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Agenda Item: 7(e) |
Prepared By: Diana Snover, Director, Human Resources |
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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 $205,123, and a 12% Increase in Dental Insurance in the Amount of $3,126 - Diana Snover, Director, Human Resources
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 $205,123 for the City.
The premium rate for dental insurance was initially released at a renewal increase of approximately 25%, however, following negotiations conducted by Gehring Group, the renewal was reduced from approximately 25% to 12%, resulting in an annual premium increase of $3,126 for the City.
The rate for life insurance, short-term and long-term disability remain the same for FY26.
FUNDING SOURCE / FISCAL IMPACT:
A health insurance premium increase of 6% represents approximately a $205,123 annual increase to the City. A dental insurance premium increase of 12% represents approximately a $3,126 annual increase to the City. The increase was budgeted city-wide in the approved FY27 budget.
RECOMMENDATION:
Authorize the Director, Human Resources to execute the renewals for employee health, dental, vision, life, and disability insurance.
POTENTIAL MOTION: “I move approval of the employee insurance plans.”