Insurance Renewals

1. CITY OF ALAMO HEIGHTS
ADMINISTRATION AND FINANCE DEPARTMENT
CITY COUNCIL AGENDA MEMORANDUM
TO: Mayor and City Council
FROM: Phil Laney, Assistant City Manager
SUBJECT: Approving the renewal of the contract with Blue Cross-Blue Shield for health
insurance, MetLife for dental, life, accidental death & dismemberment, and long-
term disability.
DATE: November 13, 2023
SUMMARY
Approving the renewal of the contract with Blue Cross-Blue Shield for employee health insurance,
MetLife for dental, life, accidental death & dismemberment, and long term disability 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 2023 was 6.35%. Our broker, Catto &
Catto, asked BCBS to reconsider and the renewal rate dropped to a -3.60% decrease for 2024.
There was a 17.01% increase for our PPO dental insurance with Metlife, and a 0% increase for
HMO dental insurance, life, AD&D, and LTD coverage. There will also be no increases in vision
insurance benefits for the city or employees, as it is 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
The total fiscal impact for the city is approximately $579,729.89 for the budgeted medical, dental,
vision, life, accidental death & dismemberment, and long-term insurance coverage, with a decrease
of $14,481.72. This action will encompass all employee insurance benefit costs including the
employer contribution strategy.
Phil Laney
Assistant City
Buddy Kuhn
City Manager