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APPROVING THE 2026 MONTHLY HEALTH AND DENTAL CONTRIBUTION RATES
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WHEREAS, annually, the Human Resources, Finance Department, and the County's insurance broker collaborate to analyze industry trends and costs to estimate expenses for the County's employee benefit programs for the next year; and
WHEREAS, contribution rates for the program for the upcoming year are calculated based on these estimates to ensure the program and required reserves are adequately funded; and
WHEREAS, the Health Insurance Fund reserve target balance is between 25% and 50% of the annual expenses; and
WHEREAS, the Health Insurance Fund reserve balance is anticipated to reach the top limit of 50% of the annual expenditures at the end of Fiscal Year 2025; and
WHEREAS, health insurance costs are predicted to increase between 5% to 10% in 2026 based on industry trends; and
WHEREAS, while keeping contribution rates unchanged from 2025 is predicted to result in the Health Insurance program operating at a deficit for FY 2025, and thus reducing the balance in the Health Insurance Fund reserve, the resulting reduced balance of the Health Insurance Fund reserve is projected to remain well within the target balance of between 25% and 50% of annual expenditures; and
WHEREAS, keeping contribution rates unchanged will provide health benefit cost stability for the County and its employees in 2026; and
WHEREAS, the Human Resources Department and the Finance Department recommend that the contribution rates for 2026 remain unchanged from the 2025 contribution rates for the monthly health and dental plans for the County and its employees.
NOW, THEREFORE, BE IT RESOLVED by the Kane County Board that the annual contribution rates for January 1, 2026 through December 31, 2026 remain unchanged from the 2025 contribution rates and are approved as set forth in Exhibit A.
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