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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Chief Human Resources Officer
DATE: July 31, 2023
SUBJECT:
A Resolution Authorizing an Agreement with Humana to administer a Medicare Advantage Plan for Medicare Eligible Retirees for the Period of January 1, 2024 through December 31, 2025.
PURPOSE:
To authorize an agreement with Humana to administer a Medicare Advantage Plan for Medicare eligible retirees.
BACKGROUND:
January 1, 2022 the City of Aurora moved the Post-65 Medicare retirees from the Aetna Medicare Advantage plan over to Humana’s Medicare Advantage Plan. Under the Humana Medicare Advantage Plan the city saved 43.3%, or approximately $835,730. The below is the rate history since 2019:
2020: $343.35 Per Retiree Per Month
2021: $314.84 Per Retiree Per Month
2022: $178.55 Per Retiree Per Month
2023: $199.98 Per Retiree Per Month
DISCUSSION:
Humana offered the city a two-year contract with the 2024 rate guarantee at $214.86 which is a 7.4% increase rate.
Humana Plan Highlights:
Silver Sneakers - Fitness Program included (Enhancement over Aetna)
Home Delivery Meal Program - 14 days after in-patient stay
Go 365 Wellness Program included
Post-Discharge Personal Home Care
The city recommends accepting the Humana renewal for the Post-65 retiree health plan on January 1, 2024; the 2024 rate is 37.5% below the 2021 rates for Post-65 retirees.
IMPACT STATEMENT:
No impact.
RECOMMENDATIONS:
Place on the Finance Committee calendar for approval to the City Council.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing an Agreement with Humana to Administer a Medicare Advantage Plan for Medicare Eligible Retirees for the Period of January 1, 2024 through December 31, 2025.
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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 is in the best interests of the City of Aurora to continue a contractual relationship by and between the City of Aurora and Humana for administration of a Medicare Advantage Plan for Medicare eligible retirees; and
WHEREAS, the 2024 proposed City budget provides funding for this item in employee health account 602-0000-410-.28-02; 602-0000-410.28-04; 602-0000-410.28-21; and retiree health account numbers 704-0000-41.28-52; 704-0000-410.28-54; 704-0000-410.28-62; 704-0000-410.28-64; 704-0000-410.28.72; 704-0000-410.28-74.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Mayor if hereby authorized to enter into an agreement with Humana for the period of January 1, 2024 through December 31, 2025.