Committee approves 2027 employee benefits program; members ask for rate reviews and workforce survey

The committee voted to approve the Personnel Department’s 2027 employee benefits program after a lengthy staff presentation and questions from members about insurance rate increases and provider competition. Staff reported that changes made in 2026 moved the city to new carriers (Blue Shield and UnitedHealthCare in place of Anthem) and that 2027 rate caps — including single‑digit and low‑double‑digit figures cited in staff materials — could increase out‑of‑pocket costs for a significant share of employees.

Paul Markowski of the Personnel Department said about 40% of employees are enrolled in Blue Shield or UnitedHealthcare plans and that roughly half of those enrollees — about 20% of the total workforce — could see higher paycheck deductions under the current rate caps. "About 40% of employees have Blue Shield and UnitedHealthCare. Out of that 40%, about half of them are going to have a potential increase in cost out of their paycheck," Markowski told the committee.

Members pressed staff on timelines for renegotiation and possible rebidding. Staff said carriers have agreed to re‑examine their rates once additional claims experience becomes available next month, and that the current contracts cover 2027 but could be rebid for 2028 if necessary. The committee recommended the Personnel Department track claims experience, reopen negotiations if warranted before open enrollment, and conduct a workforce survey to better understand employee priorities for future procurement.

The committee also discussed administrative changes to health savings account (HSA) administration: the Personnel Department said it will take over HSA administration from Blue Shield to allow employees to make payroll contributions and have a more flexible HSA product.

What happens next: staff will monitor claims experience and report back before open enrollment; the committee approved the 2027 plan and signaled that a rebid for 2028 remains under consideration if the 2027 negotiations do not improve cost outcomes for employees.