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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Director of Human Resources
DATE: August 23, 2018
SUBJECT:
A Resolution Establishing Cigna Open Access Plan (OAP) and High Deductible Health Plan (HDHP) Health Insurance Plans and Rates Effective January 1, 2019 through December 31, 2019
PURPOSE:
To affirm the 2019 OAP and HDHP schedule of benefits and establish the 2019 insurance premium rates of the city's OAP and HDHP medical insurance.
BACKGROUND:
Each year the city establishes base premium rates for its self-insured OAP and HDHP plans. CIGNA has been the city's health insurance administrator for the OAP and HDHP plans since 2016. The city plans on offering continued screenings in 2019. Last year in addition to the screenings, the city made certain plan design changes which further reduced overall cost.
The 2018 premium rates were increased by 5%.
DISCUSSION:
As a self-funded plan, the city is subject to changing cost due to excess or catastrophic medical claims, Rx cost and limitations to making further plan design changes which is subject to ongoing union negotiations.
Taking these factors into account and based on the recommendation of the city's consultant, the 2019 premium rates for groups that have agreed to the higher user fees/employee contributions will be decreased by 11.7%. A 3.2% increase to the 2019 premium will be applied to the groups that have not agreed to the higher plan design.
Attached are the 2019 and 2018 rates for comparison.
Attached are the 2019 and 2018 benefit changes for comparison.
IMPACT STATEMENT:
No impact..
RECOMMENDATIONS:
Placed on the Finance Committee calendar for approval by Finance Committee.
cc: Alderman O’Connor, Chairman
Alderman Mesiacos
Alderman Bugg
Alderman Mervine, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Establishing OAP and HDHP Health Insurance Plans and Rates effective January 1, 2019 through December 31, 2019.
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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, on the basis of past actual experience and projected loss experience, that the OAP and HDHP rates set forth herein represent equitable and reasonable amounts for eligible participants in the Plans)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: the attached 2019 City of Aurora OAP and HDHP rates of all plans are hereby adopted as attached hereto and made a part hereof as Exhibit "A1-4".