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City weighs models for covering a projected 5.1% health‑insurance premium rise
Summary
Staff presented four options for absorbing an estimated 5.1% increase in health premiums — from city covering 100% to a 50/50 split — with city cost impacts ranging from about $1.47M to $1.23M depending on the split; staff noted implications for adding an employee+spouse tier if the city covers more of the increase.
Benefits staff presented a projected 5.1% increase in calendar‑2025 health‑insurance premiums and four cost‑sharing models: city picks up 100% of the increase (cost to city ~$1.47M); city follows historical split (~81% city / 19% employee); city 80% / employees 20%; or city 50% / employees 50% (lowest city cost shown ~$1.23M). Staff noted an estimated 80% of permanent full‑time employees participate in the plan.
Council asked comparative questions about other localities and whether the school division picks up 100% (staff said schools have discussed a larger pick‑up). Benefits staff said if the city accepts the 100% option it could add an employee+spouse tier for staff; otherwise the existing tier structure (employee, employee+minor, family) would remain. Council asked staff to provide final participant counts and comparative local practice for the manager’s recommended budget.
