Title
Village of Orland Park Employee Insurance Renewal FY2019
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, 2019 renewal of the following benefit programs:
• Medical/RX
• Dental
• Vision
• Life and AD&D
• 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, 2019:
• BlueCross BlueShield of Illinois (Medical/RX)
• Delta Dental of Illinois (Dental)
• EyeMed (Vision)
• Discovery Benefits (Flexible Spending Account 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. Overall, this is a favorable renewal resulting in an approximate 6% decrease in insurance fund expenses. A long term focus on our employee benefit strategy of consumerism, choice, and wellness along with the reduction of lives on the plan in 2019 contributed to the decrease. This summary also includes Trinity Services, the current provider of 24/7 crisis response services, for the Police Department and Village employees. The Police Department has applied for a grant to help offset the cost of these services.
The Village Medical/Rx plan is self-funded and administered by an insurance carrier to provide the appropriate medical networks and administrative services. Proposals for the FY2019 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 a decrease in 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, as well as the reduction in lives covered on the plan. The recommended option includes maintaining the current HDHP/HSA, Silver PPO, and HMO plans, as well as adding a Blue Advantage HMO and eliminating the Gold PPO for non-union employees. In addition, starting January 1, 2019, the Orland Park Public Library will no longer participate in the Village’s employee benefits program.
Effective January 01 2019, 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 make employee contributions based on the percentages or rates outlined in the collective bargaining agreements effective, May 1, 2015 - April 30, 2019. These rates include a wellness incentive rate for those employees that participate in the biometric wellness screening.
In addition, $232,400 is included in the Insurance Fund for 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 Finance Committee meeting on October 1, 2018 to explain the renewal process, results, and to answer any questions.
On October 1, 2018, this item was reviewed by the Finance Committee, recommended for approval and referred to the Village Board of Trustees for consideration.
Financial Impact
The FY2019 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, 2019.