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Council votes to absorb 13.2% Local Choice health‑insurance premium increase for employees
Summary
Benefits consultant presented a 13.2% increase to the Local Choice health‑insurance renewal and pharmacy changes; the council directed the administration to absorb the full premium increase for employees and retain current plan design.
Mary Jones of 1Digital presented the Local Choice renewal for the city's employee health insurance and described a proposed 13.2% premium increase effective July 1, 2026. Her presentation highlighted proposed pharmacy changes (a $150 deductible on tiers 2–4, a 20% coinsurance up to $200 per prescription for Tier 4, and restrictions on GLP‑1 coverage for weight‑loss uses), and noted the Employee Assistance Program would be expanded to make EAP services available to all employees regardless of enrollment.
Two options were described: option A, which would share the premium increase with employees; and option B, under which the city would absorb the full $830,009.88 increase. The administration recommended option B. "Based off of our conversations with the administration...our recommendation is to go with option B," Jones said. Councilmember Jones moved to have the city absorb the full increase; Vice Mayor Hill seconded, and the motion carried on roll call with all members recorded as aye.
