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Sparks to offer two alternative health-plan options for city employees starting Jan. 1, 2027
Summary
Council approved staff-recommended Plan Offering B that retains the current PPO 200 plan and adds two options: a PPO 400 (higher deductible with city-funded FSA contribution) and a high-deductible HSA-compatible plan; staff emphasized the city's contribution to total compensation will not change.
Sparks City Council approved changes to the city group health plan that will offer employees a choice of three plan designs beginning Jan. 1, 2027. The group health committee recommended "Plan offering B," which preserves the existing PPO 200 plan and adds: (1) a PPO 400 option with higher deductible and lower premiums plus a city contribution to an FSA for employees who choose it; and (2) a high-deductible health plan option paired with a city HSA contribution.
Shauna Halterman, Human Resources director, explained the rationale: "Employees stated that they valued the city's health insurance, but those who had little utilization of the health insurance wanted some options besides the current single plan." She outlined sample numbers: the city would contribute amounts for FSA or HSA funding (presented in the packet as examples such as $1,128 for FSA under Option 1 and $1,992 for HSA under Option 2 for employee-only coverage) and emphasized that the city's overall contribution in total-compensation comparisons would not change.
Staff said they held multiple employee education sessions in June and that the group health committee voted to recommend the plan on July 9. Councilors praised the options as providing choice and voted unanimously to adopt the change; open enrollment guidance and individualized counseling will follow so employees can decide what best fits their family and medical needs.
