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TO: Mayor John Laesch
FROM: Michele Clark, Chief Human Resource Officer
DATE: August 27, 2026
SUBJECT:
A Resolution Authorizing an Agreement with Blue Cross Blue Shield of Illinois (BCBSIL) for the Administration of Employee Group Health Insurance and Further Establishing Group Health Insurance Plan Rates for the period of January 1, 2027, through December 31, 2027
PURPOSE:
To authorize administrative services agreements with BCBSIL for employee group health insurance and to establish the 2027 schedule of benefits and insurance premium rates for the City’s PPO, HMO, and Value HSA (HDHP) medical and vision plans.
BACKGROUND:
The City of Aurora provides self-funded group health plans for active employees through Blue Cross Blue Shield of Illinois (BCBSIL). Employees may enroll in the PPO, HMO, or Value HSA (HDHP) medical plans. Additionally, the City offers vision coverage through an existing multi-year contract with EyeMed and its affiliate.
DISCUSSION:
The proposed 2027 health insurance renewal includes a 15% premium increase for the PPO plan, a 20% premium increase for the Value HSA (HDHP) plan, and a 25% increase to the HMO base funding rate.
The City recommends renewing its agreements with BCBSIL and additionally approving the proposed 2027 rates for the PPO, HMO, and Value HSA (HDHP) medical and vision plans.
There are no plan design changes other than an increase in the required family deductible for the Value HSA (HDHP) plan to $3,500, as required by Internal Revenue Service regulations.
Medical and prescription drug cost trends, claims experience, and the City’s funding requirements are the primary factors driving the proposed increases. The proposed 2027 rates are included in the attached exhibit.
IMPACT STATEMENT:
NA
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 an Agreement with Blue Cross Blue Shield of Illinois (BCBSIL) for the Administration of Employee Group Health Insurance and Further Establishing Group Health Insurance and Vision Plan Rates for the period of January 1, 2027, through December 31, 2027
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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, The City of Aurora provides self-funded group health insurance plans for active employees through Blue Cross Blue Shield of Illinois (BCBSIL). Employees may enroll in the PPO, HMO, or Value HSA (HDHP) medical plans. Employees may also enroll in a vision plan through EyeMed; and
WHEREAS, the City has determined it is in the best interests of the City and its employees to renew its agreements with BCBSIL for the administration of its group health insurance plans for the 2027 plan year and to further approve the 2027 rates for each of the City's PPO, HMO, or Value HSA (HDHP) medical plans, as well as its vision plan, as detailed in Exhibit A attached hereto and made a part hereof, with no plan design changes other than an increase in the required family deductible for the Value HSA (HDHP) plan to $3,500, as required by Internal Revenue Service regulations; and
WHEREAS, the proposed 2027 City budget will provide funding for this item in the employee health account)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Mayor and/or the City's Chief Human Resource Officer is hereby authorized to enter into agreements with Blue Cross Blue Shield of Illinois (BCBSIL) for the administration of the City's Group PPO, HMO, and Value HSA (HDHP) medical plans, for the period of January 1, 2027, through December 31, 2027, subject to the review and approval by the City's Corporation Counsel as to form.
NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Group Health Insurance Rates for the 2027 plan year, which are detailed in Exhibit A attached hereto and made a part hereof, are hereby approved.