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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Chief Human Resources Officer
DATE: 7/31/2023
SUBJECT:
A Resolution establishing Cigna Open Access Plan (OAP) and Value HSA(HDHP) Health Plan and Rates Effective January 1, 2024 through December 31, 2024.
PURPOSE:
To affirm the 2024 OAP and Value HSA(HDHP) schedule of benefits and establish the 2024 insurance premium rates of the City's OAP and Value HSA(HDHP) medical insurance.
BACKGROUND:
There are two self-funded plans for active employees through CIGNA. CIGNA's offerings include a Traditional Plan and a High Deductible Health Plan.
The 2023 OAP premium rates were increased 2.5% from the previous year.
DISCUSSION:
The OAP, and HDHP offerings have remained stable since January 1, 2016. However, the city's plan on a Per Employee Per Year cost is significantly higher than the Mercer Government Benchmark.
Year CIGNA Mercer*
2020 20,544 14,000
2021 22,452 14,665
2022 22,500 15,244
2023 23,287 15,625
2024 24,796 16,015
*Mercer's 2023 and 2024 costs are projections assuming a 2.5% on PPO.
The city evaluated CIGNA in the Spring and Summer of 2022 for the 2023 plan year. The Human Resources team requested early renewals from CIGNA which they provided. Medical inflation is rising due to medical providers wage increases and specialty medications utilization growth. The renewal rate is a 4% rate increase for the OAP and Value HSA (HDHP).
The City recommends approving the rates for the OAP and Value HSA health plan for 2024.
Attached are the 2023 and 2024 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 ________________
title
A Resolution establishing OAP and Value HSA(HDHP) Health Insurance Plans and Rates Effective January 1, 2024 through December 31, 2024.
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WHEREAS,...
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