Council approves 2026 employee benefit renewals, keeps most rates steady and continues HSA contributions

Human Resources Director Sarah Dressel presented the proposed 2026 renewals for employee benefit plans and the council approved each contract on Oct. 28.

Dressel said Security Health Plan initially quoted a 2.9% increase on medical rates but reduced that to 1.6% in the city’s renewal quote. She noted increases to high-deductible plan deductibles: the single deductible moves from $3,300 to $3,400 and the family deductible from $6,600 to $6,800. Staff recommended renewing the two high-deductible plan options (the Premier plan and the Simply 1 plan) with Security Health Plan; the council approved the renewal.

Dressel reported Delta Dental did not raise rates for 2026 and that the council approved the dental renewal. On vision coverage, the council approved renewal with National Vision Administration after staff said the carrier provided a rate guarantee through Jan. 1, 2029.

For dependent-care flexible spending accounts administered by Employee Benefits Corporation, Dressel said the federal maximum rose from $5,000 to $7,500 and staff recommended offering the $7,500 option; EBC did not increase administrative fees. The council approved continuing the program with the higher contribution option.

Dressel also recommended the city continue contributing to employee HSA accounts for those enrolled in a high-deductible health plan at $500 for single coverage and $1,000 for family coverage for 2026; she said about 135 employees currently elect the high-deductible plan. The council approved that contribution policy.

All renewals were approved by motions from council members as recorded in the meeting; the council did not ask staff to seek alternative vendors for the covered plans during the Oct. 28 meeting.