Council hears briefing on health-insurance renewal that would raise costs for most plans

Council members on Oct. 28 were briefed on the city’s proposed health-insurance renewal for plan year 2026 and told that most employee plans would see increases.

Staff and the broker outlined four plan types the city offers — a PPO, an HMO, an HSA-linked plan and a Blue Choice Select PPO — and said expected increases for non-HSA plans are roughly 6–12%, depending on plan choice and benefits. Staff cited higher deductibles and growing prescription-drug costs as central drivers of the increases and said that the city’s historically customized plan has become more expensive to maintain.

Presenters said switching carriers (for example to UnitedHealthcare) had been considered but that changing carriers is disruptive and a heavy lift; staff recommended staying with Blue Cross Blue Shield’s option as the best available choice. Council members asked for clearer, user-focused information about how the changes would affect employees (for example, how many employees would see a deductible change from $2,500 to $3,500) and staff said they would translate technical details into practical impacts for employees and retirees.

No vote or formal action on the insurance program occurred at the meeting; staff said the administration and broker will return with final figures and scenarios for council review.