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 firm using historical data and other analytical analysis.
Healthcare costs continue to rise and increase in utilization of our plans impacts our self-insurance fund. To smooth these increases while using some excess fund reserve, a proposed monthly premium stipend, effective January of 2023, of an overall average 7% employee and 10% employer increase for the medical plan premium and a 3% dental plan premium increase for both employees and employers, has been included in the City Manager’s proposed FY2023 budget.
Various premium models for medical and dental were presented to and discussed with the Employee Benefits Committee on July 22nd and August 11, 2022. For both medical and dental, the committee recommends the model shown in the attachment, which is a variance on 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 2022 open enrollment period.