Submitted By
Kira Tchang, Assistant Village Manager/HR Director
Reviewed By
A.M. Zayyad, Deputy Village Manager
Agenda Item Title
Title
A Resolution Approving the 2025 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 2025 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 2025 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 2025 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 August 1, 2022, through July 31, 2024. Claims analysis and excess loss utilization, both for the Village organization and the healthcare market at large, drove a small premium rate increase for the 2025 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 for fiscal year 2025. The rate increase for Health Insurance is 2.5%.
Optional Dental Insurance with Delta Dental: (see Exhibit A for premiums)
Premiums for optional dental insurance are paid 100% by the employee. The Village is in year 2 of a 2-year rate guarantee with Delta Dental through 1/1/2026. There is no increase in dental insurance premiums.
Optional Vision Insurance with VSP: (see Exhibit A for premiums)
Premiums for optional vision insurance are paid 100% by the employee. VSP is proposing a 2-year rate guarantee through 1/1/2027. Premiums for VSP plans are decreasing by .03%.
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 remain unchanged and Mutual of Omaha is proposing a 2-year rate guarantee 1/1/2027.
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 are remaining unchanged. Mutual of Omaha is proposing a 2-year rate guarantee through 1/1/2027.
Flexible Spending Accounts (FSA) for Medical, Dependent Care and Transit
These optional Section 125 plans provide an opportunity for employees to use pre-tax dollars for eligible expenses. Allied Benefit Systems is the Village’s FSA/DCA carrier.
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 2025 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.