This document summarizes recommendations to renew contracts with BlueCross BlueShield for medical insurance and MetLife for dental insurance. BlueCross BlueShield is proposing a 3.3% decrease for one plan and a 2.15% increase for another plan, with deductibles increasing to $5,000. MetLife dental insurance is proposing a 9.6% increase. Adding a Health Reimbursement Account is also recommended to reimburse employees for out-of-pocket costs between $3,000 and $5,000. The recommendations would result in total savings of approximately $37,829 for the budget.

1. An Ordinance approving the renewal of
contracts with BlueCross BlueShield for
medical and MetLife for dental insurance
Presented by: Lori Harris
Human Resources Manager
Item # 11
City Council Meeting
November 13, 2017

2. BACKGROUND
Catto & Catto and Financial Benefits
Services (FBS) obtained renewals for
Medical and Dental Insurance
The following companies submitted bids:
Medical: BlueCross BlueShield, Aetna,
Humana, & United Healthcare
Dental: MetLife, Aetna, Humana, & United
Healthcare

3. Recommendations for Employer Paid
Coverage
 Medical:
 BlueCross BlueShield is proposing a 3.30% decrease for the
HSA base plan and a 2.15% increase for the PPO Buy Up plan.
 Employee pays the premium increase for the Buy Up plan
 Both plans have a $1,000 increase for the deductible from
$4,000 to $5,000.
 Propose adding a Health Reimbursement Account
 Dental:
 MetLife PPO is proposing a 9.60% increase and was the lowest
proposed rate and a $2,131 annual increase
 MetLife DHMO is proposing no increase

4. Recommendations for Employer Paid
Coverage
Vision:
Davis Vision rates are guaranteed for another 3
years
Basic Life with AD&D:
5 Star rates are guaranteed for another 2 years
LTD:
Symetra rates are guaranteed for another 2 years

5. HEALTH REIMBURSEMENT ACCOUNT
(HRA)
IRS approved, employer funded, tax-
advantaged employer health benefit plan that
reimburses employees for out-of-pocket
medical expenses.
Reimburse employee and dependents after
they reach $3,000 in deductibles up to the
maximum out of pocket of $5,000.

6. FISCAL IMPACT
 Medical decrease in premiums of 3.30%. Total
premiums paid are $449,059 which is an $84,960
annual savings in the budget.
 HRA funding based on past experience is
estimated at $45,000
 Dental increase of 8.77%. A $2,131 annual
increase.
 Total savings approximately $37,829 in the budget

7. QUESTIONS?