TO: Finance Committee
FROM: Elizabeth Coronado Abrego, Director of Human Resources
SUBJECT:title Approval of Group Health, Dental, Vision, and Life Insurance Renewal for Active and Retiree Employees
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BACKGROUND:
The City of Joliet provides a self-funded health insurance plan for active employees and pre65 retirees through Blue Cross Blue Shield of Illinois (BCBSIL). Active employees and pre65 retirees can enroll in the HMO, PPO, or HDHP medical plans. The City also provides group health, dental, vision, and life insurance benefits (“benefits”) to approximately 120 nonunion employees/officials, 725 union employees, and 745 retirees.
Benefits for nonunion employees are governed by ordinance, while union employee benefits are governed by collective bargaining agreements. The purpose of this agenda item is to renew the contract with BCBSIL for health, dental, and vision insurance and adopt the benefits offered to active and retired employees for plan year 2027.
DISCUSSION:
Medical Plans (PPO, HMO, HDHP)
Although the PPO plan design remains stable, the City’s peremployee/retiree peryear (PEPY) cost remains higher than the MMA benchmark.
MMA benchmark average annual PEPY: $22,561.56
City of Joliet current PEPY: $23,961.35
The City is expanding its health insurance offerings to include both HMO and HDHP plan options for 2027, giving employees more choices to align their coverage with their individual healthcare needs and financial preferences. Additionally, the City is also introducing the Benistar Medicare Advantage solution for post65 retirees, providing a streamlined, costeffective group retiree medical plan supported by Medicaretrained specialists and enhanced benefit coordination. BCBSIL’s 2027 medical renewal rate is 7%. The City recommends approving the renewal rates for the PPO, HMO, and HDHP medical plans. Proposed rates are attached.
Projected Cost Impact
BCBSIL estimates an overall City cost increase of 7.65% for 2027. This projected increase...
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