HomeMy WebLinkAboutHealth Insurance and other benefits Presentation to City Council 2026City of Rexburg
Insurance 2026
Select Health Insurance Experience
2025 January thru June
Medical/Rx Loss Ratio with Admin included 119%(77% in prior year period)
Large claimants up 32% compared to prior year period
Medical Claims increased 59% over prior year period
Rx Claims increased 77% over prior year period
Brand Name prescriptions account for 8.3% of scripts, but 85% of cost
Select Health Insurance
2026 Renewal
Employee enrollment count dropping by 27 with transition of Fire
Department to Fire District
12.6% Increase in Health Premiums (started at over 30% and negotiated down to 12.6%)
No changes to Health Plan Benefits
Deduction Increase of 7% for employer and 12% employee average recommended
Increased Cost for Family Monthly
$199.15 Monthly/$2390 Annually for employer
$41.65 Monthly/$500 Annually for employee
Employee would continue to pay 15% of the total cost for health and dental insurance
Dental Insurance and Vision
Dental renewal rates not received yet, but estimating a 6%
increase in our model with no change to plan benefits
Can come back to City Council if comes back at more than
10% increase
2026 premiums would be approximately $167,800 with no
premium increase and $184,600 with a 10% increase
Vision Benefits and rates have not come back yet, but
estimating a 5% increase in our model for same vision plan
2026 premium would be approximately $36,200 with no
premium increase and $38,100 with a 5% increase
COLA vs Insurance Premium
Increase Example
Employee $50,000 Annual Salary
With 2.42% COLA increase in Annual Pay of $1,210
New Annual Salary $51,210
Family Insurance Coverage 2026 = 12% increase in
employee deduction
Increase $41.65 Monthly/$500 Annually
Increase in pay annually after premium increase applied $710
Motion From City Council Requested
Move Forward with recommended plan changes and rates
Move Forward with Budgeted 7% Increase with no Budget
Adjustment for health insurance
Hold Open Enrollment meetings on the following dates:
November 5, 2025 9 AM
November 6, 2025 4 PM
City Hall Council Chamber
OPEN ENROLLMENT PERIOD -November 5-14, 2025