Submitted By
Kira Tchang, Assistant Village Manager/HR Director
Reviewed By
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Agenda Item Title
Title
A Resolution Approving the 2024 Employee Health, Dental, Vision, Life, Accidental Death and Dismemberment, Accident, and Critical Illness Insurance Providers’ Plan Designs and Premiums and Authorizing Their Execution
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Overview
Overview
This is an annual agenda item to approve various contract providers for the 2024 Employee Health, Dental, Vision, Life and Accidental Death and Dismemberment Insurance, Voluntary Worksite Benefits (Critical Illness and Accident) and Excess Loss administration with Blue Cross Blue Shield.
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Recommendation
Recommendation
Adopt the Resolution.
Background
This is an annual agenda item to approve various contract providers for the 2024 Employee Health, Dental, Vision, Life and Accidental Death and Dismemberment Insurance, Voluntary Worksite Benefits (Critical Illness and Accident) and Excess Loss with Blue Cross Blue Shield.
The proposed 2024 Employee Benefits plan includes:
Health Insurance with Blue Cross Blue Shield of Illinois: (see Exhibit A for premiums)
Renewal projections from BCBS are based on a two (2) year look back at Village healthcare expenses from June 1, 2021 through May 1, 2023. Claims analysis and excess loss utilization, both for the Village organization and the healthcare market at large, drove premium rate increases for the 2024 plan year. The Village will continue to offer a PPO, HMO Illinois, Blue Advantage HMO and High Deductible Health Plan (HDHP) health insurance offerings for the new plan year. The Village does not intend to make any plan design changes at this time due to higher than average rate increases across all plans.
Optional Dental Insurance with Delta Dental: (see Exhibit A for premiums)
Premiums for optional dental insurance are paid 100% by the employee. Rates increased 4.27% from 2023.
Optional Vision Insurance with VSP: (see Exhibit A for premiums)
Premiums for optional vision insurance are paid 100% by the employee. Premiums for these plans are currently in a rate guarantee through 2024.
Village Life Insurance Benefit and Optional Life & AD&D with Mutual of Omaha:
The life insurance for full-time employees and Voluntary Life and Accidental Death and Dismemberment insurance will continue to be carried through Mutual of Omaha. Rates for Life and AD&D insurance are currently in a rate guarantee through January 1, 2025.
Optional Worksite Benefits with Mutual of Omaha
These optional worksite benefits include Critical Illness and Accident coverage. Premiums for these plans are paid 100% by the employee and are currently in a rate guarantee through 2025.
Fiscal Impact
The Village of Oak Park has a self-funded plan that is budgeted in the Village’s Health Insurance Fund. Revenues include employee, retiree and COBRA health insurance premiums and employer contributions. Payments for Health Insurance Claims that fall below the excess loss coverage are paid directly through account # 6028-41080-101-520683.
Premium equivalent rates are determined based on the renewal projections. For the 2024 plan year, the health insurance fund revenues via employee, employer and retiree premiums and expenditures via claims project a moderate surplus.
DEI Impact
N/A
Alternatives
Although the Village is legally required to provide health insurance to its employees and retirees in some form based upon statute and collective bargaining agreements, the Village Board may direct staff to make changes to the plan documents and corresponding plan design and premiums, however, the latitude or extent of any desired changes by the Board is also subject to statute and collective bargaining agreements.
Previous Board Action
N/A
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
Should the Village Board approve the execution of plan documents and premiums, staff will then proceed to conduct Open Enrollment in late October and early November.
Intergovernmental Cooperation Opportunities
The Intergovernmental Personnel Benefit Cooperative (IPBC) has been discussed in the past. The Village is unique in that we have a self-funded plan that has not seemed to complement the needs of other local agencies. We will continue to periodically review where we might find opportunities to partner in the future.