The city manager is presenting health insurance renewals for 2022. Catto & Catto obtained renewals that are below the projected 15% budget increase. BlueCross BlueShield is proposing a 3.5% increase for the base medical plan while dental benefits will have no premium increase. The renewals are consistent with providing quality affordable benefits for employees and relieving increased dependent coverage costs.

1. ADMINISTRATION
Presented by:
Buddy Kuhn
City Manager
HEALTH INSURANCE RENEWAL
ITEM # 7
NOVEMBER 8, 2021

2. SUMMARY
 Catto & Catto obtained renewals for Medical
Insurance Coverage for 2022
 Renewals obtained were below the projected
budgeted increase of 15%
 Dental benefits will have no increase in
premium for 2022

3. RECOMMENDATIONS FOR EMPLOYER PAID
COVERAGE
 Medical:
 BlueCross Blue Shield is proposing a 3.5 % increase for the HSA
base plan.
 Dental:
 MetLife is proposing a 0% increase for the DHMO plan and
the PPO Plan
 No increase for Vision, Basic Life with AD&D or LTD coverage

4. POLICY ANALYSIS
 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

5. COORDINATION
 Review by Catto & Catto
 Reviewed by the City Attorney
 Coordination with Councilmember John Savage

6. FISCAL IMPACT
 Medical coverage budgeted savings is approximately
$69,907
 All other city benefits including the Health Reimbursement
Account (HRA) continue to be covered by savings
 Employees will continue to receive annual maximum
contribution of $1,250 per employee deposited in to
Health Savings Account (HSA)