Title
Consider a resolution approving the FY 2025-2026 Self-Funded Health Insurance Budget.
Body
The City uses a self-insurance risk fund to provide health, vision, and dental coverage for employees. The City has used self-insurance to effectively manage costs for these benefits since 1993. The City regularly updates the plan to address the needs of employees and manage costs by reviewing the marketplace and updating the plan design.
The budget for FY 2025-2026 includes funds to operate the Health Clinic, administer the programs, stop loss/reinsurance, claims, and other insurance related costs. The budget is covered by all employee and employer contributions, stop loss reimbursements, fund balance, and other revenues available to cover expenses. Reserves for post-employment employee insurance continue to be met with the proposed budget.
For 2025-2026, the City will contribute $1,257 for medical plans and $20 for dental plans per covered employee per month. These costs are included in the department budgets and reflected in the FY 2026 budget adopted by Council on September 11, 2025. Staff will continue to closely monitor claims and program costs during the next year.