The Rhinelander Common Council has decided to keep city employees’ health insurance plan unchanged for 2027. That means the city will absorb a 15.8% premium increase that would cost it an additional $247,952 next year. During its Oct. 12 meeting, the council also approved a revamped human resources position that will also take on payroll-related duties. The job pays $71,468 to $80,393 a year.
The health insurance vote came after a presentation from Rebekah Johnstone of M3 Insurance, the city’s benefits consultant. Johnstone said Aspirus Health Plan issued its 2027 renewal at a 15.8% increase and would not negotiate without competing offers. M3 couldn’t give it any, because the other carriers’ fully insured proposals came in higher.
“Due to the high-cost claimants that have arisen over the years, we did find their renewal to be fair,” Johnstone said, citing an actuarial analysis by M3’s underwriting team.
Moving the city to a self-funded plan would have been riskier, she said. At its maximum liability, that option could have raised costs by about 41.5%.
The council had two main options. Under the first, the current plan stays as it is: a $5,000 single and $10,000 family deductible, after which the plan pays 100% of covered in-network costs. Under the second, coinsurance after the deductible would have dropped from 100% to 80%. That would have raised employees’ maximum out-of-pocket costs to $6,500 for single coverage and $13,000 for family coverage, an increase of $1,500 and $3,000. In exchange, the premium increase would have fallen to 12.42%, and the city’s added cost would have dropped to $194,920.
A third option raised only the deductible, to $5,500 single and $11,000 family. Johnstone said it barely moved the needle, bringing the increase down to 15.12%.
“In order to move the needle at all, the co-insurance would have to be changed,” she said.
According to M3’s figures, the city’s combined annual premiums for the two plans will rise from about $1.57 million to about $1.82 million. The plans cover 79 enrolled employees. Mayor Kris Hanus noted that not all of that money comes from the general fund. Some employees are paid through the water and wastewater utilities and other funding sources.
Several council members said the decision was a difficult one.
“Well, it’s discouraging, as expected,” said Alderman Gerald Anderson. He said that if increases continue at this pace, “one of these years” employees may need to be asked to pay more, adding that he meant “no disrespect for the employees.”
Alderman Steven Jopek asked whether shifting costs to employees could “drive off staff” or discourage people from applying for city jobs.
“We have a really good crew of people, and there’s not really a right answer on that one,” Jopek said.
Alderman Bob Lueder made a motion to renew the plan as-is, citing employee retention.
“The employees for this city are … the infrastructure, and employee retention is a key,” Lueder said. Cutting benefits “could actually wind up costing the city more in having to hire new employees and find replacements for people who didn’t like the fact that they had to pay more for their health care.”
The resolution also renews the city’s dental, vision and ID/Legal Shield coverage. Johnstone said the dental plan’s administration fee will rise by 30 cents per employee per month, guaranteed for three years. Vision and Legal Shield rates will stay the same. Johnstone also said the city will expand its wellness program in 2027 based on an employee survey, with the first initiative to be announced at open enrollment.
Employees who choose the broader Aspirus Freedom network plan will continue to pay the difference between its premium and the base Signature plan’s premium. According to the resolution, that comes to $110.54 a month for single coverage and $297.86 for family coverage in 2027.
HR position adds payroll duties
The council also unanimously approved Resolution 2026-102. It creates a Human Resources Manager/Benefits Specialist position to replace the city’s previous HR job, which opened after the employee in it left for another employer. Interim City Administrator Adam Gitter said the city wants someone with a financial background who can handle day-to-day HR work, such as open enrollment, and also take on payroll-related duties.
“Put smart people in smart positions, and good things will happen for your organization,” Gitter said.
The position falls at pay grades K6 through K11. Gitter said the pay is slightly higher than what the previous employee earned, which he hoped would help attract candidates with both skill sets. Hanus said the pay range is included in the upcoming budget.
According to the position description, the job reports to the city administrator. It covers recruitment and onboarding, benefits administration, leave and workers’ compensation, labor relations support and payroll documentation, working with the Finance Department. Gitter said the city had planned to budget a part-time position to help the Finance Department. He hopes the new hire can eliminate the need for it.
“There’s just not enough hours in the day, and Wendi’s fantastic, but at some point she’s going to burn out,” Gitter said, referring to Finance Director Wendi Bixby who requested part-time help as part of the city’s 2027 budget workshops. The addition of the position should alleviate Bixby’s concerns, the alderpersons were told.
Gitter also noted that the city’s incoming city administrator, Angela Gorall, reviewed the position and supports it. A dedicated HR employee makes the administrator’s job more attractive, he said, because it keeps the administrator from getting “bogged down” in daily tasks. He said the city may also look into contracting out some services.
Hanus said the position would take payroll for more than 100 employees, paid every two weeks, off the Finance Department’s plate. He acknowledged that it does not fully solve the problem of having no backup if Bixby is unavailable.
“It does check some boxes, but not all of them,” he said.
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