Cooper City officials are grappling with rising health insurance costs, as discussions during the City Commission Budget Workshop on July 22, 2025, revealed significant concerns over the current insurance plan's financial impact. The meeting highlighted that the city is facing a potential $600,000 increase in renewal costs, prompting a search for more affordable options.

Key discussions centered around the city's experience with health insurance providers, particularly Cigna and UnitedHealthcare, which have quoted steep rates due to the city's high loss ratios. The only viable alternative, Blue Cross Blue Shield, has also indicated a willingness to provide coverage but at a substantial cost increase. This situation has raised alarms among city leaders, who are exploring various strategies to mitigate expenses.

Commissioners discussed the possibility of introducing a high-deductible health plan with Health Savings Account (HSA) contributions as an incentive for employees. This approach could potentially lower costs for the city while providing employees with a financial cushion. Currently, only three employees are enrolled in the HSA, indicating a need for better communication and incentives to encourage participation.

The meeting also touched on the concept of a cafeteria-style benefits plan, which would allow employees to choose their coverage based on individual needs. However, this model could disrupt existing benefits for some employees, leading to concerns about fairness and financial impact.

Additionally, the city is considering self-insurance options, although current high loss ratios make this challenging. Officials are looking into partnerships with neighboring municipalities to share resources and reduce costs.

As the city prepares for potential changes, officials emphasized the importance of clear communication with residents regarding the implications of these decisions. The discussions underscored the urgent need for strategic planning to manage health insurance costs effectively, as the current trajectory is unsustainable for the city’s budget and staffing capabilities.