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Agenda Item: 7(a) |
Prepared By: Casey Lucius, Ph.D. Assistant City Manager |
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Business: Consent Agenda Item |
Department: Executive |
Subject:
Title
Renewal of Employee Insurance Plans Representing a 6% Increase in Health Insurance in the Amount of $192.850, and a 15.3% Increase in Dental Insurance in the Amount of $3,435 - Casey Lucius, Ph.D., Assistant City Manager
Body
BACKGROUND:
Attached for the City Council’s approval are the annual renewals for employee health, dental, vision, life, and disability insurance.
Annually our Agent of Record, The Gehring Group, Inc. negotiate on behalf of the City and obtain quotes, evaluate the costs versus the coverage, and give the City their recommendations.
EMPLOYEE INSURANCE RENEWAL
The premium rate for health insurance has increased by 6% for the upcoming year, an increase of $192,850 for the City. Initially Cigna presented the City with a 15% increase, but Gehring Group negotiated a 6% increase even with City claims having increased 11.7%.
Previously the City purchased Dental and Vision Insurance through The Standard, but their proposed increases were 31.7% for dental and 23.1% for vision. The Gehring Group negotiated better rates with Cigna, so the City will change insurance providers for Vision and Dental. This decision was supported by the employees through an employee survey. The premium rate for the dental insurance has increased by 15.3%. The vision insurance premiums will remain the same.
The rate for life insurance, short-term and long-term disability remain the same for FY26. The budget is allocated to each department and is sufficient to fund the premium as presented.
FUNDING SOURCE / FISCAL IMPACT:
A health insurance premium increase of 6%, represents approximately a $192,850 annual increase to the City. A dental insurance premium increase of 8%, represents approximately a $3,435 annual increase to the City. The increase was budgeted city-wide in the approved FY26 budget.
RECOMMENDATION:
Authorize the City Manager to execute the renewals for employee health, dental, vision, life, and disability insurance.
POTENTIAL MOTION: “I move approval of the employee insurance plans.”