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Council approves 2026 cafeteria plan renewal as staff seeks side‑letter talks with unions over medical premium spike
Summary
The council approved the 2026 cafeteria plan renewal to preserve employee and retiree benefits coverage despite a roughly 14.6% increase in medical premiums; staff will pursue short‑term options and discuss side‑letter negotiations with unions to mitigate employee impacts.
The Merced City Council on Sept. 15 approved the 2026 renewal of the city’s cafeteria benefits plan — covering medical, dental, vision and other welfare benefits — while acknowledging a near‑15% jump in medical premiums that will increase costs for both the city and employees.
Human Resources staff reported the medical portion of the plan rose about…
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