HomeMy WebLinkAboutHealth Insurance 2027 RexburgCity of Rexburg
Insurance 2027
Select Health Insurance Experience
2026 January thru June
Medical/Rx Loss Ratio with Admin included 135% (119% in prior year period)
Large claimants up 80% compared to prior year period
Medical and Pharmacy Claims Increased 49% (approximately $1.4 M)
over prior year period
Medical Claims increased 60%
Rx Claims increased 1%
Brand Name prescriptions account for 9.7% of scripts, but 86.6% of cost
Select Health Insurance
2027 Renewal
Employee enrollment count 119 for health and 122 for dental
33% Increase in Health Premiums (started at over 42% and negotiated down to 33%)
No substantial changes to Health Plan Benefits
Deduction Increase of 19.5% for employer and 21.4% employee average recommended
Increased Cost for Family Monthly
$482.78 Monthly/$5793 Annually for employer
$88.78 Monthly/$1065 Annually for employee
Employee would pay 14% of the total cost for health and dental insurance, down from
15% from the prior year
Dental Insurance and Vision and Other
Dental Benefits No Plan Changes
Agent Negotiated rate increase down from 19% to 17%)
2027 premiums would be approximately $203,000 (Increase of $29,485)
Vision Benefits No Change in rates or coverage
2026 premium would be approximately $40,000
Basic Life, AD&D, and Dependent Life no plan changes
Agent negotiated rates down 16% for savings of $3,235 ($16,953 Annual Premium)
Long Term Disability no plan changes
Agent negotiated rates down 20% for savings of $5,168 ($20,670 Annual Premium)
COLA vs Insurance Premium
Increase Example
This will vary based on annual wage and insurance coverage selected
Employees can calculate or ask HR to help calculate
Example:Employee $55,000 Gross Annual Salary
With 2.73% COLA increase in Annual Pay of $1,502
New Annual Gross Salary $56,502
Family Health Insurance Coverage 2027 = 22.11% increase in employee
deduction
Increase $88.78 Monthly/$1065 Annually
Increase in pay annually after premium increase applied $437
Motion From City Council Requested
Move Forward with recommended plan changes and rates
Move Forward with 19.5% Employer Increase for Health
Insurance (Budget 22.5%) with Budget Adjustment to put
money back into contingency
Hold Open Enrollment meetings on the following dates:
November 4, 2026 9 AM or 2 PM
City Hall Council Chamber
OPEN ENROLLMENT PERIOD -November 9-18, 2026