cover
TO: Mayor John Laesch
FROM: Michele Clark, Chief Human Resource Officer
DATE: August 27, 2026
SUBJECT:
A Resolution Authorizing an Agreement with Blue Cross Blue Shield of Illinois (BCBSIL) for the Administration of Employee Group Health Insurance and Further Establishing Group Health Insurance Plan Rates for the period of January 1, 2027, through December 31, 2027
PURPOSE:
To authorize administrative services agreements with BCBSIL for employee group health insurance and to establish the 2027 schedule of benefits and insurance premium rates for the City’s PPO, HMO, and Value HSA (HDHP) medical and vision plans.
BACKGROUND:
The City of Aurora provides self-funded group health plans for active employees through Blue Cross Blue Shield of Illinois (BCBSIL). Employees may enroll in the PPO, HMO, or Value HSA (HDHP) medical plans. Additionally, the City offers vision coverage through an existing multi-year contract with EyeMed and its affiliate.
DISCUSSION:
The proposed 2027 health insurance renewal includes a 15% premium increase for the PPO plan, a 20% premium increase for the Value HSA (HDHP) plan, and a 25% increase to the HMO base funding rate.
The City recommends renewing its agreements with BCBSIL and additionally approving the proposed 2027 rates for the PPO, HMO, and Value HSA (HDHP) medical and vision plans.
There are no plan design changes other than an increase in the required family deductible for the Value HSA (HDHP) plan to $3,500, as required by Internal Revenue Service regulations.
Medical and prescription drug cost trends, claims experience, and the City’s funding requirements are the primary factors driving the proposed increases. The proposed 2027 rates are included in the attached exhibit.
IMPACT STATEMENT:
NA
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 Au...
Click here for full text