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Council approves 2025–26 employee health plan with an 11.9% premium increase
Summary
City council unanimously approved a resolution to fund the city’s self-funded group health insurance plan for 2025–26 after staff outlined plan-design changes and a premium increase intended to mitigate a large-claims spike.
City Council unanimously approved a resolution on Jan. 23 to fund the City of St. Petersburg’s self-funded group health insurance plan for the 2025–26 plan year. Chris Goella, Human Resources director, told council the plan had experienced a marked increase in large claims that would have produced substantial premium hikes without changes to plan design and member contributions.
Goella said the city has not made plan design changes since 2016 and emphasized cost-containment strategies, including the wellness center, as cost mitigants. He said staff expects a premium increase of 11.9% and estimated the plan’s total cost for the year at about $73,800,000. Goella recommended a combination of plan design changes and premium adjustments to mitigate the projected increase.
Councilmember Ford asked whether the changes affect individual employment agreements; Goella replied the agreements do not contain separate health-insurance provisions and that the changes fall under the city plan rules and regulations.
The council approved the resolution by a unanimous vote (Council Members Driscoll and Gabbard absent). Staff will implement the plan changes for the 2025–26 plan year and return with any administrative follow-up required under city purchasing and HR policies.
