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City hears insurance RFP: negotiated plan limits premium growth but raises deductibles
Summary
Broker USI told council that Anthem's initial 15% renewal was negotiated to a 9% renewal offer and plan redesign yielded a 2.6% premium increase overall, with individual deductibles rising to $1,500 and family deductibles to $3,000; staff said the change would add roughly $12,000 to next year's budget and will be reviewed with employees.
City staff and broker USI presented the results of a request for proposals for Radford’s FY2026–27 employee medical, dental and vision plans, saying negotiations limited overall premium growth but required higher deductibles.
Katie Trimble of USI told council that Anthem initially proposed a 15% increase to the current plan but, after negotiations and a move to the Healthkeepers network, produced a final renewal scenario representing a 2.6% premium increase compared with current costs; she said the change represents about $400,000 in savings versus Anthem’s original renewal proposal and includes a $90,000 one‑time administrative credit. Trimble recommended an individual deductible of $1,500 and a $3,000 family deductible while keeping primary-care co-pays in place. She also reported a vision bid that would reduce employee premiums and said Delta Dental will remain the dental carrier with plan design changes.
City Manager Todd Meredith said staff estimate the net budget impact is modest — roughly $12,000 more in the coming fiscal year — and recommended staff meet with employees to show how choices will affect paychecks. Council asked detailed questions about preventive care, out-of-pocket costs and the availability of plan options; Trimble said preventive dental care remains outside the deductible and co-pays for primary and specialist visits will remain in place.
