STRATEGIC PRIORITY: Fiscally Sound
AGENDA DATE: September 17, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Department of Human Resources
EXECUTIVE: Jack Ireland
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SUBJECT
Title
Authorize (1) approval of the proposed plan design effective January 1, 2026; and (2) approval of the proposed health coverage plans and premium rates increase of 5% for PCP and HSA plans, 15% for the Copay plan, and 5% for all Pre-65 Retiree plans for all of the separate health benefit plans for employees, retirees, and their families - Financing: Employee Benefits Fund ($146,104,603); Revenue: City Employee/Retiree Contributions ($87,125,403) (see Fiscal Information)
Body
BACKGROUND
The 2026 benefit plan overview and rates were submitted to Government Performance Financial Management via memorandum on June 10, 2025 to City Council.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 24, 2021, the City Council approval of the proposed plan design changes effective December 31, 2021 and approval of the proposed health coverage contribution and premium rates by Resolution No. 21-1694.
On September 22, 2021, the City Council approval of the proposed plan design changes effective January 1, 2022 and approval of the proposed health coverage contribution and premium rates by Resolution No. 21-1694.
On September 28, 2022, the City Council approval of the proposed plan design changes effective January 1, 2023 and approval of the proposed health coverage contribution and premium rates by Resolution No. 22-1671.
On September 20, 2023, the City Council approval of the proposed plan design changes effective January 1, 2024 and approval of the proposed health coverage contribution and premium rates by Resolution No. 23-2396.
On September 25, 2024, the City Council approval of the proposed plan design changes effective January 1, 2025 and approval of the proposed health coverage contribution and premium rates by Resolution No. 24-2921.
FISCAL INFORMATION
Total cost based on the number of employee/retiree participants in the plan.
Employee Benefits Fund:
City Contributions - $146,104,603
Employee Contributions - $ 64,662,027
Retiree Contributions - $ 22,463,376
Total Revenue* $233,230,006