The document summarizes the renewal of health, dental, and vision insurance contracts for city employees. It recommends approving the renewal of contracts with Blue Cross Blue Shield for health insurance at a 9.96% increase, MetLife for dental insurance at a 0-2.55% increase, and Davis Vision with no increase. The renewal would save the city approximately $53,972 compared to original budget estimates and relieve costs to employees.

1. CITY OF ALAMO HEIGHTS
ADMINISTRATION AND FINANCE DEPARTMENT
CITY COUNCIL AGENDA MEMORANDUM
TO: Mayor and City Council
FROM: Lori Harris, Human Resources Manager
SUBJECT: Approving the renewal of the contract with Blue Cross-Blue Shield for health
insurance and MetLife for dental insurance.
DATE: November 9, 2020
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 20%, dental
by 10% and vision by 5%. On October 22, 2020, Catto & Catto provided a briefing on the plans
received, as well as the revised renewal rates from Blue Cross-Blue Shield, MetLife and Davis
Vision. Catto & Catto received rates which they subsequently evaluated based on key criteria such
as quality of coverage, cost and the City’s utilization patterns. Catto & Catto conducted a
comprehensive evaluation of the plans to identify the most favorable insurance plans for City
employees. Renewal rates for the medical HSA base plan showed a 9.96% increase. Renewal rates
for the dental DHMO plan showed a 0% increase and a 2.55% increase for the PPO plan. Rates for
the vision plan did not increase.
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.
FISCAL IMPACT
This action will save the city approximately $52,151 for the budgeted medical coverage, a savings
of approximately $1,532 for the budgeted dental coverage and a savings of approximately $289
for the budgeted vision coverage in the FY 2020-2021 Budget. Total budgeted savings is
approximately $53,972. This action will encompass all employee insurance benefit costs including
the employer contribution strategy.
Lori Harris
Human Resources Manager
Buddy Kuhn
City Manager