Andover approves 2026–27 benefits renewal, adds mental‑health copay reduction and vision enhancements

City staff and the city's broker presented the 2026–27 employee benefits renewal to the Andover City Council on April 14 and the council approved the renewals as presented.

Chastity (benefits presenter) told council the self‑funded medical plan is performing well after three years of self‑funding and the plan carried approximately $273,000 in reserves: "the plan ... is running at 63.3% of expected. That is, right now with a reserve of 273,000." Broker Jayla said that allowed staff to recommend modest plan enhancements while still projecting net savings: "the medical renewal for 2026 is a 0.2% increase which equates to $3,190 overall," and staff recommended renewing with current third‑party administrators.

Recommended enhancements for co‑pay plans included dropping the outpatient mental‑health co‑pay from $25 to $0 and reducing chiropractic co‑pays from $50 to $25. Staff also proposed increasing vision benefit allowances (from $150 to $250), which would raise vision rates and be funded from the medical plan savings. The city will maintain employee contribution percentages across plan tiers and continue HSA seed contributions ($500 individual, $1,000 family).

Some ancillary lines showed higher rates: short‑term disability increases were described as driven by claim experience and an added provision to pay sick pay on top of disability; vision enhancements would raise vision costs but be paid from medical savings. Staff recommended renewing dental, life, disability, FSA/HSA, and EAP plans with vendors and bringing broader marketing of some lines in 2027.

Council asked to receive the full "voice of the employee" survey data and an executive summary; the broker said the survey was anonymous and results would be provided to city administration.

Council approved the insurance renewals and related benefit changes following the presentation (motion recorded and carried).