Title
Consider and take action on a resolution approving the employee insurance benefits program for the period October 1, 2017 to September 30, 2018 and authorizing agreements with 1) Cigna Health and Life Insurance Company for medical plan change options related to employee health insurance, 2) MetLife for employee dental insurance and 3) Colonial Life for voluntary benefits including cancer, accident and critical illness (Director of Human Resources and Civil Service)
Background:
This item will approve the employee insurance benefit program for the October 1, 2017 through September 30, 2018 plan year, as presented at the City Council work sessions on July 24, 2017 and August 7, 2017. The current health plan through Cigna includes a rate guarantee through plan year 2017-2018 for administrative services cost. Staff has reviewed the existing insurance program with IPS Advisors (the benefits consultant for the City) which is currently operating at 118% of expected claims; 94 percent of maximum liability. A detailed review was conducted of the existing dual option plan including consideration of introducing a third choice, a Health Savings Account option, as well as proposed recommendations for plan design changes to help reduce the anticipated cost increases. Health insurance costs will increase 12.4 percent under the proposed Cigna plan detailed below. The increase will be shared between the employees and the City.
A Request for Proposal (RFP) for dental insurance and voluntary benefits was requested by IPS Advisors in early June. IPS evaluated responses in mid-July and presented best and final proposals from three carriers for dental benefits at the July 24, 2017 City Council work session. IPS reviewed final proposals from Aetna (the incumbent), United Healthcare and MetLife. All three plans were essentially comparable in design and service. The Aetna (the incumbent) proposal resulted in a premium cost increase over this year of greater than 24 per...
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