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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Chief Human Resources Officer
DATE: 7/31/2023
SUBJECT:
A Resolution Establishing Health and Dental Insurance Monthly Rates for Pre-Medicare Retirees Effective January 1, 2024 through December 31, 2024.
PURPOSE:
To establish the 2024 health and dental insurance monthly rates for Pre-Medicare retirees.
BACKGROUND:
The Pre-Medicare retirees through CIGNA is a self-funded plan. January 1, 2018, the City carved out the Post-65 Medicare retirees to a Medicare Advantage Program and set separate funding rates for the active employees and the Pre-Medicare retirees to cover their necessary liabilities under the CIGNA plan.
DISCUSSION:
The OAP offerings have remained stable since January 1, 2016. However, the city's plan on a Retiree 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% increase 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. Renewal is a 4% increase for the Pre-Medicare retirees.
Retiree dental premiums and active employee dental rates are the same and there is no increase for 2024.
2023 and 2024 Pre-Medicare retiree contribution sheets are attached.
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 Establishing Health and Dental Insurance Monthly Rates of Contributions for Pre-Medicare Retirees Effective January 1, 2024 th...
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