Northport commission agrees to absorb 2025 health‑insurance increase for city employees

After an extended discussion of rising health‑insurance costs, the Northport City Commission on June 16 agreed that the city would absorb the full projected 2025 increase in employer health‑insurance contributions for the coming budget year.

Human Resources staff told commissioners the primary drivers of the increase were higher claims tied to cancer and diabetes and a 15% hike in the carrier’s administrative projection. HR and finance briefings showed the budgetary impact at roughly $228,000–$283,000 depending on final enrollment, and staff projected the family‑plan increase would amount to about $43 per pay period per family if the city passed the full increase on to employees.

Several commissioners said shifting the whole increase to employees would risk turnover and higher replacement costs; others urged exploring cost‑sharing approaches in future years. Commissioner Duvall proposed a partial split; Mayor Stokes and other commissioners favored absorbing the full cost this fiscal year and revisiting the model later.

Commission direction recorded on the record was that for FY2026 the city will absorb 100% of the health‑insurance premium increase. Staff said they will continue efforts to lower long‑term costs — including a planned employee health clinic scheduled to open in January 2026 — and to present options for cost‑sharing or benefit design changes for future budgets.

Ending: The commission’s decision provides immediate relief to employees for FY2026; staff will return with metrics and projections about the clinic and with recommendations on benefit design in time for the next budget cycle.