City of Auburn will remain in health insurance consortium as premiums rise

AUBURN — With premiums increasing in 2026, the city of Auburn will remain in a consortium of municipalities, including Cayuga County, to buy employee health insurance.

The City Council on Thursday voted unanimously to approve the municipal cooperation agreement with the Cayuga County Health Insurance Consortium. The consortium includes the city, county, Cayuga Community College, Cayuga County Soil and Water Conservation District and the city of Oneonta.

The new agreement is for a three-year term beginning Jan. 1, 2026, and continuing through 2028.

Auburn joined the consortium in 2016 — a move that was supported by, among others, Mayor Jimmy Giannettino. Giannettino, who was a councilor nine years ago, said the city comptroller at the time explained that joining the consortium was a good financial decision.

The agreement, which covers three years, could have been longer. Haines said the initial proposal for the extension was five years, but the city requested three.

"The reason for that is stability," Haines explained. "We want to make sure that we have an option for moving forward. The consortium, right now, is looking at bringing on additional members. There are out-clauses in this that do have penalties if we do determine there is something that we need to move to."

One possibility is joining the Greater Tompkins County Municipal Health Insurance Consortium, which has many more members, including several towns and villages in Cayuga County. But Haines noted that while premiums are increasing by 14% for the Cayuga County consortium in 2026, the Tompkins County consortium will have an 18% increase next year.

Giannettino mentioned there have been inquiries about why the city stays with the Cayuga County consortium instead of joining Tompkins.

"That's something that continues to be looked at, and this continues to be the best option for us as an organization," he said. "I think in 2025, when we talk about health insurance, 'best option' is a loaded term. I can tell you, from the private sector standpoint, it is not good."

Although the Cayuga County consortium is the better option for the city, officials are monitoring how the increase affects the 2025-26 budget.

Whether it's Cayuga or Tompkins, there is agreement that being part of a consortium has benefits. Before joining the Cayuga consortium in 2016, the city bought its own insurance.

By participating in the consortium, Haines said there are "savings in numbers."

"We continue to do everything we can to work on health insurance," she said. "This is our best option, at the moment, as we continue to look for ways to save in that arena."

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