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TO: Mayor John Laesch
FROM: Elizabeth Coronado, Director of Human Resources
DATE: 09/04/2025
SUBJECT:
A Resolution Authorizing Blue Cross Blue Shield Blue of Illinois (BCBSIL) for Group Health Care Services and Rates for the period of January 1, 2026, through December 31, 2026.
PURPOSE:
To affirm the 2026 HMO, PPO and Value HSA(HDHP) schedule of benefits and establish the 2026 insurance premium rates of the City's HMO, PPO and Value HSA(HDHP) medical insurance.
BACKGROUND:
The City of Aurora provides a self-funded health plan for active employees and pre-65 retirees through Blue Cross Blue Shield of Illinois. The employees and pre-65 retirees can enroll in a HMO, PPO, OR HDHP health plan. 2025 we moved the PPO and HDHP to BCBSIL from CIGNA and convert the BCBSIL HMO to the self-funded plan.
DISCUSSION:
The HMO, PPO, and Value HAS(HDHP) offerings have remained stable since January 1, 2016. However, the City's plan on a Per Employee/Retiree Per Year cost is significantly higher than the Mercer Government Benchmark.
Year HMO Mercer CIGNA Mercer
2020 $18,312 $15,862 $20,544 $14,000
2021 $18,655 $16,258 $22,452 $14,665
2022 $17,691 $16,665 $22,500 $15,244
2023 $18,441 $15,274 $21,780 $16,457
2024 $19,548 $15,656 $23,016 $16,868
2025* $19,548 $16,470 $23,706 $17,745
The 2026 renewal rate is 2.5% for PPO and HMO. The 2026 renewal rate is 10% for Value HSA (HDHP).
The City recommends approving the rates for the HMO, PPO and Value HSA(HDHP) health plan for 2026.
Attached are the 2025 and 2026 rates for comparison
*2025 Projection.
IMPACT STATEMENT:
No impact.
RECOMMENDATIONS:
Place on the Finance Committee calendar for approval to City Council.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing Blue Cross Blue Shield Blue of Illinois (BCBSIL) for Group Health Care Services and Rates for the period of January 1, 2026, t...
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