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Council hears insurance renewal presentation showing modest increase; members discuss HSA and multiple-plan options
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Summary
An insurance presenter told the council that Wellmark proposed a 3.95% overall medical premium increase; council members questioned HMO vs PPO offerings, high-deductible options and HSA/HRA structures and asked staff to prepare side-by-side illustrations and options for a future work session. No final coverage change was recorded in the transcript.
The council heard a presentation on the city employee insurance renewal after a motion to allow the presenter to speak. The presenter summarized claims history, loss ratios and renewal options and said Wellmark was proposing a 3.95% rate increase for the coming year.
“The first page just shows how Wellmark is proposing a 3.95% rate increase for this upcoming year,” the presenter said, and described a premium-versus-claims report dating back to 2021 that the presenter said explained why the city’s experience has beaten typical market trends.
Council members asked whether the city offers only a PPO plan and whether a high-deductible, HSA‑qualified plan or an HMO alternative could be offered. The presenter said the city currently does not offer a separate high-deductible option but that dual offerings (HMO and PPO) or an HSA-qualified high-deductible plan are feasible and could generate material premium savings if designed with employer incentives. The presenter provided an illustrative savings estimate saying a move from a $1,500 deductible to a $5,000 deductible can yield roughly 25% premium savings in some cases but cautioned that the city would need to model the risk if a large share of employees were to max out benefits.
Council members discussed administrative burdens, employee education needs and approaches used elsewhere (one example cited a district that deposited employer contributions directly into employees’ HSAs). Members asked the presenter to produce side-by-side options, cost illustrations and an explanation of employee impacts; the presenter agreed to deliver materials and to meet with the council in a work session later in the summer or early fall.
No council vote to change plan design or carrier was recorded in the transcript; the presentation closed with agreement to return with options for further review.
