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.
After a lower-than-expected claims year in 2020 due to the impact of COVID-19, monthly claims data continues to rise starting in late 2020 through current data. To smooth increases while using some excess fund reserve, a proposed monthly premium stipend, a 10% medical plan premium and 3% dental plan premium increase for employees, effective January of 2022, has been included in the City Manager’s proposed FY2022 budget.
Premium models for dental and vision were presented to and discussed with the Employee Benefits Committee on August 12, 2021. For both medical and dental, the committee recommends the model shown in the presentation, which is a variance on both plans to reflect more of the average claims experience by tiered coverages. Staff recommends these premium changes and seeks City Council approval. Staff will then communicate these changing during the October 2021 open enrollment period.
On August 25, 2021, GGAF approved and recommend to Council the change specified in the resolution.