ITEM TITLE:
Annual Renewal of City/School Health Insurance Benefit Plan for Period Beginning 4/1/2024
SUBMITTED BY: Rhea E Cragun, Human Resource Director
FISCAL NOTES:
Expenditure Required: $4.5MM (City, April-December 2024)
Unencumbered Balance: $4.5MM
Funding Source: Cost code 41300, pro-rated among all staffed departments
RECOMMENDATION:
Approve
SUMMARY STATEMENT:
• This agenda item formalizes the annual renewal of the health insurance benefit plan.
• This health insurance renewal with a 21% increase is estimated to increase the FTE Payroll Budget Category (comprised of Salaries/Wages + Benefits) 3-4% in the 2025 Budget.
• The schools have separately reviewed and approved their plan renewal specifications.
• Renewal Premium Change:
• City +20.6%: total monthly $2341.89 to $2825.80
o Employer monthly: $2248.22 to $2712.77
o Employee monthly: $93.67 to $113.03
• School: +6.9%
• Plan Changes:
• Stop loss rates renewed with +15.9% to premium
• Hearing Exam coverage modified:
o Prior Coverage: Employee pays 10% exam when device is purchased. Device 50%. Maximum every 3 Years
o Change: Employee pays 10% exam (regardless of device purchase or not). Device 50%. Maximum every 3 Years (estimated cost increase +$3000/yr)