Finance committee recommends 2026 insurance package, cites minimal net cost increase

The Machesney Park Administration Finance Committee voted to forward Resolution 74 R 25 to the full board with a positive recommendation to approve insurance coverages with Blue Cross Blue Shield of Illinois and Principal Life Insurance Company for Jan. 1–Dec. 31, 2026.

Finance and HR Director Shannon Hanson told the committee the village reviewed benefit plans for 2026 and that, beginning in 2024, the village expanded health plan choices and moved non‑HMO plans from an 80/20 split to 90/10. Hanson said the four plans together reflected a 12.66% increase for 2026 but that, after the HMO was eliminated, the village’s net cost increase over 2025 is about 0.32%.

“the HMO is no longer a viable option as medical groups are exiting the plan, leaving its participants uncovered,” Hanson said, explaining why the HMO was removed from the village’s offerings. She told the committee that Principal’s dental rates will increase 6.8%, vision and term life rates remain unchanged, and the village continues to use health savings accounts and a health reimbursement arrangement (HRA) that is only funded when claim thresholds are met. Hanson said open enrollment for employees will run Dec. 2–12, 2025, so staff can finalize budgeting for the next fiscal year.

Chair called for questions after the presentation; none were raised and the committee approved the recommendation by voice vote. The resolution will be considered by the full board at tonight’s meeting.

Next steps: Resolution 74 R 25 proceeds to the full board for final action.