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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Chief Human Resources Officer
DATE: August 17, 2021
SUBJECT:
A Resolution Establishing Cigna Open Access Plan (OAP) and Value HSA(HDHP) Health Plan and Rates Effective January 1, 2022 through December 31, 2022.
PURPOSE:
To affirm the 2022 OAP and Value HSA(HDHP) schedule of benefits and establish the 2022 insurance premium rates of the City's OAP and Value HSA(HDHP) medical insurance.
BACKGROUND:
Each year the City establishes base premium rates for its self-insured OAP and Value HSA (HDHP) plans. Cigna has been the City's health insurance administrator for the OAP and Value HSA(HDHP) plans since 2016.
The 2021 OAP premium rates were increased 0% from the previous year.
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. Currently all groups are on the same OAP plan design.
The Value HSA (HDHP) plan continues to be the most cost-effective plan to the employees and the City. Claims are relatively stable and flat enough that there will be no rate change for the premium. For the 7th consecutive year, the Value HSA (HDHP) premiums will also not increase.
The City has maintained a fiscally responsible position regarding the benefits budget. The City continues to promote and communicate certain containment measures to help manage and keep down cost. The active OAP population cost has trended up at the rate of medical inflation resulting in a 7.5% rate increase for 2022.
The City recommends approving the rates for the OAP and Value HAS health plan for 2022.
Attached are the 2021 and 2022 rates for comparison.
IMPACT STATEMENT:
No impact.
RECOMMENDATIONS:
Placed on the Finance Committee calendar for approval by Finance Committee.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Establishing OAP and Value HSA(HDHP) Health Insurance Plans and Rates Effective January 1, 2022 through December 31, 2022.
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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 Value HSA (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 2022 City of Aurora OAP and Value HSA (HDHP) rates of all plans are hereby adopted as attached hereto.