Committee moves Delta Dental renewal out of committee after debate on rising city insurance costs

Jackson City’s finance committee on Thursday voted to take an order authorizing the mayor to renew a Delta Dental plan for active municipal employees and retirees out of committee for further consideration.

The item would renew dental coverage for the period Jan. 1, 2026, through Dec. 31, 2026; a committee member formally moved the order and the chair recorded a voice vote in favor of taking it out of committee. The move clears the renewal for consideration at the special meeting on the item.

Members spent the bulk of discussion on broader insurance costs and governance. “Our general fund revenues verified are about 105,000,000,” a committee member said, and “the health insurance is costing us slightly more than $50,000,000 a year off the general fund.” The same speaker added that health coverage averages about $6,000 per employee and family or plus‑one coverage can cost about $18,000 for an enrolling employee.

Deborah Whitehead, Human Resources, said the city solicited quotes directly from Delta Dental and asked for proposals “without commission included to be submitted directly to the City of Jackson” because the prior agent‑of‑record contract expired Dec. 31, 2024. Whitehead said the administration could not rely on rates submitted by the outgoing agent and recalculated rates were provided directly to the city.

Committee members said those procedural details and the size of the city’s health obligations argue for reconstituting an Insurance Advisory Committee to give the council more timely information ahead of next year’s budget. One member said the advisory group will include the city attorney, HR, finance and others and that the mayor was being asked to add a non‑administrative or lower‑paid employee representative if separation‑of‑powers rules permit.

Committee members also discussed the dental proposal’s immediate impact on employees. The chair clarified the city will not contribute to this dental policy: “The city pays nothing on this dental policy. This is strictly the employees,” the chair said, and members requested spreadsheet‑level analysis of per‑person costs before the budget cycle.

A voice vote approved taking the Delta Dental order out of committee; committee members thanked staff and said the insurance advisory committee will report back with recommendations before the 2026 budget cycle.