Submitted By
Julia Valdez, Assitant Village Manager/Human Resources Director
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Approving the 2018 Employee Health, Dental, Vision, Life and Accidental Death and Dismemberment Insurance Providers' Plan Designs and Premiums and Authorizing their Execution
End
Overview
Overview
This is an annual agenda item in which the Board is asked to approve the 2018 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 2018 Annual Budget includes a projected increase of 4% to overall Medical/Rx premiums. In addition to increasing the premiums by 4%; cost allocation for the entire premium expense was shifted slightly to allow the Village to move towards the financial goal of the employee paying 18% of the premium. All adjustments were made within the parameters of the Village's Collective Bargaining Agreements (CBA's).
Analysis:
The Village has seen an increase of 12.56% in total cost to the health plan (inclusive of claims, administrative fees and RX) for the 24 months of experience from June 2015 through May of 2017. This window of experience is the point in time that is used to determine our proposed premiums, administrative fees and RX expenses for 2018. Where the Village has had positive financial experience is that expenses for claims were significantly lower than expected (-27%), expenses for Rx increased by 18% January 2017 through July 2017 and are expected to continue an upward climb. It has been the Village's prudent management of the health expenses and the health fund in the past, that has allowed staff to minimize the impact to the employees to the greatest extent possible in 2018 while maintaining the tradition of sound fiscal management of the health and voluntary benefits and their relat...
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