R-1948 - 05/25/2021 - PERSONNEL - Resolutions ITEM 8.A.2
BOARD OF TRUSTEES MEETING
V1 1 i A(,F OF SAMUEL E. DEAN BOARD ROOM
OAK BRq
ikK . BUTLER GOVERNMENT CENTER
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
May 25, 2021
SUBJECT: Health, Third Party Administrator and Stop Loss Insurance, Dental,
Life/AD&D Insurance, Vision Insurance & Telemedicine
Agreements for 2021 - 2022 Plan Year
FROM: Kathy Vonachen, Human Resource Director
BUDGET SOURCE/BUDGET IMPACT: Program 126-Employee Benefits
RECOMMENDED MOTION: I move to approve Resolution 2021-PL-IS-R-1948,
" A Resolution Approving and Authorizing the Purchase of Insurance Benefits
for Employees and direct staff to execute Agreements after receiving final
attorney review with B1ueCross BlueShield (BC/BS) of Illinois for Group Health
Insurance Coverage, Third Party Administrator (TPA) Service, and Stop Loss
Insurance as well as Guardian for Dental, Dearborn National for Life, EyeMed
for Vision, and 180OMD for telemedicine in the Plan Year starting July 1, 2021
through June 30, 2022".
Background/History:
The Village operates a self-insured health insurance program for all PPO claims on a
per individual basis for the first $85,000 ("individual specific attachment point or
ISL") of claims in a given plan year (July 1 to June 30). This program has been in
place in this format since 1993, but with different specific attachment points and
TPAs. The Village secures Stop Loss Coverage for claims that exceed $85,000
per individual or over 125% of the annual aggregate attachment point of expected
claims. The Oak Brook Park District is also on our plan paying the full premium cost
for all eligible individuals. The Village also offers a fully-insured HMO plan to all
employees. As of March, the Village health benefit program has approximately 157
employees that include eligible dependents totaling 438 members.
BOT 042721 AGENDA Page 1
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Renewal Information:
The PPO medical plan was marketed to four carriers by our broker Vista National and
unfortunately three carriers declined to quote due to claims utilization and one provided an
uncompetitive fully insured quote. Due to our enrollment on the PPO medical plan,BC/BS
will not allow us to carve out the Stop Loss because they require at least 500 enrolled
employees. The HMO medical plan was marketed to four carriers and, similar to last year,
three declined to quote due to their rates being uncompetitive and one provided an
uncompetitive fully insured quote.
Medical: BCBS's proposal for the PPO has an overall increase of+6.29% or approximately
$206,595 higher than our current plan year in total liability,although our premium equivalent
contribution rates are increasing by +6.49%. When reviewing the BCBS proposal, there are
a few key areas to highlight: (1) the estimated fixed costs were increased by +25.23% or
approximately $97,755 and (2) this year BC/BS is requesting an increase of +3.76% or
approximately $108,840 in claim liability.
For the HMO there will be an increase of+1.00% for the 2021 — 2022 policy year. As a
reminder, there are the Affordable Care Act (ACA) fees which were increased this year.
The estimated total cost for the PPO policies will be around $869.82 for this plan which is
now only the Patient-Centered Outcomes Research Institute Fee (PCORI). The last year for
the Transitional Reinsurance fee was 2016.
Dental: For the 2021 renewal, Guardian proposed a+4.93%increase in rates. The carriers that
declined to quote or provided an uncompetitive quote were Ameritas, BCBSIL, Delta Dental,
Lincoln, Metlife, Mutual of Omaha, Principal, and SunLife, and Unum.
Life/AD&D: Blue Cross Blue Shield(formerly known as Dearborn National) is in a rate guarantee.
The next renewal will be July 1,2022.
Vision: The Village is in a rate guarantee with EyeMed until July 1,2022. Therefore, there will be
no additional costs associated with this benefit plans.
Telemedicine: The Village implemented 1-80OMD Telemedicine in 2017. The Village will
continue to promote education on this service.
The Village will continue to promote its wellness program allowing those who receive
insurance up to 2% off their premium and for those without insurance the opportunity to
receive gift cards for achieving pre-determined wellness goals. Overall, the program
continues to provide many opportunities for employees to continue their healthy efforts.
These programs include annual wellness evaluation, lunch and learn programming and
group fitness activities such as the pink 5k event at the Oak Brook Park District.
Recommendation:
The Board approves Resolution 2021-PL-IS-R-1948 as presented.
BOT 042721 AGENDA Page 2
THE VILLAGE OF OAK BROOK
COOK AND DUPAGE COUNTIES, ILLINOIS
RESOLUTION
2021-PL-IS-R-1948
A RESOLUTION APPROVING AND
AUTHORIZING THE PURCHASE OF
INSURANCE BENEFITS FOR EMPLOYEES
GOPAL G. LALMALANI, Village President
CHARLOTTE K. PRUSS, Village Clerk
LAURENCE HERMAN
MICHAEL MANZO
JAMES NAGLE
A. SURESH REDDY
EDWARD TIESENGA
ASIF YUSUF
Village Board
Published in pamphlet form by authority of the
President and the Board of Trustees of the Village of Oak Brook
on this the 25'"day of May, 2021
Resolution 2021-PL-IS-
R-1948 Approving the
Purchase of Insurance Plans
Page 2 of 2
RESOLUTION 2021-PL-IS-R-1948
A RESOLUTION APPROVING AND AUTHORIZING
THE PURCHASE OF INSURANCE BENEFITS FOR EMPLOYEES
WHEREAS, the Village provides its employees with health, dental, and life insurance benefits
(collectively, "Insurance Plans'); and
WHEREAS, the Village currently purchases health insurance coverage, third-party administrator
services, and stop loss insurance from BlueCross BlueShield of Illinois (collectively, "BC/BS Plans'; and
WHEREAS, the Village currently purchases dental insurance coverage from Guardian Dental
("Guardian Plan'); and
WHEREAS, the Insurance Plans are up for renewal; and
WHEREAS, instead of putting the purchase of the Insurance Plans out to bid or request for
competitive proposals, the Village Board has once again retained Vista National Insurance Group, Inc. to
market the Insurance Plans to various insurance providers to obtain the most advantageous Insurance
Plans for the Village; and
WHEREAS, because the Village retained Vista National Insurance Group, Inc. to obtain quotes
from various insurance providers, and the Village Board believes that Vista National Insurance Group,
Inc. has negotiated for the purchase of Insurance Plans that are advantageous to the Village, Village staff
has recommended that the Village waive competitive bidding for the purchase of the Insurance Plans;
and
WHEREAS, Village staff has recommended the Village Board renew: (i) the BC/BS Plans so that
they continue through June 30, 2022; and (ii) the Guardian Plan so that it continues through June 30,
2022; (collectively, "Renewals'l; and
WHEREAS, the President and Board of Trustees, being fully advised in the premises, have
determined that it is in the best interests of the Village and its residents to so waive competitive bidding
and to approve the Insurance Plans, all subject to the appropriation of sufficient funds for the Insurance
Plans in the future fiscal year;
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part
of, this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Waiver of Competitive Bidding Requirements. The advertising and bidding
requirements for the purchase of the Insurance Plans are hereby waived in accordance with Section 1-7-
4 of the Village Code.
Section 3: Authorization of Insurance Plan. The purchase of the Insurance Plans is hereby
authorized.
Resolution 2021-PL-IS-R-1948
Approving the Purchase of
Insurance Plans
Page 2 of 2
Section 4: Execution of Required Documentation. The President, Village Manager, and the
Village Clerk shall be, and are hereby, authorized to execute and attest, on behalf of the Village all
documents necessary to complete the purchase of the Insurance Plans pursuant to Section 3 of this
Resolution, which documentation shall be in a final form approved by the Village Attorney.
Section 5: Effective Date. This Resolution shall be in full force and effect from and after its
passage by two-thirds of the Trustees and its approval in the manner provided by law.
APPROVED THIS 25th day of May, 2021
Gopal G. Lalmalani
Village President
PASSED THIS 25th day of May, 2021
Ayes:
Trustees Herman, Manzo, Nagle, Reddy, Tiesenga, Yusuf
Nays: None
Absent: None
ATTEST-
Al NA
Charlotte K. Pruss
Village Clerk
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