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Chamblee says switch to UHC reduced 2026 health benefit spike from 31% to about 7%
Summary
Budget staff told the council a previously projected 31% increase in health benefit costs if remaining with Cigna was substantially reduced after switching carriers to UHC, lowering the expected increase to roughly 7% for 2026.
During the budget presentation, staff described a sizable health insurance cost increase that would have occurred had the city remained with its prior carrier. “This year, the cost increase would have been 31% to stick with what we had with Cigna,” Kryskis said. After the council approved a change in carriers to UnitedHealthcare (UHC) a few months earlier, Kryskis said that step "significantly minimized the budget impact" and staff now projects about a 7% increase for 2026.
The change reduced pressure on the general fund though Kryskis said other cost pressures remain, including increases in utilities, technology and personnel tied to new facilities. The council did not take a formal vote on benefit changes during this hearing; staff presented the plan as part of the overall budget package.
