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TO: Mayor John Laesch
FROM: Elizabeth Coronado, Director of Human Resources
DATE: 9/4/2025
SUBJECT:
A Resolution Establishing Health and Dental Insurance Monthly Rates for Pre Medicare-Retirees Effective January 1, 2026, through December 31, 2026
PURPOSE:
To establish the 2026 health and dental insurance monthly rates for Pre Medicare retirees.
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 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
Renewal is a 0% increase for the Pre Medicare retirees.
Retiree dental premiums and active employee dental rates are the same and there is no increase for 2026.
2025 and 2026 Pre Medicare retiree contribution sheets are attached.
*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 Establishing Health and Dental Insurance Monthly Rates of Contributions for Pre-Medicare Retirees Effective 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, it has been determined that the Pre-Medicare retiree rates set forth herein for health and dental insurance premiums represent equitable and reasonable amounts for eligible retiree and dependent participants in the City health plans:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the attached 2026 City of Aurora Medical and dental rates for eligible pre-Medicare retirees and dependents are hereby adopted as hereto and attached.