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Commission authorizes 2026 health-insurance renewal after 16.2% Blue Cross increase
Summary
The commission approved a 2026 renewal with Blue Cross Blue Shield of Kansas after staff reported a 16.2% renewal increase; staff recommended modest employee-premium adjustments and use of the city's insurance reserve (staff said the reserve exceeds $500,000) to cover the remainder.
City Manager Mark Westhoff told the commission that Blue Cross Blue Shield of Kansas submitted a 16.2% renewal for 2026. Westhoff said staff budgeted a 5% increase but the renewal came in significantly higher, and recommended modest employee-premium increases (about $10 to $40 per month depending on plan) combined with a transfer from the city's insurance reserve to cover the remaining projected shortfall.
Westhoff said the city's insurance reserve has "over $500,000" and staff estimated a remaining one-time cost of roughly $172,559 to be covered from that reserve (the transcript also includes a figure read aloud as $172,005.59). Commissioners discussed timing of employee notification and strategies to address provider-market decisions for 2027; the commission moved, seconded and approved authorization for the city manager to sign renewal documents with Gallagher, BCBSK and other vendors.
