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Home My WebLink About168-26 RESOLUTION Page 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 168-26 File Number: 2026-2007 A RESOLUTION TO APPROVE THE 2027 EMPLOYEE BENEFITS PACKAGE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the 2027 employee benefits package as recommended in the staff memorandum attached to this Resolution. PASSED and APPROVED on July 21, 2026 Approved: _______________________________ Molly Rawn, Mayor Attest: ___________________________________ Courtney Spohn, Senior Deputy City Clerk Treasurer Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2026-2007 MEETING OF JULY 21, 2026 TO: Mayor Rawn and City Council THROUGH: Keith Macedo, Chief of Staff FROM: Missy Hutcheson, Human Resources Director SUBJECT: 2027 Employee Benefits Renewal RECOMMENDATION: Staff recommend City Council approve the employee benefits renewal package for 2027 as outlined below and in the attached presentation. BACKGROUND: Staff and Brown & Brown, the City’s benefits broker, have reviewed the annual renewals for employee insurance plans. Employee benefits renewals are brought forward at this time to ensure the annual open enrollment may proceed according to schedule. DISCUSSION: Health Insurance The one-year look back period of the City’s health claims shows a 109% utilization rate of claims paid versus premiums paid. The renewal with Arkansas Blue Cross Blue Shield (BCBS) resulted in a 7.1% increase to the high deductible health plan (HDHP) and 7.9% increase to the Preferred Provider Organization plan (PPO). The IRS increased the high deductible health plan (HDHP) minimum deductible limits for embedded deductible plans for 2027, resulting in an increase to the HDHP deductible of $100 to $3,500 (individual) and $200 to $7,000 (family). 2027 HSA annual contribution maximums for an individual will be $4,500 (up from $4,400) and for a family $9,000 (up from $8,750). Dental Insurance Renew with AR BCBS, no plan or rate changes. Vision Insurance Renew with AR BCBS, no plan or rate changes. City Paid Life/AD&D, Voluntary Life/AD&D and LTD Benefits Renew these products with USAble through AR BCBS with no changes. Voluntary Short Term Disability (STD) Benefits Renew with American Fidelity with no changes. Flexible Spending Accounts Renew with American Fidelity as administrator with no changes. Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov Health Savings Accounts Renew with First Security Bank as administrator with no changes. COBRA Administration Renew with Consolidated Admin Services (CAS) as administrator. Employee Assistance Program Renew with Bree Health with no increase to rate ($1.40 per member per month) paid by the City Supplemental Benefits Paid by Employees Staff recommends continuing to offer additional supplemental benefits to employees through American Fidelity which include: Disability Income Insurance, Accident Only Insurance, Cancer Insurance, Critical Illness Insurance, Life Insurance, AF Term Life Insurance, AF Term 100 Life Insurance, 98.AF Permanent Life Insurance, Hospital Gap Insurance and Short Term Disability Insurance. BUDGET/STAFF IMPACT: The costs of these planned insurance/benefit items are being budgeted in the City’s 2027 budget. ATTACHMENTS: 3. Staff Review Form, 4. BB Presentation-Council 2027 Renewal Final, 5. City of Fayetteville - 2027-2028 Pricing Summary Bree Health EAP Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2026-2007 A RESOLUTION TO APPROVE THE 2027 EMPLOYEE BENEFITS PACKAGE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the 2027 employee benefits package as recommended in the staff memorandum attached to this Resolution. Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Comments: Purchase Order Number: Change Order Number: Previous Ordinance or Resolution # Approval Date: Original Contract Number: Project Number Budget Impact: Fund CitywideXXXX.XXX.XXXX-5108.XX City of Fayetteville Staff Review Form 2026-2007 7/21/2026 Staff recommends City Council approve the 2027 employee benefits renewal package. Action Recommendation: Missy Hutcheson HUMAN RESOURCES (120) Division / Department 6/8/2026 Submitted Date No 5,774,566.49$ -$ V20221130 Budgeted Item? Does item have a direct cost? Is a Budget Adjustment attached? Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget 9,478,412.00$ 3,703,845.51$ Yes No -$ 5,774,566.49$ Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Brown & Brown of Arkansas, Inc.Presented By: Todd Setser Renewal Analysis and Process July 2026 Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Overview - Medical Medical-BCBS •Renewal 7.1% HDHP / 7.9% PPO •Packaged with Dental, Vision, Life, Disability •2021 CY Loss Ratio was 131% •2022 CY Loss Ratio was 111.3% •2023 CY Loss Ratio was 92.74% •2024 CY Loss Ratio was 98.5% •2025 CY Loss Ratio was 102% •2026 YTD through March 109% Vision-BCBS VSP •2027 Rate Hold; no plan changes Dental-BCBS •2027 Rate Hold; no plan changes Base Life & LTD-USAble •2027 Rate Hold; no plan changes FSA-American Fidelity •Continue with administrator HSA-First Security Bank •Continue with current administrator •No Employer contribution changes Cobra-CAS •Continue with current administer Voluntary Benefits-American Fidelity •Renew all benefits with no changes Bree Health Employee Assistance Program •Renew all benefits with no changes •Cost is $1.40 per employee per month BROWN & BROWN | 2 Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Historical Lookback BROWN & BROWN | 3 Renewal Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 7.10% 2.60% 15% Percent of Increase 6.4% 5.6% 20% 3.70% 0% 6% 16.8% 16.8% 4.9% Experience Period Total Claims Premium Paid Loss Ratio 5/1/15 - 4/30/16 $4,322,202 $4,216,666 102.5% 5/1/16 - 4/20/17 $4,576,036 $4,513,431 101.4% 5/1/17 - 4/30/18 $4,713,036 $4,913,154 95.3% 5/1/18 - 4/30/19 $4,831,586 $5,757,503 83.9% 5/1/19 - 4/30/20 $5,455,647 $6,274,795 86.9% 5/1/20 - 4/20/21 $5,719,772 $6,270,906 91.2% 5/1/21 - 4/30/22 $7,289,359 $6,248,761 116.7% 5/1/22 - 4/30/23 $6,897,808 $6,084,374 113.3% 5/1/23-4/30/24 $6,728,829 $7,319,883 92% 5/1/24-4/30/25 $7,923,055 $8,009,406 99% 4/1/25-3/31/26 $8,803,093 $8,042,015 109% Totals $67,260,423 $67,650,894 99.4% Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Medical-HDHP BROWN & BROWN | 4 Deductible change due to IRS revised limit for embedded deductibles Benefit Comparison Eligibility Definition Annual Individual / Family Deductible Deductible Type Coinsurance Annual Out-of-Pocket Maximum Out-of-Network Coinsurance Preventive Benefit RX - Tier 1 / Tier 2 / Tier 3 RX - Specialty RX Mail Order - 90 Day Supply CURRENT Renewal Medical BCBS of Arkansas BCBS of Arkansas In-Network In-Network $3,400 HDHP $3,500 HDHP Non Grandfathered Non Grandfathered Embedded Embedded $3,400 / $6,800 $3,500 / $7,000 All Actively at Work Full Time Employees All Actively at Work Full Time Employees Member pays 20% AD Member pays 20% AD Member pays 0% AD Member pays 0% AD $3,400 / $6,800 $3,500/$7,000 No Charge if In-Network No Charge if In-Network Member pays 0% AD Member pays 0% AD Member pays 0% AD Member pays 0% AD Available Available Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Medical-PPO Plan BROWN & BROWN | 5 Benefit Comparison Eligibility Definition Annual Individual / Family Deductible Deductible Type Coinsurance Annual Out-of-Pocket Maximum Out-of-Network Coinsurance Preventive Benefit RX - Tier 1 / Tier 2 / Tier 3 RX - Specialty RX Mail Order - 90 Day Supply Available Available $150 $150 $10 / $40 / $60 $10 / $40 / $60 No Charge if In-Network No Charge if In-Network Member pays 40% AD Member pays 40% AD Member pays 20% AD Member pays 20% AD $3,000 / $6,000 $3,000 / $6,000 Fulfillment Fulfillment $1,000 / $2,000 $1,000 / $2,000 All Actively at Work Full Time Employees All Actively at Work Full Time Employees In-Network In-Network $1,000 PPO $1,000 PPO Non Grandfathered Non Grandfathered Current Renewal Medical BCBS of Arkansas BCBS of Arkansas Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Health Plan Comparison 2026 vs 2027 BROWN & BROWN | 6 Rate Tier Enrolled 2026 Total Premium 2027 Total Premium 2026 Employee Contribution 2027 Employee Contribution 2027 Employee Increase 2026 Employer Contribution 2027 Employer Contribution 2027 Employer Increase Employee/Employer Cost - Share % Employee Only 27 $958.32 $1,034.02 $244.28 $263.57 $19.29 $714.04 $770.45 $56.41 25.49%/74.51% Employee + Spouse 5 $2,089.62 $2,254.38 $788.82 $851.03 $62.21 $1,300.80 $1,403.35 $102.55 37.75%/62.25% Employe + Child(ren)1 $1,724.94 $1,861.20 $651.16 $702.60 $51.44 $1,073.78 $1,158.60 $84.82 37.75%/62.25% Family 1 $2,844.06 $3,068.74 $1,073.62 $1,158.45 $84.83 $1,770.44 $1,910.29 $139.85 37.75%/62.25% Total Monthly 34 $40,891.74 $44,120.38 $12,264.44 $13,232.59 $968.15 $28,627.30 $30,887.79 $2,260.49 Total Annual $490,700.88 $529,444.56 $147,173.28 $158,791.08 $11,617.80 $343,527.60 $370,653.48 $27,125.88 Total Premium Change $38,743.68 % Change 7.9% Rate Tier Enrolled 2026 Total Premium 2027 Total Premium 2026 Employee Contribution 2027 Employee Contribution 2027 Employee Increase 2026 Employer Contribution 2027 Employer Contribution 2027 Employer Increase Employee/Employer Cost - Share % Employee Only 328 $479.98 $513.94 $67.48 $72.26 $4.78 $412.50 $441.68 $29.18 14.06%/85.94% Employee + Spouse 126 $1,035.22 $1,108.48 $154.04 $164.94 $10.90 $881.18 $943.54 $62.36 14.88%/85.12% Employe + Child(ren)85 $784.18 $839.66 $116.68 $124.94 $8.26 $667.50 $714.72 $47.22 14.88%/85.12% Family 241 $1,453.72 $1,556.62 $216.30 $231.63 $15.33 $1,237.42 $1,324.99 $87.57 14.88%/85.12% Total Monthly 780 $704,872.98 $754,757.32 $103,588.58 $110,926.45 $7,337.87 $601,284.40 $643,830.87 $42,546.47 Total Annual $8,458,475.76 $9,057,087.84 $1,243,062.96 $1,331,117.40 $88,054.44 $7,215,412.80 $7,725,970.44 $510,557.64 Total Premium Change $598,612.08 % Change 7.1% Total $8,949,176.64 $9,586,532.40 Change from Current Premium $637,355.76 PPO PLAN HDHP PLAN Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 HDHP/HSA IRS 2027 BROWN & BROWN | 7 The IRS made changes to both HDHP deductibles and HSA contribution limits. •HDHP deductibles will be increasing to: •$3,500 from $3,400 for an individual •$7,000 from $6,800 for family •HSA contribution limits will be increasing to: •$4,500 from $4,400 for an individual •$9,000 from $8,750 for family Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 HSA Contributions for HDHP Plan BROWN & BROWN | 8 Plan Tier City's Contribution (per payroll) City's contribution (per month) City's Contribution (annual) Employee's Maximum Annual Contribution* IRS Max Annual Contribution EE $43.75 $87.50 $1,050.00 $3,450.00 $4,500.00 ES $61.67 $123.34 $1,480.08 $7,519.92 $9,000.00 EC $78.75 $157.50 $1,890.00 $7,110.00 $9,000.00 Family $95.00 $190.00 $2,280.00 $6,720.00 $9,000.00 2027 HSA Contributions Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Single Dental BROWN & BROWN | 9 Benefit Comparison Eligibility Definition Individual / Family Deductible Annual Benefit Maximum Carry-Over Benefit Coverage Waiting Periods Out of Network Reimbursement / MPA Preventive & Diagnostic Care Benefit Preventive & Diagnostic Services Basic Care Benefit Major Care Benefit Orthodontia Benefit Orthodontia Eligibility Dependent Children to Age 19 50% - $1,500 (lifetime max) 80% after deductible 50% after deductible 100% Exams, Cleanings, Fluoride, X-Rays, Sealants None 90% / 70% / 40% $1,500 $500 benefit/ $700 threshold / $1,250 max benefit All Actively at Work Full Time Employees $50 / $150 In-Network Voluntary Dental CURRENT / Renewal Arkansas BCBS PPO Plus Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Dual Vision BROWN & BROWN | 10 Benefit Comparison Eligibility Definition Frequency of Service - Exam/Lenses/Frames Eye Exam Single Vision Lenses Bifocal Lenses Trifocal Lenses Frames Contact Lenses Exam - Standard Contact Lenses Exam - Specialty Contact Lenses - Elective (conventional or disposable) In Lieu of Frames & Lenses Contact Lenses - Medically Necessary $150 retail allowance $130 retail allowance $10 Copay $15 Copay Not to exceed $60 Not to exceed $60 $10 Copay $15 Copay $150 retail allowance $130 retail allowance $10 Copay $15 Copay $10 Copay $15 Copay 12 / 12 / 12 12 / 12 / 24 $10 Copay $10 Copay In-Network In-Network All Actively at Work Full Time Employees All Actively at Work Full Time Employees Arkansas BCBS Silver II VSP Network VSP Network Voluntary Vision CURRENT / Renewal CURRENT / Renewal Arkansas BCBS Gold II Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Bree Health Employee Assistance Program (EAP) BROWN & BROWN | 11 Bree Health offers a comprehensive range of services designed to support your mental health and well-being. Our goal is to make accessing care as easy and effective as possible, so you can focus on what matters most. This includes 8 face to face visits per year per incidence for all household members. Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 T H A N K Y O U ! Any solicitation or invitation to discuss insurance sales or servicing is being provided at the request of Brown & Brown Insurance Services, Inc.. Brown & Brown Insurance Services, Inc. only provides insurance related solicitations or services to insureds or insured risks in jurisdictions where it and its individual insurance professionals are properly licensed. © 2026 Brown & Brown. All rights reserved. Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 City of Fayetteville2027-2028 Pricing Summary BREE HEALTH FEATURES Counseling and Certified Life Coaching (8-session Model) CBT AI Solutions Paths Bree Video Library (Relaxation, Meditation, and Insights) Bree Health Mobile App & Web Portal Work Life Services (Legal, Financial, Virtual Concierge, e-learning, & Employee Discounts) Health Advocacy HR Support and Education Full Promotional Campaign On-site Trauma Response (CISD) & Organizational Training (4 Hours of CISD, 6 Hours of Training) Implementation Fee N/A PEPM Cost for Eligible Employees: 8 Sessions – per issue, per year (Spouses and Dependents are covered at no additional cost) $1.40 Annual Investment for ~852 Employees $14,313.60 Rate hold through 12/31/2028 Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2