TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve the Renewal of Employee Health Insurance and Benefits Program for the Fiscal Year 2026-2027 Plan Year, Including Medical Stop Loss, Dental, Vision, Employee Assistance Program, Short-Term Disability, Life Insurance, and Administration Costs for COBRA, Flexible Spending Accounts and Health Savings Accounts, With The Gehring Group, Inc., a Brown and Brown, Inc. Company, Serving as the City of North Port’s Benefits Broker, and Authorize the City Manager to Execute all Documents Necessary to Implement the Renewal.
Recommended Action
Option 1: Approve the renewal of employee health insurance and benefits program for the fiscal year 2026-2027 plan year, including medical stop loss, dental, vision, employee assistance program, short-term disability, life insurance, and administration costs for COBRA, flexible spending accounts and health savings accounts, with The Gehring Group, Inc., a Brown and Brown, Inc. company, serving as the City of North Port’s Benefits Broker, and authorize the City Manager to execute all documents necessary to implement the renewal.
City Commission Options
Option 1: Approve the renewal of employee health insurance and benefits program for the fiscal year 2026-2027 plan year, including medical stop loss, dental, vision, employee assistance program, short-term disability, life insurance, and administration costs for COBRA, flexible spending accounts and health savings accounts, with The Gehring Group, Inc., a Brown and Brown, Inc. company, serving as the City of North Port’s Benefits Broker, and authorize the City Manager to execute all documents necessary to implement the renewal.
• Pros: Approval of the Employee Health Insurance and Benefits Program renewal ensures uninterrupted insurance coverage for eligible employees and their dependents while maintaining a competitive benefits package that supports employee recruitment, retention, and overall well-being. It also enables the City to meet carrier renewal deadlines and continue providing comprehensive medical stop loss, dental, vision, employee assistance program, short-term disability, life insurance, and administration costs for COBRA, flexible spending accounts and health savings accounts for employees and their dependents.
• Cons: Denial of the Employee Health Insurance and Benefits Program renewal could result in delays or disruptions to employee and dependent insurance coverage, limit the City’s ability to meet carrier enrollment deadlines, and negatively impact employee recruitment, retention, and morale.
Option 2: Denial of the proposed renewal of the Employee Health Insurance and Benefits Program for Fiscal Year 2026-2027, including medical stop loss, dental, vision, employee assistance program, short-term disability, life insurance, and associated administrative costs for COBRA, flexible spending accounts, and health savings accounts.
• Pros: Denial would provide additional time before authorizing the renewal; however, this benefit is very limited. The City’s broker has already completed the renewal process and evaluated the available market options, including plans with guaranteed pricing.
• Cons: Denial of the renewal could result in a disruption or delay in employee health and benefit coverage if the renewal is not approved within the required timeframe. This could create uncertainty for employees, impact access to health care and other benefits, and create additional administrative challenges for the City. Because the renewal process has already been completed by the City’s broker, denial at this stage provides limited practical benefit while creating a potential risk to the continuity of coverage for the Fiscal Year 2026-2027 plan year.
Background Information
The City of North Port operates a comprehensive Employee Health and Benefits Program designed to provide employees and eligible dependents with access to medical, dental, vision, and other ancillary benefits. The City transitioned to a self-insured medical plan on October 1, 2018, to provide the City with greater control over medical claims costs and the ability to manage the plan based on the City's actual claims experience. Since transitioning to self-insurance, this approach has provided the City with opportunities to achieve savings in medical costs and renewal premiums over time, while maintaining a competitive employee benefits package that supports the City's recruitment and retention efforts.
The City utilizes The Gehring Group, Inc., a Brown and Brown, Inc. company as its employee benefits broker and consultant. As part of the annual renewal process, the broker evaluates the City's benefit program and goes to market to solicit and negotiate coverage and pricing on the City's behalf. This process includes obtaining proposals for medical stop loss coverage, as well as dental and vision insurance and other applicable benefit programs. The annual market review allows the City to evaluate available coverage and pricing and maintain a competitive and sustainable benefits program.
In addition to medical, dental, and vision coverage, the City's Employee Health and Benefits Program includes an employee assistance program, short-term disability, life insurance, and administrative services associated with COBRA, flexible spending accounts, and health savings accounts.
The budgeted amount reflects anticipated costs associated with employee and dependent participation in the City's benefit programs, which may fluctuate throughout the plan year based on enrollment changes and qualifying life events. Continued renewal and administration of these benefits support the City's compliance with applicable federal and state requirements governing employer-sponsored health and welfare benefit programs.
Strategic Plan Pillar
Good Governance
Financial Impact
The total budgeted amount for the Employee Health Insurance and Benefits Program in fiscal year 2027 is $6,104,950.00. The City is authorized pursuant to Section 112.08, Florida Statutes, to provide group insurance benefits for its employees and eligible dependents and to pay all or a portion of the associated premiums.
Account Number 540-0900-513-3105: $4,636,300.00
Account Number 810-0900-513-4900: $1,468,650.00
Procurement
Employee Health Insurance and Benefits Program was procured through an Insurance Broker pursuant to Chapter 2 - Administration, Article VIII - Procurement, Section 2-405 - Competitive Sealed Request for Process of the Code of the City of North Port, Florida.
Attachments:
1. Program Cost Summary - 540
2. Program Cost Summary - 810
3. Procurement Documents
Prepared by: Sandy Knowles, Assistant Director Human Resource and Risk Management
Department Director: Christine McDade, Director Human Resources