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Council hears update on city health insurance fund; officials cite projected rate increases
Summary
City staff told the Gardner City Council the health insurance trust fund balance is about $1.4 million and that the insurance advisory commission projects a roughly 12% increase in health premiums and 3% in dental for FY 2026.
Councilor Hegland updated Gardner City Council on the status of the city’s health insurance payments and trust fund during the April 22 meeting.
The trust fund balance was reported at $1,400,000, which Hegland described as “not as comfortable as the city may wish but it’s in a better spot than it had been.” He said the Insurance Advisory Commission projects rate increases for FY 2026 of about 12% for health insurance and 3% for dental coverage. The council was told the city is reviewing other options, but Blue Cross Blue Shield remained one of the lower-cost options under consideration.
Why it matters: anticipated premium increases will affect the city’s FY26 budget and employee open enrollment; the council’s finance committee will continue to monitor options and rates.
Discussion and next steps
Hegland said the city will have an open enrollment for employees in May and that the finance committee will continue to monitor the fund and alternative providers. No formal vote was taken; the item remained with the finance committee for ongoing oversight.
