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TO: Mayor John Laesch
FROM: Elizabeth Coronado, Director of Human Resources
DATE: 09/04/2025
SUBJECT:
A Resolution Authorizing Blue Cross Blue Shield Blue of Illinois (BCBSIL) for Group Health Care Services and Rates for the period of January 1, 2026, through December 31, 2026.
PURPOSE:
To affirm the 2026 HMO, PPO and Value HSA(HDHP) schedule of benefits and establish the 2026 insurance premium rates of the City's HMO, PPO and Value HSA(HDHP) medical insurance.
BACKGROUND:
The City of Aurora provides a self-funded health plan for active employees and pre-65 retirees through Blue Cross Blue Shield of Illinois. The employees and pre-65 retirees can enroll in a HMO, PPO, OR HDHP health plan. 2025 we moved the PPO and HDHP to BCBSIL from CIGNA and convert the BCBSIL HMO to the self-funded plan.
DISCUSSION:
The HMO, PPO, and Value HAS(HDHP) offerings have remained stable since January 1, 2016. However, the City’s plan on a Per Employee/Retiree Per Year cost is significantly higher than the Mercer Government Benchmark.
Year HMO Mercer CIGNA Mercer
2020 $18,312 $15,862 $20,544 $14,000
2021 $18,655 $16,258 $22,452 $14,665
2022 $17,691 $16,665 $22,500 $15,244
2023 $18,441 $15,274 $21,780 $16,457
2024 $19,548 $15,656 $23,016 $16,868
2025* $19,548 $16,470 $23,706 $17,745
The 2026 renewal rate is 2.5% for PPO and HMO. The 2026 renewal rate is 10% for Value HSA (HDHP).
The City recommends approving the rates for the HMO, PPO and Value HSA(HDHP) health plan for 2026.
Attached are the 2025 and 2026 rates for comparison
*2025 Projection.
IMPACT STATEMENT:
No impact.
RECOMMENDATIONS:
Place on the Finance Committee calendar for approval to City Council.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing Blue Cross Blue Shield Blue of Illinois (BCBSIL) for Group Health Care Services and Rates for the period of January 1, 2026, through December 31, 2026.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, Blue Cross Blue Shield Blue of Illinois (BCBSIL) is a federally qualified Health Maintenance Organization with medical centers located in Aurora and the surrounding area; and:
WHEREAS, the 2026 proposed City budget will provide funding for this item in employee health account number 602-0000-410.28-05.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: is hereby authorized to execute the BCBS contract for 2026. The rates attached as Exhibit "A" represents a 2.5% increase for PPO and HMO and a 10% increase for Value HSA(HDHP).