City Council Meeting Date: October 6, 2026
To: Mayor and City Council
City Administrator Martig
From: Keenan Knutelski, Human Resources Manager
Title
Consideration of 2027 Employee Benefits Renewal.
Body
Action Requested:
The Northfield City Council consider adopting a Motion approving rates and contributions for 2027 employee benefits coverage.
Summary Report:
The City of Northfield approved Gallagher Benefits Services as its broker for employee benefits in 2020. Gallagher Benefits Services Client Manager David Nelson and Area Vice President Jenny Van Deinse presented the renewal of health and other employee benefits to the employee benefits committee on September 21st and to the Council Employment Policy Committee on October 5th. The employee benefits committee will meet again on October 5th. Additional information will be sent via supplemental after that meeting and prior to the City Council meeting.
The following Blue Cross Blue Shield health insurance plans are recommended for the 2027 benefits renewal:
Continue offering the $500 deductible, traditional co-pay plan. Continue offering the $3,400/$6,800 embedded Heath Savings Account (HSA) plan. Deductibles for this plan will index up to $3,500/7000 in 2027. Continue offering the $5000 embedded Health Savings Account (HSA) plan. The former two plans use the AWARE network (Northfield Hospital & Clinics, Mayo and metro hospitals included in network), the latter uses the High Value National Network.
Continue with Ochs as ancillary carrier for Life, LTD, Vol Life,. Continue with State Plan for MN Paid leave.
Health Insurance History
In 2020, the City decided to switch from the Public Employees Insurance Plan (PEIP) to Blue Cross Blue Shield (BCBS). According to statute, the city must go out for proposal every 5 years for employee group benefits. The City received notice of a 14.2% negotiated renewal increase for 2027.
Rate adjustments are based on group make-up, including age, employer co...
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