Per Fiscal and Budgetary Policy annual premiums will be recommended to City Council through a collaborative process between the City’s Employee Benefit Committee and external Health Benefits Consulting form using historical data and other analytical analysis.
Monthly claims data continue to track right at budget. However, our claims cost are expected to rise. In order to smooth increases while using some excess fund reserve, a medical and dental plan premium increase of 5% for employees, effective January of 2020, has been included in the City Manager’s proposed FY 2020 budget.
Premium models for dental and vision were presented to and discussed with the Employee Benefits Committee on July 16, 2019. For both medical and dental, the committee recommends the model shown in the presentation, which is a flat 5% across both plans and across all of the enrollment tiers for medical.
The Employee Benefits Committee considered multiple options to achieve the 5% from employees for both the medical and dental plans and recommends the models included in the presentation. Staff recommends these premium changes and seeks City Council approval. Staff will then communicate these changing during the October 2019 open enrollment period.
On July 24, 2019 the GGAF approved and recommend to Council the change specified in the resolution.