Submitted By
Jason Bajor, Interim Assistant Village Manager
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Approving the 2016 Employee Health Benefit Plan Documents, Design and Premiums
End
Overview
Overview
On November 2, 2015, the Village Board will be asked to approve the 2016 Employee Health Benefit Plan by approving Resolution 15-474, authorizing the Village Manager to execute insurance provider plan documents and establish the design of the health benefit plan and corresponding premiums.
Body
Staff Recommendation
Staff recommends the Village Board approve Resolution 15-474 and authorize the Village Manager to execute the plan documents and establish the employee health benefit plan design and premiums for 2016.
Fiscal Impact
The proposed 2016 Annual Budget includes a projected 5% increase to overall Medical/Rx premiums over those contained within the adopted 2015 Annual Budget. The Medical/Rx premiums presented within Exhibit A of this packet reflect increases ranging from 3.4% to 7.2% depending upon enrollment classification (e.g. single, single +1, or family) and plan option (e.g. PPO or HMO). The financial impact of these varying premium increases do not, however, exceed the projected estimates presented in the proposed 2016 Annual Budget. In addition, the Employee Health Fund reflects the costs associated with the health benefit plan and will be reviewed by the Village Board as part of their consideration and subsequent approval of the proposed 2016 Annual Budget.
Background
Some notable items of the 2016 health benefit plan design and corresponding premiums are as follows:
Medical/Rx - Blue Cross/Blue Shield:
Effective for 2016, the Village's Medical and Rx plan will be administered within a unified PPO/HMO Cost Plus contract. This change affords BC/BS to place more credibility on the Village's claims experience and results in lower claim projections and lower total stop-loss liability. The effect of lowe...
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