1. CITY OF ALAMO HEIGHTS
ADMINISTRATION AND FINANCE DEPARTMENT
CITY COUNCIL AGENDA MEMORANDUM
TO: Mayor and City Council
FROM: Buddy Kuhn, City Manager
SUBJECT: Approving the renewal of the contract with Blue Cross-Blue Shield for health
insurance and MetLife for dental insurance.
DATE: November 8, 2021
SUMMARY
Approving the renewal of the contract with Blue Cross-Blue Shield for employee health insurance,
MetLife for dental insurance, and Davis Vision for vision insurance and authorizing the City
Manager to execute all necessary agreements for the provision of such insurance.
BACKGROUND INFORMATION
During the budget process, staff anticipated that medical insurance would increase by 15%. The
initial “no shop” rate provided to the City from BCBS for 2022 was 10%. Our broker, Catto &
Catto, asked BCBS to reconsider and the renewal rate dropped to a 3.5% increase for 2022.
There was a 0% increase for our dental insurance with Metlife. There will also be no increases in
other insurance benefits for the city or employees for vision, life or long term disability benefits as
they are locked in contractually.
POLICY ANALYSIS
This action is consistent with the City’s efforts to provide quality but affordable insurance benefits
to its employees and relieve the impact of the increased dependent coverage costs to the employees.
COORDINATION
Coordination with the city insurance broker, Catto & Catto, the city attorney as well as City
Councilmember John Savage.
FISCAL IMPACT
This action will save the city approximately $69,907 for the budgeted medical coverage. This
action will encompass all employee insurance benefit costs including the employer contribution
strategy.
Buddy Kuhn
City Manager