Kenai council renews employee health plan with incumbent carrier after broker negotiation; projected ~4.2% premium rise

The Kenai City Council on Oct. 15 adopted Resolution 2025-60 authorizing an extension of the city’s employee health-care contract effective Jan. 1, 2026, following a presentation by City Manager Eubank and the city’s broker, IMA.

City Manager Eubank said the administration’s recommendation favored renewing with the incumbent carrier to limit disruption for employees and because the city’s plan is performing better than expected. “We get to share in up to half of those savings if we renew,” Eubank said, explaining the plan’s performance to date. He told the council the most recent data through August showed claims below expectations and that the city could be entitled to a rebate based on that performance, while cautioning that large claims can quickly change projections.

Representatives from IMA (identified in the meeting as Amanda and Shannon) described market conditions and said the market trend is typically between 12% and 18% for renewals. They said negotiating with the existing carrier secured a substantially lower increase: the administration reported a negotiated health renewal of about 4.1% and dental renewal around 6%, yielding an overall projected year-over-year premium change of about 4.18%.

Councilors asked whether the amount had been budgeted; Eubank said the administration had projected roughly 8% in the budget, so the negotiated renewal is below the anticipated budget increase. Council expressed thanks for the broker’s work and for staff efforts on the renewal process.

The council adopted Resolution 2025-60 by unanimous consent. City staff noted the figures are subject to change if claims experience shifts, and that the renewal preserves network access in the state through the incumbent carrier.