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TO: Mayor Thomas J. Weisner
FROM: Alisia Lewis, Director of Human Resources
DATE: October 9, 2015
SUBJECT:
A Resolution Establishing PPO and HDHP Health Insurance Plans and Rates Effective January 1, 2016 through December 31, 2016
PURPOSE:
To affirm the 2016 proposal to implement Plan C Prime schedule of benefits and establish the 2016 insurance benefit contribution rates of the city's PPO and HDHP medical insurance.
BACKGROUND:
Several years ago the city implemented Plan C plan design which lowered the cost of health insurance coverage for the city. The city was also able to negotiate a move from a percentage of base pay to percentage of premium for employee contributions with collective bargaining groups. As a result of the most recent negotiations with the unions, the city was able to negotiate some flexibility in making plan design changes with the limitation of not exceeding a 50% increase in overall cost to employees.
Each year the city establishes base premium rates for its self-insured PPO and HDHP plans.
DISCUSSION:
In benchmarking the city's current plan design against comparable plan designs, Plan C Prime brings the city more in line with current practices. Plan C Prime plan design maintains the same service coverage offered in Plan C. The primary changes are reflected in the employee contributions for deductibles, out of network employee cost and prescription cost. Where the city cost to services may be slightly higher than the benchmarking, the overall reduction in premiums of 5.9% to employees more than balances out the increases as well as puts the city in a more favorable position to avoid the upcoming ACA Cadillac tax. Attached is the Proposed 2016 Plan C Prime Schedule of Benefits and current Plan C Schedule of Benefits for comparison. Also attached is the proposed 2016 HDHP benefits schedule. There are no changes from the 2015 HDHP benefits schedule.
The Proposed 2016 PPO and HDHP premium rates refle...
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