R-2021 - 05/24/2022 - AGREEMENTS - Resolutions Supporting Documents ITEM 8.13.1
BOARD OF TRUSTEES MEETING
V i 1.1 nc e o' SAMUEL E. DEAN BOARD ROOM
OAK BR , K BUTLER GOVERNMENT CENTER
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
May 24, 2022
SUBJECT: Health, Third Party Administrator and Stop Loss Insurance, Dental,
Life/AD&D Insurance, Vision Insurance & Telemedicine
Agreements for July 1, 2022 Renewal
FROM: Kathy Vonachen, Human Resource Director tv-
BUDGET SOURCE/BUDGET IMPACT: Program 126-Employee Benefits
RECOMMENDED MOTION: I move to approve Resolution 2022-PL-IS-R-2021, A
Resolution Approving and Authorizing the Purchase of Insurance Benefits for
Employees, and direct staff to execute Agreements after receiving final attorney
review with BlueCross BlueShield (BC/BS) of Illinois for Group Health Insurance
Coverage, Third Party Administrator (TPA) Service, and Stop Loss Insurance as
well as Aetna for Dental, Blue Cross Blue Shield/Dearborn National for Life,
EyeMed for Vision, and 180OMD for telemedicine in the Plan Year starting July 1,
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 December 31). 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 151 employees.
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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: The Village has decided to move their anniversary date from July 1 st to January 1 st
moving forward. As a result, BCBS issued a renewal for a 6-month period (7/1/22 through
12/31/22). BCBS's proposal for the PPO has an overall increase of+6.03%or approximately
$145,955 higher than our current plan year in total liability,although our premium equivalent
contribution rates are increasing by+2.5%. When reviewing the BCBS proposal, there are a
few key areas to highlight (1) the estimated fixed costs were increased by +20.5% or
approximately $83,068 and (2) this year BCBS is requesting an increase of +3.12% or
approximately$62,887 in claim liability.
For the HMO there will be an increase of+8.5%for the 2022 policy year.
Dental: Guardian proposed a +20% premium increase in rates. The carriers that declined to
quote or provided an uncompetitive quote were Ameritas, BCBSIL, Delta Dental, Lincoln,
Mutual of Omaha, Principal, SunLife, Standard, UHC and Unum. Aetna and MetLife have
offered competitive quotes. The Village has elected to move to Aetna, with premium rates -
0.68%below current Guardian rates with a 3-year rate guarantee.
Life/AD&D: Blue Cross Blue Shield(formerly known as Dearborn National)has presented a
rate increase of+11.54, which represents an annual premium increase of $2,141. All other
carriers declined to quote or were uncompetitive.
Vision: EyeMed issued a renewal at the same rate for an additional 4-year period,until July 1, 2026.
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 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 the Resolution 2022-PL-IS-R-2021 as presented Authorizing the Purchase
of Insurance Benefits for Employees and direct staff to execute Agreements after receiving
final attorney.
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