San Luis council approves $3.7 million allocation after consultant recommends 32% medical-plan funding increase

San Luis City Council on a 5‑1 roll call vote approved a cost‑sharing plan and a $3.7 million allocation to the city’s employee benefit trust to cover a projected 32% increase in funding for the city’s self‑funded medical plan.

Dave Madden, a benefits consultant with CBIS, told the council the city’s medical plan is the biggest cost driver and that actuarial analysis shows a recommended 32% funding increase for plan year 2025–26. “We arrived at a recommended 32% increase in funding for your medical plan,” Madden said, citing catastrophic claimants and inflationary pressures on medications and provider services.

The increase follows actuarial findings that a small number of high‑cost claimants are driving most plan costs. Madden said the stop‑loss (catastrophic) insurance that protects the city has risen sharply and that several members of the plan have generated very large claims in the past year, including one claimant notified in March with more than $700,000 in claims.

Rola Encinas, director of finance,…