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STAFF REPORT <br />DATE: October 21, 2025 <br />CONSENT <br />TO: Mayor and Councilmembers <br />FROM: Jennifer Doyle, Administrative Services Coordinator <br />AGENDA ITEM: 2026 Benefit Renewal and Changes <br />CORE STRATEGIES: <br />☐Vibrant, inclusive, connected community ☒Efficient, reliable, innovative services <br />☒Responsive, transparent, adaptive governance ☐Balanced Finances now and future <br />☐Managed Growth ☐Resilient Infrastructure <br />BACKGROUND: Staff has received the 2026 renewal rates from Minnesota Public Employee Insurance <br />Program (PEIP) - medical insurance. Staff worked with Grant Dattilo, DCI broker, to receive proposals <br />for the private option for the MN Paid Leave (MNPL). We also accepted proposals for our Short-Term <br />Disability, (STD), Long-Term Disability (LTD), Life, Dental, and Vision plans knowing any MNPL <br />provider would most likely require purchasing ancillary benefits through them. An open enrollment <br />meeting for employees is scheduled for October 28th. <br />ISSUE BEFORE COUNCIL: <br />Should Council approve the insurance renewal, change in provider and employer contributions? <br />PROPOSAL DETAILS/ANALYSIS: <br />The 2026 renewal rate for medical insurance coverage from Minnesota Public Employee Program (PEIP) <br />increased just under 10% which was expected given recent trends. PEIP is the health insurance offered to <br />non-represented employees working at least 30 hours per week. It includes two different plans, the High <br />Option or the HSA Option plan, with two insurance carrier options to allow for maximum flexibility in <br />meeting staff needs. <br />In 2025, the City paid 100% of the premiums for the single coverage plans and a certain percentage of the <br />premiums for the family plans depending on which plan was elected. Staff is recommending continuing <br />this cost sharing for 2026. The new rates can be seen in the “2026 LE Benefits Rates” sheet attached. Staff <br />recommend keeping the monthly City contributions to the Health Savings Account coinciding with the <br />HSA plans at the current monthly rates of $125 for employee only and $250 for family coverage. <br />As supported at the October 14th Workshop we will be partnering with Mutual of Omaha for STD, LTD, <br />Life, Dental, Vision and Minnesota Paid Leave (MNPL).