ITEM TITLE:
Annual Renewal of City/School Health Insurance Benefit Plan for Period Beginning 4/1/2025
SUBMITTED BY: Rhea E Cragun, Human Resource Director
FISCAL NOTES:
Expenditure Required: $5.4MM (City, April-December 2024)
Unencumbered Balance: $5.2MM
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 16.5% increase
• A budgeting error results in a $144,061 shortfall
o Since COV typically budgets for full-employment this shortfall is likely to be mitigated by normal staffing vacancies in 2025
• Renewal Premium Change:
o City +16.5%: total monthly $2825.80 to $3,293.21
§ Employer monthly: $2712.77 to $3,161.48
§ Employee monthly: $113.03 to $131.73
Plan Changes:
• Stop loss deductible raised from $175,000 to $200,000, reducing stop loss premium by -12.6%
• Stop loss deductible change based on recent claims experience and reduces overall premium by about 1%
The schools have separately reviewed and approved their plan renewal specifications.
• School: +9.7%