The Flagler Beach City Commission voted 5-0 on Wednesday, Sept. 2, 2026, to maintain the health insurance plan, beginning with a special meeting that started at 5:01 p.m.
The city manager announced that staff met Monday after complaints at the prior Thursday’s meeting and recommended a return to Florida Health Care. He said the plan restores the gap insurance that was removed and won’t change the budget as the city was able to get savings on its property and vehicle insurance. The plan also caps pay raises at 4% for cost of living with merit pay reserved for another year.
Police union employees reached a deal for a 5% pay raise. Staff explained that the plan that would have been implemented with UnitedHealthcare would have been an 8% increase and included a $200,000 rebate, while the Florida Health Care plan is a 16% increase. The city has alternated between the two companies over the years depending on the best deal.
Concerns over the process
One commissioner read a written statement regarding the process of changing health insurance that the city’s approach last week was “completely unacceptable.”
The statement said health insurance was “a lifeline for employees and their families” and that the process needed to be “transparent, orderly, and respectful.”
Commissioners agreed the city will continue to have increasing health insurance costs in coming years. Several said taxpayers “cannot be the only people to shoulder that” and suggested looking next year at making small changes to co-pays and employee payments, saying this is common practice elsewhere. They also said this year’s plan costs about $913 per employee and they’d like to set a cap on the city’s portion around $1,000 moving forward.
The board also talked about “piggybacking” or joining together with Flagler County, Palm Coast, Bunnell and the school board for a larger regional health plan. Members said there could be enough interest to pursue it but it would be difficult given union agreements and getting everybody on board, and it will need to start soon if it happens. Commissioners also asked that next time staff seek insurance numbers earlier so they don’t typically start getting quotes late July or August.
Employee appearance
John Bowman, who works at the wastewater plant, told the commission that he is very much in favor of the Florida Health Care insurance plan. He said because he is diabetic, he needs to have his doctor, pharmacy and lab all in one place, and that UnitedHealthcare was almost going to force him to leave. He also said some of the medications he needed, that cost thousands of dollars, wouldn’t be covered.
Bowman raised the question of whether the city will continue the goal-setting system for employees if merit pay is on hold. “I don’t want any less than three percent,” he said. “I think four percent is fair.” He said the city can’t compete with Palm Coast, Daytona and Ormond Beach with pay and could become a “training ground” for people to come to work, but then leave.
Commissioners thanked Bowman for his appearance and said they will take his comments under consideration for future budgets. They also said rising health care costs is a national issue and no one individual employee is to blame. “It’s going up for everybody by a lot,” one member said.
The commission then voted to pass the resolution unanimously. Before adjourning, a commissioner shared a photo of a tsunami and earthquake evacuation sign that was up in the town and wondered about it. Officials said the signs are attached to a rating system that brings down flood insurance costs and saves residents money.
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