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Consultants tell Tequesta council health and property insurance costs are rising; August renewals expected
Summary
Consultants briefed the village on employee health coverage and property/casualty risk, forecasting higher health and pharmacy costs and modest property‑market easing; staff said Florida Blue renewal will arrive this week and council will consider approval in August.
Consultants for the Village of Tequesta reviewed employee benefits and property/casualty insurance at a June 29 workshop, warning that national and market trends continue to push medical and pharmacy costs higher while property markets show some softening.
Christian Bergstrom, a senior benefits consultant with the consulting team, told council that prescription drug costs and behavioral health were major drivers and that large claimants had increased in 2025. “Prescription drugs, the GLP‑1s in particular... are still raising costs,” he said, and reported industry forecasts of mid‑to‑high single‑digit to double‑digit cost increases in the near term. Christian said the village should expect an initial renewal from Florida Blue this week and that staff will bring renewal options to council for approval in August.
Rodney Lewis, the director of risk services, gave an overview of the village’s property and casualty program, noting about $37–38 million in assets covered under the Florida Municipal Insurance Trust and current deductible structures (example: $100,000 for most perils; 5% for windstorm). He flagged two recent workers’‑compensation claims that raised the village’s modification factor and said workers’‑compensation premiums will push upward given payroll increases and claim history. “We are looking at about a 9% increase versus the 20% credit that you've been getting,” he said, citing recent claim payments.
Council members asked whether cost reductions of roughly 10% were feasible and whether options such as reducing coverage levels, selectively self‑insuring movable equipment, or changing benefit designs might yield savings. Consultants said those options are possible in some combinations but stressed tradeoffs — for example, reduced coverage may increase risk exposure or not produce commensurate premium savings — and recommended staff return to council with a set of modeled options ahead of the August approval.
Staff said they will continue negotiations with carriers and present recommended actions at the August meeting.
