City staff briefed the council on the municipal employee health-insurance renewal and proposed rate changes with Anthem.

Chance Fox explained that the city negotiated with the broker and settled on a 6% rate increase effective Jan. 1. Because the renewal occurs mid-budget cycle, absorbing the full 6% for the remainder of the current budget year would cost an estimated $30,000 based on current enrollment; the full 12-month cost would be roughly $60,000. Staff said they did not reopen an open-market bid and recommended accepting the negotiated terms.

Fox and other staff noted prior-year volatility (last year’s larger increase resulted in employee cost-sharing changes for family-tier plans) and said they do not view a 6% increase as drastic. If the council chooses to absorb the increase, payroll adjustments would be required for January. Councilmembers asked that the item be placed on next week’s agenda for a formal vote.

What’s next: Staff will present the final contract for council action at next week’s regular meeting; payroll changes would be implemented if the council votes to absorb the full increase.