Title
Resolution authorizing the City Manager to renew the medical insurance plan with HUMANA, in an amount not to exceed $3,455,598 (12.2% cost increase over last year), for an additional one-year term, effective July 1, 2008; and further authorizing the renewal of the Blue Cross/Blue Shield dental plan (with no premium increase over last year) and Standard Insurance Company life insurance plan (with no premium increase over last year) for an additional one-year term, effective July 1, 2008.
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The area trend for health insurance premium increases is 14.73%. The City's claims experience has worsened in recent months. The City's health benefits consultant, Bob Shafer, was able to negotiate a renewal increase substantially less than 14% at 12.43%.
There will be no change in plan design, and the City will maintain the $30 per month dependent coverage subsidy for general employees who select HMO.
Blue Cross/Blue Shield and Standard Insurance Company have maintained the rates for 2008-2009 at the 2007-2008 level for dental and life insurance coverage, respectively.