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Aurora, Illinois

File #: 20-0512    Version: 1 Name:
Type: Resolution Status: Passed
File created: 8/21/2020 In control: City Council
On agenda: 9/22/2020 Final action: 9/22/2020
Title: A Resolution Authorizing a Renewal Agreement with Aetna to Administer a Medicare Advantage Plan for Medicare Eligible Retirees for the Period of January 1, 2021 through December 31, 2021.
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TO: Mayor Richard C. Irvin

FROM: Alisia Lewis, Director of Human Resources

DATE: August 21, 2020

SUBJECT:
A Resolution Authorizing a Renewal Agreement with Aetna to administer a Medicare Advantage Plan for Medicare Eligible Retirees for the Period of January 1, 2021 through December 31, 2021.

PURPOSE:
To authorize a renewal agreement with Aetna to administer a Medicare Advantage Plan for Medicare eligible retirees.

BACKGROUND:
On January 1, 2018, the City of Aurora converted the Post-65 Medicare retirees from the City's Cigna OAP health plan to Aetna's Medicare Advantage Plan. Aetna's plan is a fully insured product which shifts the risk of claims from the City's self-insured plan to Aetna. The 2017 funding of the Post-65 Medicare retirees was approximately $5,700,000.


DISCUSSION:
Under the Aetna Medicare Advantage Product, the funding has been approximately:

2018: $1,946,899
2019: $1,718,385
2020: $2,010,658
2021: $1,930,599

Aetna's renewal for the Post-65 Medicare retirees assumes the same benefits.

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 ________________
title
A Resolution Authorizing a Renewal Agreement with Aetna to Administer a Medicare Advantage Plan for Medicare Eligible Retirees for the Period of January 1, 2021 through December 31, 2021.
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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 enter into a contractual relationship by...

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