*Amend the City Employee Benefits Program for the FY 2026-27 plan offerings

The City of Portland ordains. Section 1. The Council finds. The Bureau of Human Resources is responsible for the administration of employee health and welfare benefit plans. The City's health insurance costs for the Labor Management Benefits Committee (LMBC) are facing a 10.8% increase for fiscal year 2026-27, which is valued at approximately $15,000,000 more than current fiscal year. Due to rising costs for medical claims resulting from delays in employees accessing medical services during the pandemic and increases in the costs of medical services, the reserve for the City's self-funded health insurance is below the prudent and recommended amount. To address the need for an increase to these reserves, the Bureau of Human Resources recommends increasing the City of Portland's composite rate for employee benefits to 15%, with the difference between 10.8% and 15% applied towards the self-funded medical plan reserve fund. This recommendation is brought forward solely by the Bureau of Human Resources. The Bureau of Human Resources worked with the LMBC, as required by the collective bargaining agreements between the City and its unions, excluding the Portland Police Association representing members at Portland Police Bureau, to make plan design recommendations for the City's self-insured and insured plans which ensure costs fall within the target budget rate for the City's health insurance increase in costs. The LMBC recommends, and the Bureau of Human Resources supports, the following plan design changes which have negligible impact or are already factored into the renewal costs: Continue offering thirteen EAP visits per plan year for employees represented by Portland Fire Fighters Association and Portland Police Command Officers Associations, and ten visits per plan year for others covered under LMBC plan. Increase the out-of-pocket maximum for the City's self-funded high-deductible health plan from $4,000 to $4,050 per individual and from $7,150 to $7,250 per family to align with federally required annual changes to the deductible. Add Virta coverage under CityCore medical for voluntary weight loss support and counseling, focusing on diabetes reversal. Adjust benefit coverage for CirrusMD virtual visits under the CityCore medical plan to remove member cost share for the first three encounters. Cover a two-year pilot program, subject to Council appropriation in FY 2027-28, for self-referred chiropractic and acupuncture alternative care under the Kaiser medical plan, subject to a $25 copay and visit limitations. Cover cone beam x-ray services under Class I benefits for Moda/Delta Dental members. NOW, THEREFORE, the Council directs: The Council hereby adopts the City Employee Benefits Program for fiscal year 2026-27 that increases the cost of the plan by 15%, as reflected in attached Exhibit A. Section 2. The Council declares that an emergency exists to avoid undue and costly delay in providing benefits to plan participants by the beginning of FY 2026-27; therefore, this Ordinance shall be in full force and effect from and after its passage by Council.