Submitted By
Julia Valdez, Assitant Village Manager/Human Resources Director
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Approving the 2017 Employee Health Benefit Plan Documents, Design and Premiums and Authorizing their Implementation and Execution
End
Overview
Overview
This is an annual agenda item in which the Board is asked to approve the 2017 Employee Health Benefit Plan 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
Approve the Resolution.
Fiscal Impact
The proposed 2017 Annual Budget includes a projected 2% increase to overall Medical/Rx premiums over those contained within the adopted 2016 Annual Budget. The Medical/Rx premiums presented within Exhibit A of this packet reflect the continued philosophy to right-size the health fund and to continue to prepare for increased costs in stop loss and drug claims. The financial impact of these varying premium increases do not impact the proposed 2017 budget.
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 2017 Annual Budget.
Background
Some notable items of the 2017 health benefit plan design and corresponding premiums are as follows:
Medical/Rx - Blue Cross/Blue Shield:
Maintains the status quo for the Village's Medical and Rx plan in 2017, continuing with the successful administration of a unified PPO/HMO Cost Plus Contract. This change affords BC/BS to place more credibility on the Village's claims experience and has resulted in lower claim projections and lower total stop-loss liability. The effect of this approach has resulted in lower claim projections for 2017 with performance running -5.98% less in the first six months of 2016. It is has also served to stabilize the Village's fixed-costs associat...
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