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Council approves fiscal year 2026–27 employee benefits package with a new plan option
Summary
Council approved renewal of the FY26–27 employee benefits package with Blue Cross Blue Shield, adding a 'silver' plan option and moving FSA administration to HR Pro; overall medical renewal was negotiated to about 3% for the HSA plan and roughly 12% across market without benefit changes.
Town human resources staff and consultant Eric Johnson presented the proposed FY 2026–27 employee benefits renewal and the council approved the package.
Johnson said the market presented unusually large increases this year, but negotiations and marketing produced a renewal outcome considerably lower than many peers — the final medical renewal was reduced to single digits and the HSA plan renewal was about 3% after negotiation. To expand employee choices, staff proposed adding a new "silver" plan that preserves network access but reduces premiums for some employee families; consultants projected that modest enrollment shifts could reduce the town’s overall cost increase.
The renewal keeps the current network and most plan designs intact, recommended continuing bundled dental and life coverage, retained existing telehealth services (TeleDoc) at no cost increase, and suggested moving FSA administration to HR Pro after employee complaints about the previous vendor. Council members praised staff’s market work, emphasized the desire to preserve employees’ doctors and networks, and approved the benefits package on the motion on the floor.
Staff said the town will continue employee outreach about plan choices and enrollment and encouraged employees who have access to spouse plans to evaluate cost differences.
