Title/Name/Summary
2007-2008 Employee Insurance Renewal
History
The Village’s medical, prescription drug, dental, vision, and life/AD&D insurance plans run from October 1 to September 30 of each year. Renewal information for the upcoming year has been supplied by the Village’s current providers; Blue Cross/Blue Shied (BCBS) - PPO and HMO Illinois for medical and prescription coverage, Delta Dental, Vision Service Plan (VSP) and Fort Dearborn Life Insurance. The Horton Group analyzed our current plans and marketed each of our existing plans to determine if more cost effective carriers are available.
Based on the research and analysis conducted by The Horton Group, we recommend renewal to continue medical and prescription coverage with Blue Cross Blue Shield, to continue dental, vision and life coverage with Delta Dental of Illinois, VSP and Fort Dearborn Life, and to continue consulting services with the Horton Group. A summary of supporting information for these recommendations is provided.
Medical
BCBS is still the favored carrier for the Village. Markets were approached and declined to provide competitive quotes. The Blue Cross renewal is quoted below industry trend at 8.2%.
Recommend keeping BCBS as the incumbent medical and prescription drug carrier.
Dental
Delta Dental quoted an overall .59% increase which includes administration and claims funding. Fixed costs and the claims funding factor increased slightly. Delta remains competitive when compared to other markets, recommend keeping Delta Dental as the Village’s dental provider.
Life/AD&D
Fort Dearborn Life Insurance is the current carrier and quoted no increase to the current rates. Based on market analysis, no change recommended.
Vision
Vision Service Plan (VSP) the Village’s current vision carrier agreed to a rate guarantee of the current rates through 2008. Based on market analysis, no change recommended.
Financial Impact
In summary, the rate changes for the 2007/08 and recommende...
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