CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: November 19, 2025
To: Honorable Mayor and City Council Members
From: Andrea Russell, Director of Human Resources
Department: Human Resources
Subject: Health Benefits Plan Year 2026 (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the City’s health benefit plans for plan year 2026 and authorize the City Manager to execute any agreements necessary to effectuate the medical, dental, vision, life, short and long-term disability, and other ancillary and voluntary plans that the City offers as part of its benefits package to employees.
City Manager's Comments
The City Manager concurs with HR Director’s recommendation.
Executive Summary
The annual review for the City’s Health Plan Benefits for the 2026 plan year was completed. The proposed plan includes changes to the vision insurance provider with no change to benefit. It also includes the addition of an Employee Assistance Program specifically for first responders. Sufficient funding for increased premiums is included in budget.
Background
Each year City staff and representatives from the employee bargaining units review the health plan options and premiums for medical, dental, vision, life, short- and long term disability and other ancillary and voluntary plans that the City offers as part of its benefits package to employees. Providing affordable health insurance and voluntary plan options for employees is a key part of recruitment and retention.
On September 16, 2025, Human Resources staff and the City’s Health Benefits Broker Alliant, met with the Health Benefits Committee, which includes representatives from each of the City’s employee bargaining groups. The Health Benefits Committee reviewed plan options and premiums to provide the best selections available to employees, at the best price. The benefit renewal options included medical, dental, vision, life, short and long-term disability, and other ancillary and voluntary plans.
Discussion
Medical plan providers will remain the same for the 2026 plan year. However, insurance premiums for medical options offered through Kaiser and Anthem will increase by 14.8%.
Several factors have contributed to these higher rates, including:
Expanded use of GLP-1 medications, resulting in significantly increased utilization. Rapid growth in the development of gene therapies and specialty drugs, which offer breakthrough treatments but come at exceptionally high costs. Ongoing labor shortages across the healthcare industry. Elevated cancer and maternity-related claims, which continue to represent the highest-paid and most frequently diagnosed conditions.
A sharp rise in high-cost (“million-dollar”) claims—up 8% in the past year and 50% over the past four years.
Delta Dental will continue to provide dental insurance with a rate increase of 2.3%.
VSP will continue to provide eye insurance with a rate pass until 2029.
The City currently provides for an Employee Assistance Program (EAP) through PRISM Concern. An EAP is a voluntary program that offers free and confidential assessments, short-term counseling, referrals, and follow-up services to employees who have personal and/or work-related problems. PRISM Concern offers six (6) sessions per issue for all City employees and their families.
Lincoln Financial will continue to provide basic and voluntary life insurance, short-term disability, long-term disability and Paid Family Leave with rates remaining unchanged until 2027. Wishbone and Total Pet will also continue to provide pet insurance with rates remaining unchanged through 2026.
The City of San Bernardino introduced the Colonial Life voluntary benefits program in 2015 and currently has 77 active policyholders. The voluntary Accident and Critical Illness plans through Colonial Life will renew at the current premium rates for the upcoming plan year. A new version of the Critical Illness–Cancer plan is being added; however, existing policyholders are not required to take any action at this time.
Medical plan design options and employee out-of-pocket costs continue to meet the employer mandates Affordable Care Act (ACA) requirements. City contributions for employee groups are established by the provisions in their respective Memorandum of Understanding.
2021-2025 Strategic Targets and Goals
Approving the City’s health benefits plan options for plan year 2024 aligns with Key Target 2b: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality of talent.
Fiscal Impact
Sufficient funding is included in the FY 2025/26 Adopted Budget.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the City’s health benefit plans for plan year 2026 and authorize the City Manager to execute any agreements necessary to effectuate the medical, dental, vision, life, short and long-term disability, and other ancillary and voluntary plans that the City offers as part of its benefits package to employees.
Attachments
Attachment 1 - 2026 Renewal Summary
Ward:
All Wards
Synopsis of Previous Council Actions:
August 17, 2022 The Mayor and City Council approved the City’s health benefit plans for plan year 2023 and authorized the City Manager to execute any agreements necessary to effectuate the medical dental, vision, life, short and long-term disability and other ancillary and voluntary plans that the City offered as part of its benefits package to employees.
CC: Eric Levitt, City Manager