SALISBURY — On April 2, after postponing a final decision on the matter due to Council Member Anthony Smith not being present at their last meeting, the Salisbury City Council voted to raise health insurance premiums for employees and the city by 3 percent for the upcoming fiscal year starting July 1. 

The last time Salisbury had a rate increase for employees or the city was seven years ago. Finance Director Wade Furches said that Mark III, Salisbury’s healthcare plan consultant, found the city’s policy to be “very competitive compared with other municipalities around us.” However, Mark III also discovered that Salisbury’s family premiums are high. 

A few of the wellness programs being offered to employees to reduce their claims include a Weight Management Program, Wellness Center–Nurse Practitioner, and Diabetes Health Map Program. One of the ways the city is contributing to mental healthcare is by having McLaughlin Young Group provide “12 free mental health sessions per incident for employees.” 

Furches said the city’s cash balance for the healthcare fund has been “starting to trend downward” in the 2023 and 2024 fiscal years with expenses “starting to trend upward,” going from $4.1 million to $5.5 million over the past six years. 

“While our healthcare fund is still strong, we want to take action and initiatives to keep it strong so a couple years from now, we don’t have to have a 10 percent increase. We want to do this in a planned, incremental fashion,” Furches said. 

Furches advised the largest increase would be an extra $183 annually involving the buy up plan for employee-spouse. In addition to the increases, staff also recommended by adding employee-spouse and employee-children, it will decrease premiums for employee-family coverage. 

Mayor Pro Tem Tamara Sheffield and Furches both clarified that this increase would not come from the city employees’ salaries, but only their current premium. 

The premium increase’s “budgetary impact” for the 2025 fiscal year budget will be $131,582.

*This story has been corrected for accuracy.