Title
Employee Insurance Renewal FY2020
History
The Horton Group completed a market analysis on behalf of the Village of Orland Park and has provided final recommendations for the January 1, 2020, renewal of the following benefit programs:
* Medical/Rx
* Dental
* Vision
* Life and AD&D
* Short Term Disability
* Flexible Spending Account (FSA)
* Employee Assistance Program (EAP)
* Virgin Health Miles (Wellness Initiative)
* CHC Biometric Screenings (Wellness Initiative)
Based on the final analysis provided by The Horton Group, the following carriers/vendors associated with each benefit offering are being recommended effective January 1, 2020:
* BlueCross BlueShield of Illinois (Medical/Rx)
* Delta Dental of Illinois (Dental)
* EyeMed (Vision)
* Dearborn National (Life/AD&D, STD)
* Discovery Benefits (Flexible Spending Account and COBRA Administration)
* Metropolitan Family Services (Employee Assistance Program)
* Virgin Pulse (Pedometer and Rewards Program - Wellness Initiative)
* CHC (Biometric Screenings - Wellness Initiative)
* The Horton Group (Benefit Consultant)
Attached is a summary of the renewal for each benefit offered. Actual budgeted amounts will be adjusted to reflect the number of participants per plan. This summary also includes Trinity Services, the current provider of 24/7 crisis response services, for the Police Department and Village employees.
The Village Medical/Rx plan is partially self-funded and administered by an insurance carrier to provide the appropriate medical networks and administrative services. Proposals for the FY2020 Medical/Rx insurance administrator renewal are based on the carriers’ estimations of the Village’s expected claims for the year, stop loss coverage, and run-in claims. To ensure the best possible pricing, The Horton Group works on behalf of the Village to negotiate with carriers to obtain best and final offers.
BlueCross BlueShield of Illinois (BCBS) presented a renewal resulting in an increase in administrative costs and expected plan exposure, as well as the premium equivalents. BCBS proposed options account for expected claims, stop loss coverage, Affordable Care Act (ACA) fees and a general health insurance reserve. The recommended option includes maintaining the current HDHP/HSA, Silver PPO, and Blue Advantage HMO and removing the HMO Illinois plan for non-union employees.
Effective January 1, 2020, non-union employee premium contributions will continue to be based on a percentage of the overall premium cost and participation by the employee and their enrolled spouse in the biometric wellness screenings. The non-union employee premium contribution percentage share will be adjusted to industry standards as outlined in the attached chart.
Employees in the IBEW, AFSCME, Deputy Chief and Commanders, Metropolitan Alliance of Police (MAP), and Police Supervisors groups will be eligible for plans and make employee contributions based on the percentages or rates outlined in the collective bargaining agreements that expired on April 30, 2019, and are currently being negotiated. These rates include a wellness incentive rate for those employees that participate in the biometric wellness screening.
In addition, $194,600 is included in the Insurance Fund for estimated Village funding of the HSA accounts for those employees enrolled in the HDHP/HSA Plan.
Mr. Michael Wojcik from the Horton Group will be present at the Board of Trustee meeting on Monday, October 7, 2019, to explain the renewal process, results, and to answer any questions.
Financial Impact
The FY2020 budget will include the amount necessary to fully fund the various benefits listed above.
Recommended Action/Motion
I move to approve the agreements with the recommended carriers/vendors and associated expenses effective January 1, 2020.