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City hears broker explain drivers of rising health costs; renewal cut from 51% to 32% after negotiation
Summary
A broker told Indian Harbour Beach council that medical inflation, specialty drugs and higher utilization are pushing premiums up; the city's renewal was negotiated down from an initial 51% to 32%, and the broker recommended continued market solicitation and employee education as cost-control steps.
Cindy Drapalski, owner and broker of Intercoastal Insurance, told the Indian Harbour Beach City Council on June 23 that rising medical inflation and high-cost specialty drugs are the primary drivers of higher employee health-care costs.
"The actual renewal rate that came out was 51%... I was able to get that down to 32%," Drapalski said, describing last year’s negotiations. She described industry trend projections for 2026 of roughly 9% and said one carrier had indicated a 12% trend for Florida.
Drapalski explained the broker role: soliciting competitive proposals, negotiating pricing and contract terms, assisting with claims and providing ongoing compliance guidance. She said her agency runs annual reviews with city staff, analyzes loss ratios and plan design, and bids to all major carriers each year to seek savings.
Council members thanked the broker for responsiveness to employees but pressed for added transparency about broker fees and asked how the city can ensure it is getting the best market terms. Drapalski pointed to Florida law requiring broker-fee disclosure on quotes and said fees typically ranged from about 2% to 6% or a flat amount depending on carrier; she offered to provide the council with specific contract figures.
Council members and the broker discussed potential cost containment tools — plan-design changes, higher deductibles, targeted pharmacy-management strategies and employee education — while acknowledging trade-offs for lower-income workers. Drapalski said the city’s loss ratio had exceeded 100% in recent years and urged continued, active negotiation with carriers and education for employees about prescription costs.
Next steps: Drapalski said she expects initial renewal numbers in early to mid-July and offered to return for additional briefings and employee education sessions.
