Council authorizes 2026 health benefits with Cigna; employees see no premium increase

The Sandy Springs City Council voted to authorize the city manager to execute the city’s 2026 health benefits proposal with Cigna and to approve the city's payment of health benefits effective Jan. 1, 2026 (agenda item 2025-268).

Human resources director Liz Aubrey told council that projected 2026 health plan costs total approximately $9,732,120, subject to final employee enrollments. Aubrey said the projection represents an overall increase of 4.9% compared with 2025 and covers 479 employees and 1,127 covered people in total. She said staff is not recommending an employee premium increase for the seventh consecutive year.

Aubrey described a market solicitation in which multiple providers declined to quote or provided materially higher rates; independent analysis and the city’s broker concluded that remaining fully insured with Cigna at a 4.9% renewal was preferable to self-insurance for 2026, though staff recommends reevaluating self-insurance next year. The city will introduce a third high-deductible health plan option for 2026 and transition dental to a self-insured pilot program.

Council members commended staff for exploring alternatives and asked for further detail on self-insurance options and savings opportunities. Mr. Paulson said he looks forward to follow-up reports next spring; Mr. DeGiulio thanked staff and confirmed that employee costs would not increase for the seventh year.

The council approved the resolution on a motion by Mr. Paulson, seconded by Mr. DeGiulio.

Next steps: staff will execute the plan-year 2026 agreement and provide subsequent reporting to council on self-insurance feasibility and the dental self-insurance pilot.