Title
Employee Health Insurance Renewal FY2026
History
2026 Benefit Renewal Proposals (based on expected costs)
MMA *MMA **IPBC
(VOP covers (VOP Covers (VOP covers
first $100,000 first 125,000 first $50,000
per claim) per claim) per claim)
Net% Increase: 13.56% 10.75% 7.1%
Total Medical: $6,881,895 $6,737,777 $6,406,063
Total Ancillary: $482,466 $482,466 $453,562
Combined Total: $7,364,361 $7,220,243 $6,859,625
*Marsh McClennan Agency recommends increasing the initial cost that the Village is responsible for from $100,000 to $125,000 with no change to current employee benefits with an overall net increase equal to 10.75% over 2025.
**Intergovernmental Personnel Benefit Cooperative PPO plan is self-insured up to $2 million and then commercial stop loss is purchased for any claims over $2 million. The HMO plan is one group pool that is self-insured up to $500,000 and then commercial stop loss is purchased for any overage. IPBC offers no change to current employee medical plans; Dental changes from BC to Delta Dental; Vision changes from BCBS to VSP; Life changes from Dearborn to Securian; Disability Admin to be determined at a later date for overall net increase equal to 7.1% over 2025.
History
For the pending fiscal year 2026 employee health insurance renewal, the Village requested quotes from The Marsh McClennan Agency (MMA) who acquired the Horton Group in August 2024, and the Intergovernmental Personnel Benefit Cooperative (IPBC). Both agencies conducted a competitive market analysis for health insurance and all benefit lines for the Village of Orland Park’s (VOP) 2026 plan year.
In both cases, the results showed the Health Insurance market has high volatility due to several high-cost claimants as well as higher hospital, provider, and pharmacy costs. In addition, patient risk has also escalated. There continues to be a greater use of spe...
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