when those providers participate with Blue Cross Blue Shield.

Chuck (city manager) said the city engaged a benefits consultant from Gallagher after several…

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