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Rexburg council approves 2026 health benefits changes; employees to bear average 12% increase
Summary
The City Council approved changes to employee medical, dental and vision funding for 2026 after staff reported a negotiated 12.6% premium increase from the insurer and a deteriorating claims experience. The city will keep an 85/15 employer-employee split and use budgeted increases to cover much of the rise.
Rexburg City Council on Monday approved changes to the city's employee benefit funding for 2026, including a recommended average 12% increase in employee contributions and a 7% employer-side increase already included in the budget.
Finance staff presented medical, dental and vision renewal information and said the municipality's insurance experience had worsened in the first half of the year. "We were at 77% ... but this year, we're at a 119% experience," Matt Nelson, a city staff member, told the council. He said the city's broker had originally quoted an increase close to 30% and negotiated it down to about 12.6%.
The changes the council approved keep the city's target cost split at roughly 85% employer and 15% employee for overall benefits. Nelson…
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