City approves 2026 medical, dental and life insurance renewals with modified employee cost shares

The Marshall City Council approved staff recommendations for 2026 employee benefit renewals covering medical, dental and life insurance.

Sheila Dubs, the city’s human resources director, and Aaron Casper, the city’s benefits consultant with National Insurance Services, summarized market responses and staff recommendations. Casper said the initial Blue Cross Blue Shield medical renewal quoted a roughly 19% increase; staff tested the market (request for proposals) and ultimately recommended remaining with Blue Cross Blue Shield at an 11% rate increase and no plan design changes.

On dental, staff said an initial renewal from the incumbent carrier (Beam Dental) showed about a 44% increase; after an RFP process staff recommended switching carriers to MetLife at a 19.1% premium increase. MetLife’s proposal includes a rate cap of 7% for years two and three.

For life insurance, staff recommended switching to Lincoln Financial with enhanced basic coverage levels (employee basic life increased to $50,000; spouse $10,000; children $5,000) and a two‑year rate guarantee plus enhancements to voluntary policies.

Staff recommended, and the council approved, modified cost‑share ratios that increase employee premium contributions (employee share raised to 15% for single coverage and 18% for family coverage on medical; a 5% employee share increase for dental single and family). Council approved the medical and dental motions, then approved life insurance; the life insurance motion passed with one council member recorded as voting no on the final roll call.

Staff will implement the contract changes and notify employees of new rates and plan carriers in advance of the 2026 enrollment period.