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City negotiates lower insurance renewal; staff proposes 90/10 city/employee split and tiered plans

City of Berlin — Committee of the Whole · August 5, 2026
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Summary

Facing an initial 28% renewal quote, the city's broker reduced the proposed increase to about 11.9%. Staff proposed moving to a 90% city /10% employee funding split (matching police contract) and offering tiered plan options with employee buy-ups for broader coverage.

Staff reported the city's employee health insurance renewal was initially quoted at a 28% increase by the broker; through negotiations they reduced that to roughly 11.9%. Staff said the city currently funds a large share of premiums and proposed moving to a 90% city /10% employee contribution structure, mirroring the police contract's approach, while offering multiple plan tiers (focused, broad, select) where an employee choosing a higher-cost plan would pay the difference.

Staff noted the city’s single-plan deductible is currently $3,500 and the family deductible is approximately $7,000; final plan details and a formal recommendation will return to the council in advance of the October renewal. Council members asked for more detailed numbers and confirmed staff will bring back a finalized proposal and fee structure for review.