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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Director of Human Resources
DATE: August 23, 2018
SUBJECT:
A Resolution Establishing Heath and Dental Insurance Monthly Rates of Contributions for Pre-Medicare Retirees Effective January 1, 2019 through December 31, 2019.
PURPOSE:
To establish the 2019 health and dental insurance monthly rates of contributions for pre-Medicare retirees.
BACKGROUND:
Based on analytic data, the city was advised to separate the premium for pre-Medicare retirees from active employees and Medicare eligible retirees. The pre-Medicare retiree group had a 2.3 M deficit year-end projection. January 1, 2018, the City set separate funding rates for the Pre-65 retirees in order to cover their necessary liabilities under the CIGNA plan.
The premium rates of health and dental insurance for all pre-Medicare retirees and their qualified dependents are adjusted accordingly from the prior year's rates on the basis of past actual claims experience, projected current loss experience and medical and dental costs associated with the OAP health insurance and dental plan currently offered by the city. The city offers three tiers of insurance for retiree, retiree + 1 and retiree + family coverage. Retirees cost is based on the applicable level of coverage chosen at time of retirement and pursuant to whichever pay plan or collective bargaining agreement is currently in effect.
DISCUSSION:
The pre-65 retiree costs have stabilized due to the changes made last year including adjusting the retirees premium rate and separating out the Medicare retirees to Aetna. In addition the claim is experience was favorable for the 2018 year. Based on these factors, the city will be lowering premium rates 28% for 2019 over 2018 rates.
Retiree dental premiums are the same as for active employees and there is no increase for 2019.
2019 pre-Medicare retiree contribution sheets are attached.
IMPACT STATEMENT:
No Impact
RECOMMENDATIONS:
Place on the Fin...
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