Cooper City managers propose switching health plan, budget for 30% premium rise and a reserve to smooth future spikes

Cooper City officials told commissioners at a July budget workshop they are budgeting a roughly 30% increase in employee health insurance costs for the coming plan year and recommended switching carriers to limit that hit.

The City Manager said the city has “budgeted 30% increase in the health insurance plan” and that the current plan’s loss ratio is atypically high, driving premiums. Staff reported receiving market bids: Cigna declined, UnitedHealthcare offered coverage at a large increase, and Blue Cross Blue Shield (Florida Blue) provided a proposal staff said would reduce the city’s near‑term cost by about $104,000 compared with the renewal numbers and could free up as much as $600,000 compared with prior renewal assumptions.

Why it matters: the city’s health plan and its unusually high loss ratio are a major budget driver. Commissioners warned the council will face tradeoffs if the city asks employees to change providers; staff said some disruption is likely but that coverage for major conditions would continue.

City staff laid out both technical and practical elements. The presentation described the city’s current arrangement with FMIT (Florida Municipal…