TITLE
The Mayor and City Council shall discuss and possibly take action to approve the FY12-13 employee benefits package with United Health Care for medical insurance, MetLife for dental insurance, Ameritas for vision insurance, Fort Dearborn for life insurance and Lincoln Financial for short term disability insurance and to authorize the City Manager to execute applicable contracts once drawn. Funding is to be appropriated in the FY12-13 budget contingent upon approval. Discussion and Action.
AGENDA ITEM DESCRIPTION
The benefit renewal process began in January 2012 when the City sought and obtained bids from numerous carriers. The bid summaries were presented to the Personnel and Benefit Subcommittee on March 28, 2012, and indicated significant premium increases from current fiscal year rates. Initially, the United Healthcare bid for medical insurance indicated an 18.9% increase over current year premiums. Additionally, the Guardian bid for dental insurance indicated a 13% increase and the Ameritas - VSP bid for vision insurance indicated a 4% increase over current year premiums. It should also be noted that staff presented a self-funded medical insurance option to the Personnel and Benefit Subcommittee in order to explore additional health insurance options.
Subsequent to the March 28, 2012 presentation to the Personnel and Benefits Subcommittee, the City's benefits' consultant continued to negotiate with the insurance carriers to reduce the cost of health insurance to the City and employees and attempt to maintain adequate coverage levels. On April 10, 2012, staff presented final health insurance bids to the Personnel and Benefits subcommittee and received recommendations to move forward with the FY12-13 request as outlined below.
Current Year (FY11-12) Health Plan Providers
The current health benefit plans providers are as follows:
·Medical insurance
·United Healthcare
·Base Plan - $500 deductible
·Buy Up Plan - $250 deductible
·High Deductible H...
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