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Council adopts KMIT Blue Edge health plan for 2026 with a 10.75% premium increase
Summary
Council approved joining the KMIT Association Health Plan under the Blue Edge option, a 10.75% increase over 2025, with no change to employee premiums; staff had budgeted a 15% increase for 2026.
City staff presented two KMIT options for the 2026 plan year — a 10.75% increase (KMIT Option 1) and a 39.63% increase (Option 2) — and recommended the KMIT Blue Edge plan under Option 1. Administration had budgeted for a 15% increase in the 2026 operating budget to create a conservative estimate.
Councilmember Tanner Corwin moved to approve KMIT Option 1 with Blue Cross Blue Shield as the underwriter and Freedom Claims Management as the third-party administrator; Councilmember Rebecca Van Der Wege seconded the motion, which passed 8-0 by roll call vote. The minutes record no changes to employee premiums; current employee premiums were listed (Employee Only $95/month; Family $275/month). Staff noted joining KMIT establishes a 20% cap on annual increases for 2027 and that once a member joins the KMIT Association, removal is not permitted by the association’s rules.
Next steps: administration will enroll city employees in the selected plan and monitor claims experience under KMIT.
