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City outlines 2026 benefits renewals: medical up about 4.9%, new carrier for life and disability
Summary
Human resources reported a 4.93% overall medical renewal for 2026, a 3.2% dental increase, introduction of UnitedHealthcare as a second medical carrier (initial enrollment ~15%), and a planned carrier change for life and disability to Unum with negotiated no premium increase.
Ryan Lance, director of human resources, presented the city's 2026 benefits renewal summary and open enrollment plans.
Lance said the city's overall medical renewal for 2026 is increasing about 4.93%, dental is up 3.2% and vision will not change. The city will continue to offer Kaiser Permanente plans and added UnitedHealthcare (Choice Plus and two other plans) in January; initial enrollment in UnitedHealthcare is just over 15% of employees, with new employees trending toward UHC at roughly a 50% rate.
Lance said employee premiums will increase in most Kaiser plans by about 5%. For UnitedHealthcare, he said employees will see a 15.4% increase for the HDHP Choice Plus option, 3.4% for the $750-deductible plan and 2.8% for the $1,000-deductible plan. Lance noted federal IRS changes that raise the deductible minimums for high-deductible health plans (to $1,700 for single and $3,400 for family) and increase HSA contribution limits; the city contributes to employee HSAs and, per Lance, contributes $1,200 for employee-only, $1,500 for spouse/children and $2,400 for family accounts (as described in the presentation).
Lance said the city conducted a dental RFP and kept Delta Dental as the dental carrier to avoid disruption to employees; dental renewals are a 3.2% cost increase. He described a substantial proposed increase from the incumbent life and disability carrier (Voya) of roughly 80% driven by claims history; after going to RFP the city selected Unum and negotiated the cost to a 0% increase while adding voluntary benefits such as accident, critical illness and hospital indemnity.
Lance said the city will run an active open enrollment this year (employees must re-enroll to retain coverage); the program has achieved 98% participation previously. Staff will use mailers, open enrollment guides, presentations and recorded materials to reach employees. Council members asked about UHC take-up and HSA contribution indexing; Lance said UHC enrollment is expected to grow toward 20-25% over time and that the city did not propose increasing its HSA contribution for 2026.
Ending: Staff will proceed with the 2026 renewals as described and implement active open enrollment with communications and outreach to employees; council praised staff's work on keeping cost increases lower than many municipalities.
