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Council awards 2026 employee group insurance package following competitive bids; Aetna selected with negotiated terms
Summary
After reviewing a 17.6% above-premium claims run (117.6% loss ratio) and competitive bids, staff and the broker recommended switching or moving benefits to Aetna; council approved the award and authorized the city manager to execute the necessary documents. Broker said negotiations and credits reduce the net increase to roughly 7.5% for 2026.
The council approved awarding the City of Decatur—s 2026 employee group insurance package after a presentation from the city—s benefits broker. The broker reported a multi-year run of claims where paid claims exceeded premium (117.6% loss ratio in the most recent data). Blue Cross Blue Shield—s renewal was high and they declined to negotiate; competitive proposals from Aetna and other carriers were reviewed.
The insurance committee and broker negotiated terms with Aetna that included a transition credit and secured reductions on ancillary lines (dental, vision, disability). The broker said the negotiated Aetna proposal brought the net increase down to about 7.5% after a $76,000 transition credit; dental and vision costs were reduced in the package. Council voted to award the group insurance for the enrollment period 01/01/2026 through 12/31/2026 and authorized the city manager to execute the necessary documents.
Ending
Human Resources and the broker will finalize transition details with employees and providers to minimize network disruption; staff said plan designs are intended to match current benefits closely and that most local providers participate across the major carriers.
