TITLE
Consider a memorandum/resolution to recommend to the Employee Benefits Trust the selection of employee medical and dental insurance benefits effective October 1, 2020.
SUMMARY
DATE: June 23, 2020
TO: Kent Cagle, City Manager
FROM: Eva Bark, Executive Director of Human Resources
SUBJECT: RECOMMENDATION TO EMPLOYEE BENEFITS TRUST FOR APPROVAL OF GROUP EMPLOYEE MEDICAL/RX & DENTAL INSURANCE BENEFITS
BACKGROUND AND FINDINGS:
The City of Killeen offers medical and dental insurance as part of its employee benefits package. Currently, approximately 927 employees elect the City’s medical insurance plans, and approximately 1,157 employees elect the City’s dental insurance plans. The City currently pays 100% of the medical and dental care premiums for employee only on the lowest plan options. Employees may purchase additional medical and dental care coverage for eligible family members or dependents at their added expense. Current carriers for medical and dental insurances are United Health Care (UHC) and Lincoln Financial Group (Lincoln), respectively.
All benefits are reviewed annually to ensure that both the City and employees are receiving the best product for the best price. Due to anticipated increases based upon claims performance, the City requested renewal quotes from UHC and Lincoln in order to determine its vulnerability in the market, and to determine if renewing with UHC and Lincoln would be more advantageous then going out for bid inside a rapidly changing environment.
The medical renewal proposals included the City continuing to offer employees two healthcare plans, Plan 1: which is a High Deductible Healthcare Plan (HDHP) with a Health Savings Account (HSA) contribution, and Plan 2: which is Preferred Provider Organization (PPO) healthcare plan. With the following selection, the cost for healthcare would increase by 9.60%.
Plan 1 (HDHP) will have the following plan design changes:
? The Individual A...
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