HomeMy WebLinkAboutRes.3433.10-18-2021 BILL NO. 21-153 RESOLUTION NO. 433
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE A CONTRACT WITH ANTHEM FOR EMPLOYEE
HEALTH INSURANCE SERVICES, IN THE CITY OF
CAPE GIRARDEAU, MISSOURI
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE
GIRARDEAU, MISSOURI, AS FOLLOWS:
ARTICLE 1 . The City Manager, for and on behalf of the City
of Cape Girardeau, Missouri, is hereby authorized to execute a
Contract with Anthem for 2022 employee health insurance
services, in the City of Cape Girardeau. Said Contract shall
contain the terms set out in the proposal from Anthem Blue
Cross . A copy of the proposal information is attached hereto
and made a part hereof.
PASSED AND ADOPTED THIS al -
DAY OF I9Iuiff , 2021 .
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Bob Fox, Mayor
ATTEST:
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CBIZ
CBIZ Benefits&
Insurance Services
Kansas City
October 8,2021
Ms. Gina Snyder
Director of Human Resources and Risk Management
City of Cape Girardeau, Missouri
401 Independence Street
P.O. Box 617
Cape Girardeau, MO 63702
Re:Medical Plan Renewal Effective January 1,2022
Dear Gina:
The health insurance plan for the employees of the City of Cape Girardeau is due to renew effective
January 1,2022.The following information is related to that renewal.
Plan History
The City's health plan has been administered by Anthem for several years. The following is a history of
the last several renewals:
• Effective with the January 1, 2018 renewal, combined plan maximum expenses increased by less
than 1 of 1%.
• Effective with the January 1, 2019 renewal, combined plan maximum expenses decreased by
1.5%.
• Effective with the January 1, 2020 renewal, claims for the year increased by 27%. As a result of
the renewal,total costs increased by 10.5%. While the City increased funding,there were no plan
design changes.
• Effective with the January 1, 2021 plan renewal, CBIZ conducted a Request for Proposal (RFP).
While there was interest shown by several vendors, none of the proposals provided significant
savings over the renewal from Anthem, and ALL included significant plan changes, and provider
exclusions. The final renewal increase negotiated with Anthem was 5.4%.
Current Financial Position
The good news this year is that claims have decreased from prior years. For the rating period of 7/1/20 to
6/30/21, paid claims were $3,339,555, a decrease of 12.5%vs.the same timeframe from last year. For the past
12 months,there were$365,545 over your stop loss point of$150,000,while last year's number was $504,342.
For the rating period, you had 30 claims over $25,000, with 17 of those over $50,000 and 5 over
$100,000(your largest claim was$338,690).
Paid claims (after removing $130,274 over your stop loss point of$150,000)for 1/1/21-8/31/21 were
$2,049,814,or 84%of expected amounts,and 67%of maximum.
Your total plan membership has remained the same from last year,at 670 members.
Negotiated Renewal Offer
After renewal negotiations,we were able to secure the following actions:
1) Based on the renewal calculation, Anthem has proposed a decrease to the renewal aggregate
factors of 5.8%,a savings in the City's maximum of$265,000.
2) Anthem had originally requested an increase of 14.7%for Specific Stop Loss premium. CBIZ was
able to negotiate this increase to 9%,a fixed cost savings of over$32,000.
3) There will be no change to the Administrative cost,or Aggregate Stop Loss premium.
4) After the slight increase to the stop loss premium and the decrease in the maximum aggregate
levels,the City's plan will have an overall reduction in obligation of 4%.
Overall Cost Impact
While the maximum overall obligation on the plan will reduce from last year,our recommendation would be to
leave all funding/rates at current levels. Should there be any true savings develop due to these reductions,the
City will retain these savings due to the nature of the self-funded plan.
Conclusion
Should you need any further information, please let us know.
Thank you for your continued confidence and support.Sincerely,
..0 aiaC2.7
David J.Johnson, CEBS Senior Benefits Consultant
City of Cape Girardeau 2022 Health Insurance Rates—ACTIVE EMPLOYEES
Effective January 1,2022
Monthly Premium Rate Costs
PPO Rates
Employee Only Employee&Spouse Employee&Children Employee&Family
Paid by City $462.44 $346.76 $745.34
($695.60)
PPO Rates—Narrow Network(New Option in 201 5)
Employee Only Employee&Spouse Employee&Children Employee&Family
Paid by City* $397.48 $289.88 $670.48
($660.90)
HSA Rates+
Employee Only Employee&Spouse Employee&Children Employee&Family
Paid by City $419.70 $314.80 $677.12
($633.18)
HSA Rates—Narrow Network+(New Option in 2015)
Employee Only Employee&Spouse Employee&Children Employee&Family
Paid by City** $361.94 $264.12 $610.46
($602.34)
Dental Rates
Employee Only Employee&Spouse Employee&Child(ren) Employee& Family
Paid by City $19.50 $16.72 $35.68
($31.40)
*PPO Narrow Network"Employee Only"will receive an additional$35 per month gross pay on their paycheck.
**HAS Narrow Network"Employee Only"will receive an additional$31 per month gross pay on their paycheck.
+An additional$50 per month is contributed to employee's Health Savings Account.
City of Cape Girardeau 2022 Health Insurance Rates—COBRA
Effective January 1,2022
Monthly Premium Rate Costs
PPO COBRA Rates
Employee Only Employee& Spouse Employee&Children Employee& Family
$709.82 $1,181.20 $1,063.21 $1,469.76
PPO COBRA Rates-Narrow Network(New Option in 2015)
Employee Only Employee&Spouse Employee&Children Employee& Family
$674.12 $1,079.55 $969.80 $1,358.06
HSA COBRA Rates
Employee Only Employee&Spouse Employee& Children Employee&Family
$645.84 $1,073.94 $967.94 $1,336.51
HSA COBRA Rates-Narrow Network(New Option in 2015)
Employee Only Employee&Spouse Employee&Children Employee& Family
$614.39 $983.57 $883.79 $1,237.06
Dental COBRA Rates
Employee Only Employee&Spouse Employee&Child(ren) Employee& Family
$32.03 $51.92 $49.08 $68.42
*The responsible party pays all premium costs. All monthly costs are based on applicable premium rate plus 2%
administrative fees.