Common Council Approves City Health Insurance Plan – Retirees Offered Options

The City of Cortland Common Council voted 7-1 during their Tuesday meeting in regards to 2026 health insurance coverage plans and options for both active and retired city employees. Councilmember Bill Carpenter voted against.

If the council voted against the change in healthcare plans, the city was looking at a significant financial impact. According to the city, if the city remained on Excellus BlueCross Blueshields “Classic Blue” plan, the monthly cost for 2026 was to be $3,557.19 with a projected cost in 2030 over $6,218.63. If the city did not make a change, taxes would’ve had to be raised by as high as 34%.

Back at the council’s October 21st meeting, Director of Administration & Finance, Elizabeth Greenwood said the city was actively looking at saving millions of dollars in healthcare coverage. Greenwood noted the city found a way to provide equal or better coverage that would also save the city over $3 million.

The changeover to an equal or better healthcare option for both active and retired city employees prevents the City of Cortland making deep cuts to services, significant increases in property taxes, and layoffs.

The city says they reviewed current plans offered through the Municipal Health Insurance Consortium and also other plans, also offered by BlueCross BlueShield, of their Bronze Plan, MS-3 Plan, and Plan-4. According to the city, a side-by-side comparison of the Classic Blue, Platinum, and Bronze Plans was conducted.

Previously, Corporation Counsel for the City of Cortland, Randall Lewis, said the Bronze premiums through BlueCross Blueshield are “substantially less” than the Classic Blue premiums. He added a single-worker will pay about $1,000 less a year in premiums and families about $3,000 less per-year. Under the Bronze plan, prescription out-of-pocket costs will not occur.

The city added the coverage offered from the Bronze Plan is equal or better to the Classic Blue and also offers “substantially lower” premiums and out-of-pocket expenses than Class Blue. Comparing the Classic Blue and Plan-4, the city says again the coverage is equal or better with premiums and out-of-pocket costs lower.

“The Bronze Plan, MS-3 and Plan-4 will cost the individuals being served with a lower premium, with greater coverage and lower out-of-pocket costs than the existing plans being offered by the City and therefore are deemed to be equal or better in coverage than the existing plans.” According to the resolution.

The City of Cortland will additionally cover in full any gaps in service, procedures or device that would’ve been covered by Classic Blue which is not covered by the new Bronze Plan, MS-3 Plan, or Plan-4.

Under the resolution, the following was approved.

That the eligible, retired Medicare enrolled individuals who are currently enrolled on either Classic Blue or MS-3 for the 2025 plan year shall be provided with an option to elect between MHIC MS-3 and SPANY Plan-4.

• That all retirees not currently 65, upon obtaining the age of 65 and enrolling in Medicare shall be provided with an option to elect between MHIC MS-3 and SPANY Plan-4.
• That all active employees or retirees not enrolled in Medicare, who had coverage under Classic Blue or Platinum Plan for the 2025 plan year shall be transferred to the Bronze Plan for said year.
• That for all active employees and retirees being transferred to the Bronze Plan the City shall fully fund an HRA covering the in-network out-of-pocket maximum and the out-of-network out-of-pocket maximum.
• That said HRA shall only be used for expenses attributable to the in-network out-of-pocket maximum and out-of-network out-of-pocket maximum.
• That in the event that any service, procedure, or device would have been covered under Classic Blue and is not covered by the Bronze Plan, MS-3 Plan or Plan-4 the City shall pay in full the expenses of said uncovered service, procedure, or device. The City is further directed to develop a policy and procedure for submission of claims for such items and to distribute the same.