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Payson staff recommends mixed premium-sharing option for FY26 health plans, proposes modest employee premium increases
Summary
HR proposed three insurance scenarios for FY26 and recommended Option 3, which spreads premium increases across plan tiers and asks employees to share a small portion of cost increases; staff said Kairos pool premiums rose modestly for Payson while the pool average rose more sharply.
Human resources and benefits staff presented three options for employee health-benefit cost-sharing for fiscal year 2026 and recommended "Option 3," a plan that standardizes employee contributions across plan tiers and asks employees to take modest increases in premium-sharing on buy-up plans.
Background and pool status: - Payson is in the Kairos Health Arizona public-entity pool. Kairos reported average premium increases for pool members near 14% for FY26, with some members receiving increases as high as 25%. - Payson—s actual negotiated premium increases for FY26 were smaller: medical premiums increased about 5%, dental 3%, and vision had no increase. For that reason, staff said Payson is not facing the larger double-digit premium increases seen elsewhere in the pool this year.
Retiree benefits and OPEB: -…
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