The Bedford City Council meeting on August 12, 2025, focused on the renewal of employee medical and dental insurance benefits for the upcoming fiscal year. Human Resources Director Stephanie Ayers and consultant Andrew Weager from HUB presented the recommendations for the 2025-2026 benefit plans, which will take effect on October 1, 2025.

The city is currently contracted with Cigna for medical insurance, having switched from Aetna last year. This transition resulted in a 3.8% decrease in medical premiums. For the upcoming year, Cigna has proposed an 11.8% increase in premiums, slightly below the anticipated 12% increase due to a rate cap established in the previous contract. Without this cap, the city could have faced a potential 30% increase.

Weager highlighted that the city’s current loss ratio is at 92%, which is above the target range of 80-85%. This indicates that claims are exceeding the premiums paid, prompting the need for a premium increase. The proposed changes include an increase in deductibles for the high deductible health plan, which will rise to $3,300 for individuals and $6,600 for families, in accordance with IRS regulations. However, no other significant changes to the benefits are recommended.

The city has not passed a premium increase onto employees for over seven years, but this year, some cost-sharing will be implemented. Employees will see a monthly cost increase for the high deductible health plan, with charges of $20 for individual coverage and up to $90 for family coverage. Despite these changes, the city will continue to cover approximately 84.6% of total healthcare costs, which remains competitive compared to other municipalities.

In addition to the insurance renewal, Cigna will provide a $25,000 wellness fund and a $10,000 communication fund to support employee wellness initiatives. The city is also introducing a new patient advocacy hotline to assist employees with healthcare-related inquiries.

The council is expected to vote on the resolution to authorize the city manager to finalize the agreement with Cigna in the coming weeks, ensuring that employees continue to receive comprehensive medical and dental benefits.