ITEM TITLE:
Annual Renewal of City/School Health Insurance Benefit Plan for period beginning 4/1/2019
SUBMITTED BY: Brian Carlson, Finance Director
FISCAL NOTES:
Expenditure Required: $6.5MM Estimated Combined City/School
Unencumbered Balance: n/a; indirectly budgeted via department benefits expense
Funding Source: Payroll Deductions via City/School Self-Insurance, Fund 210
RECOMMENDATION:
Approve
SUMMARY STATEMENT:
• This agenda item formalizes the annual renewal of the health insurance benefit plan. Overall cost estimates and renewal features were presented to Council on 3/5.
• Renewal Premium Change:
o City: -11%; total monthly $2,402.76 to $2,137.73; $265.03 savings
§ Employer monthly: $2,306.65 to $2,052.22; $254.43 savings
§ Employee monthly: $96.11 to $85.51; $10.60 savings
o School: +10.2%
• Plan Changes:
o New Rx Manager, effective 4/1
o Oral contraceptive care covered effective 7/1
§ This benefit was excluded until now. This exclusion is permitted for grandfathered plans.
• Contracts (reviewed by staff and legal department):
o Stop-loss insurance renewal with Sun Life
o Prescription Benefits management with National Rx Cooperative / Caremark / CVS (new relationship)
o Case Management and Review with MRC (renewal)
o Benefits Administration renewal with Meritain (to be presented 4/2)
• Staff will provide Council with a follow-up plan review in the fall, emphasizing fund balance as a measure of plan solvency, and recommending changes in conjunction with Broker, ERT and Stakeholder group.