Medina renews employee health plan with Medical Mutual amid roughly 9% premium increase

Medina — The finance committee approved renewing the city’s employee health insurance with the incumbent carrier, Medical Mutual, after staff said market pressure initially produced higher bids and negotiations led to a renewal offer roughly 9% above current rates.

The mayor explained the market produced increases in the range of 9–13% and staff negotiated Medical Mutual down to an approximate 9% increase; dental renewal was negotiated to 5% above the current rate. The mayor and city broker cautioned that switching carriers could produce short-term savings but risk “renewal shock” in future years and could eliminate wellness-credit savings tied to the incumbent.

The mayor described $63,000 in wellness credits the city earned for next year and indicated switching carriers would both forfeit those credits and add about $42,000 in annual wellness-program costs, citing staff estimates. Committee members noted total city contributions toward employee health premiums are currently near $3,000,000 and that a 9–10% rise would increase that outlay by roughly $250,000–$300,000.

Keith and other staff recommended renewing with Medical Mutual to maintain continuity of care for employees and preserve the wellness program benefits; the committee approved renewal with an emergency clause to implement the new coverage by Dec. 1.