Muskego committee reviews options to reduce 2026 health insurance renewal amid $219,000 increase

MUSKEGO, Wis. ' At a Sept. 9 Committee of the Whole meeting, benefits consultant Sandy Motts told alderpersons the city's medical plan renewal is projected to increase about 8.5% for 2026, producing roughly a $219,000 budget impact unless changes are made.

Motts, of consulting firm Cunningham and Butler, said the city has three broad paths: remain fully insured with the current carrier, move to the State Employee Trust Fund plan, or pursue self-funding. She recommended against self-funding now because the city's current stop-loss market and high-cost claimants make self-funding riskier.

Why it matters: the projected renewal would increase premiums and the city's net spend substantially at a time the council is finalizing the 2026 operating budget.

Motts said the city's current net cost per employee per year is approximately $27,050 and that the renewal as-quoted would drive an approximately $219,000 increase. She presented several a la carte options intended to lower that amount without immediately increasing employee premium shares.

Key options and estimated savings Motts presented: - Increase insurer-level deductible from the current level (presented as "3,006") to $5,010 and raise HRA funding so employees see…