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Staff outlines employee-insurance cost pressures and budget timeline for FY2027
Summary
City staff reported a projected ~14% increase for the Blue Cross Blue Shield PPO employee plan and proposed switching the base plan to an HMO to reduce the city's cost; staff estimated the full cost of the 14% PPO increase at roughly $552,000 and gave a timeline for the proposed budget to be posted Aug. 5 with council action in August.
City staff briefed council on employee health-insurance options for FY2027 and the budget timeline. The presenter said the city's insurance consultant projected approximately a 14.23% increase in the current Blue Cross Blue Shield PPO policies; he summarized contribution levels for employee-only and dependent coverage and estimated the 14% increase would amount to roughly $552,000 to the city.
To reduce cost pressure, staff proposed changing the base plan from a PPO to an HMO while maintaining the PPO as an employee option at additional employee cost. Staff said the proposed budget will be posted on the city website on Aug. 5, the regular meeting is Aug. 11 (when the council will receive the proposed budget), and a budget workshop is scheduled for Aug. 18.
