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Council hears staff recommendation to keep PEHP for 2025, enrollment deadline this week
Summary
City staff recommended PEHP as the most cost-effective medical plan for 2025, citing an expected 5.4% increase in premiums versus a budgeted 8%; the broker (Hub International) compared alternatives and staff asked council for authorization before employer enrollment closes at the end of the week.
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City staff presented options for employee medical and dental coverage for 2025 and recommended maintaining PEHP after a broker analysis. "We're going up 5.4" (percent) for medical and "3.5" (percent) for dental, staff said, noting these increases are lower than an earlier 8% budget assumption and that a customary PEHP rebate (about 1% last fiscal year) may further reduce employer costs.
Hub International compared PEHP with SelectHealth and Blue Cross Blue Shield; staff said their analysis still points to PEHP as the most cost-effective option for the city. The presentation noted optional voluntary products (Sun Life, Washington National) employees can elect at their own cost.
Staff emphasized the employer enrollment deadline is the end of the week and requested a council motion that night to approve the selected plan for 2025. Council members asked if a formal motion was required that evening; staff confirmed a decision is needed to meet the enrollment deadline.
No final motion/vote on the benefits provider was recorded in the transcript excerpt.
