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Rising health‑benefit claims could cost Spokane about $9M in 2027, staff say
Summary
Staff told council claims have increased about 19% since 2023 and actuarial breakeven is roughly 27% for 2027; that 27% scenario was estimated to cost the organization about $9 million and reserves dropped from $13.5M to $3M last year.
City staff said the municipality is self‑insured and has seen claims rise significantly; presenters reported average claims increased about 19% since 2023. An actuarial breakeven estimate for 2027 was cited at roughly 27% and staff said implementing a 27% change would cost the organization about $9,000,000 spread across employer and employee contributions.
Presenters noted reserves fell from approximately $13.5 million at the start of the prior year to about $3 million at year‑end, driven largely by higher medical claims and pharmaceutical costs. Staff said they are in active conversations with union bargaining units and their broker (Alliant) about plan options, but cautioned that many pool or outside options may offer lower levels of service while producing similar long‑term rate pressure.
