Title
Consider and take action on a resolution approving the employee insurance benefits program for the period October 1, 2018 to September 30, 2019 and authorizing agreement with Cigna Health and Life Insurance Company for medical plan change options related to employee health insurance (Director of Human Resources and Civil Service)
Background:
Approval of this resolution will authorize an agreement with Cigna Health and Life Insurance Company for medical plan change options related to employee health insurance, and approve the employee insurance benefit program for the October 1, 2018 through September 30, 2019 plan year, as presented at the City Council work session on July 10, 2018.
The current health plan through Cigna includes a 3 percent increase to plan year 2018-2019 for administrative services costs. Staff has reviewed the existing insurance program with IPS Advisors (the benefits consultant for the City) which is currently operating at 101% of expected claims. A detailed review was conducted of the existing triple option plan including the preferred network arrangement with UTMB that began on January 1, 2018 to help minimize cost increases. Health insurance costs will increase 7.1 percent under the proposed Cigna plan detailed below. The increase will be shared between the employees and the City.
Plan Design Changes - Health Insurance
Staff recommends maintaining the triple option, partially self-funded, twelve-month program through Cigna. The triple option plan provides employee choice and is estimated to cost $6,953,607 for the term. This is 7.1 percent more than the current plan cost. Staff recommends renewal with Cigna for the 2018 - 2019 plan year with the following plan design changes:
Medical:
• Increase Mid Plan standard network deductible from $1,000 to $1,500 for individuals and from $2,000 to $3,000 for families
• Increase Buy Up Plan Standard network deductible from $5...
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