Council approves employee benefits renewal: Cigna medical up 11%, dental up 9%; city to hold dependent contributions

The Oldsmar City Council approved the city’s employee insurance renewals for fiscal year 2025–26 on Aug. 5, accepting Cigna’s proposed 11% increase for medical coverage and a 9% increase for dental coverage. Vision benefits with EyeMed and the employee assistance program, AD&D, long-term disability and voluntary supplemental life insurance through The Standard were approved at a 0% renewal and include rate guarantees through Sept. 30, 2026.
City staff reported the renewal reflects general medical inflation and the city’s experience of unfavorable claims and high monthly loss ratios. Staff recommended the city absorb the increase in employee dependent coverage contributions so that dependent contribution amounts remain the same as in FY 2024–25. The city also will change payroll insurance deduction frequency to 24 paychecks per year (twice monthly) instead of 26; staff said this alters the per-paycheck deduction amount though employees will still receive 26 paychecks annually.
An Administrative staff member explained scheduling details: "So we have 2 checks out of the year that is the third check of the month. And so there's 1 in May and 1 in October of the next fiscal year, October and then May." The council approved the renewal by voice vote.
Staff also recommended continuing a city-funded $1,000 health reimbursement arrangement contribution for employees enrolled in the medical plan to assist with out-of-pocket medical expenses. The Gehring Group representative was present for questions and staff said the plan documents include details of the renewal and rate guarantees.