Bella Vista Refines Employee Health Plan to Balance Costs, Care, and Competition
BELLA VISTA, Ark. — The City of Bella Vista is updating its employee health insurance plan for 2026, aiming to create a more stable, transparent, and sustainable benefits system after several years of steep cost increases. The City Council approved the new package during a special meeting on October 15, ensuring the plan will take effect January 1, 2026.
🏥 From Cost Spikes to Control
Only a few years ago, Bella Vista’s health insurance premiums were rising faster than the city’s budget could handle — jumping by 34% in 2023 and 29% in 2024 under its old, fully insured plan. To curb that volatility, the city moved to a self-funded model in 2024, taking on more responsibility for paying claims directly while maintaining stop-loss protection for high-cost cases.
That change was significant: it gave the city greater insight into how dollars are actually being spent, and allowed it to reinvest savings and rebates back into the plan. The first audit of the self-funded model showed nearly $400,000 in reserves, even after paying claims.
For 2026, Bella Vista will continue with that model — making minor adjustments to deductibles and coverage options, but keeping the overall structure focused on long-term stability rather than short-term savings.
💡 Why the Change Matters
While the specific plan changes may look routine on paper, city leaders say they reflect broader priorities about how Bella Vista wants to manage its workforce and finances.
1. Reducing Volatility – The move to self-funding helps smooth out large swings in annual premium increases. Rather than being locked into insurance carrier rates, the city now pays claims as they occur, giving it more flexibility to adjust for trends year to year.
2. Increasing Transparency – Self-funding gives the city visibility into claims data, pharmacy rebates, and cost drivers — a major shift from the opaque structure of traditional insurance. In 2025 alone, the city received over $56,000 in prescription rebates that previously would have gone to the carrier.
3. Targeting Cost Drivers – Bella Vista’s plan now includes programs designed to manage high-cost or chronic health conditions, like virtual physical therapy, cancer care management, and second-opinion services. The goal is to improve outcomes while reducing large, unpredictable expenses over time.
4. Balancing Employee Affordability – By keeping both a high-deductible health plan and a co-pay option, employees can choose how they want to manage their coverage and costs. The city continues contributing to employees’ Health Savings Accounts, signaling a shared investment in care rather than shifting the burden entirely to workers.
5. Staying Competitive – With labor markets tightening, Bella Vista views benefits as key to retaining skilled employees and first responders. Alongside health coverage, the city is maintaining programs like its Employee Assistance Program (SWEAP) — which offers counseling and mental health support — and city-paid long-term disability coverage, ensuring benefits remain competitive with neighboring cities.
⚖️ The Broader Goal: Stability Over Surprises
While the city still faces a 10.2% renewal increase for 2026, officials see that as a sign of progress — a far cry from the double-digit spikes of past years. The plan’s self-funded structure is giving Bella Vista tools to predict, manage, and offset costs in ways that weren’t possible before.
As the city continues refining its benefits strategy, the focus remains the same: protect employees while protecting the budget. The changes reflect a long-term approach — one that values the people behind city services as much as the infrastructure they maintain.
“Self-funding gives us control, transparency, and stability,” council members noted during discussion. “It’s how we make sure Bella Vista can take care of its employees — and stay financially healthy as we grow.”
