ITEM TITLE:
#26-17 - Approval of Annual Renewal of City/School Health Insurance Benefit Plan for Period Beginning 4/1/2026
SUBMITTED BY: Rhea E Cragun, Director Human Resources
FISCAL NOTES:
Expenditure Required: $5.5M
Unencumbered Balance: $5.6M
Funding Source: Cost code 41300, pro-rated among all staffed departments
RECOMMENDATION:
Approve Resolution #26-17approving the annual renewal of City/School health insurance benefit plan for period beginning 4/1/2026
SUMMARY STATEMENT:
The attached resolution formalizes the annual renewal of the health insurance benefit plan and authorizes the City Manager or designee to sign any corresponding paperwork.
• This health insurance renewal comprises a +10.7% increase
• The 2026 City of Valdez Personnel Budget anticipated this health insurance renewal due to nationwide trend of rising healthcare costs and has adequate appropriations to absorb the costs.
• Consultant fee is reflected in City plan for shared broker services between City of Valdez and Valdez City Schools.
o Page 8 of Renewal Workbook outlines PEPM Composite and Annual Percent Change
• Renewal Premium Change:
o City +10.7%: total monthly $3,293.21 to $3,646.62
§ Employer monthly: $ 3,161.48 to $3,500.75
§ Employee monthly: $ 131.73 to $145.87
Plan Changes:
• Switching Medical Management from Personify to Meritain results in a 1.8% savings
The schools have separately reviewed and approved their plan renewal specifications.
• School: +20%