cover
TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Chief Human Resources Officer
DATE: August 18, 2021
SUBJECT:
A Resolution Establishing Health and Dental Insurance Monthly Rates of Contributions for Pre-Medicare Retirees Effective January 1, 2022 through December 31, 2022.
PURPOSE:
To establish the 2022 health and dental insurance monthly rates of contributions for Pre-Medicare retirees.
BACKGROUND:
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 costs is based on the applicable level of coverage chosen at the time of retirement and pursuant to whichever pay plan or collective bargaining agreement is currently in effect.
DISCUSSION:
Over the past two years claims have remained low resulting in no premium increases. However, claims are trending significantly higher for the pre-65 retirees for this year. The cost surge has resulted in a recommendation of a 22% premium rate increase. Caps in the respective collective bargaining agreement will help mitigate the cost.
Retiree dental premiums and active employee dental rates are the same and there is no increase for 2022.
The City recommends approval of the premium rates for the pre-Medicare retirees.
2021 and 2022 pre-Medicare retiree contribution sheets are attached.
Retiree caps by group attached.
IMPACT STATEMENT:
No impact
RECOMMENDATIONS:
Place on the Finance Committee calendar for approval to City Council.
cc: Finance Committee
...
Click here for full text