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Home My WebLink About#5233 BCBS Group Medical Renewal RESOLUTION NO. 5233 A RESOLUTION APPROVING AN INSURANCE RENEWAL BETWEEN THE CITY OF CANTON AND BLUE CROSS BLUE SHIELD OF ILLINOIS FOR THE POLICY TERM PERIOD MAY 1, 2020 TO APRIL 30,2021 WHEREAS,the City of Canton, Illinois (the"City")provides health insurance to not only its various Union employees, but also its non-Union employees and elected officials; WHEREAS, the City and the Insurance Committee investigated and determined what options would be available for health insurance purposes to continue said coverage for City employees; WHEREAS, the City, upon discussion and recommendation of the Insurance Committee, has determined that it is necessary and in the best interest to renew the health insurance policy and coverage through Blue Cross Blue Shield of Illinois for the policy term period May 1, 2020 through April 30, 2021. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS AS FOLLOWS: 1. The renewal attached hereto and incorporated herein as "Exhibit A" is hereby APPROVED. 2. The Mayor and the City Clerk are hereby authorized and directed to execute and deliver said renewal documents on behalf of the City. 3. This Resolution shall be in full force and effective immediately upon its passage by the City Council of the City of Canton and approval by the Mayor thereof. PASSED AND APPROVED THIS 7th day of April, 2020. AYES: Aldermen Ryan Mayhew, Quin Mayhew, John Lovell, Craig West, Angela Hale, Jeff Fritz, Angela Lingenfelter, Justin Nelson NAYS: None ABSENT: None APPRR ED: IisiP'/ Kent McDo ell ayor /(:) ("----, By:4b._-‘a I i ,__1! ATTEST: Diana Pavley-Rock, City Clerk EXHIBIT A aiN 9 BlueCross BlueShield of Illinois Renewal Exhibits for CITY OF CANTON Group number(s):P89388,P95069 Renewal Effective:05/01/2020 Rate Effective:05/01/2020 Current Health Monthly Rates Medicare Medicare Estimated Empl.+ Empl.+ Primary Primary Total Monthly Taxes& Current Health Plan(sl Emp1. Spouse Child(rent Family 5Algig Single+1 Health Cost* Fees BPP72322 $797.66 $1,588.10 $1,453.82 $2,244.25 $458.07 $916.14 $161,404.52 $1,129.83 Contracts 28 26 16 33 1 0 104 MPS91605 $689.13 $1,372.03 $1,256.01 $1,938.91 $395.75 $791.50 $19,226.35 $134.58 Contracts 12 1 3 3 0 0 19 Total Monthly Health Cost* $180,630.87 $1,264.41 Total Health Contracts 123 *Total Monthly Health Cost includes the effects of Health Insurer Fees and Reinsurance Fees(including but not limited to successor or alternate programs),if any,plus any federal and state taxes applicable to the fees for(BCBSIL)products/services. Renewal Health Monthly Rates Medicare Medicare Estimated Empl.+ Empl.+ Primary Primary Total Monthly Taxes& Renewal Health Plan(st Erna Spouse Child(renl Family in Single+1 Health Cost* Fees BPP72322 $827.01 $1,722.08 $1,663.88 $2,558.96 $472.50 $945.00 $179,470.62 $4,044.74 Contracts 28 26 16 33 1 0 104 MPS91605 $737.26 $1,535.20 $1,483.31 $2,281.26 $421.22 $842.44 $21,676.03 $488.59 Contracts 12 1 3 3 0 0 19 Total Monthly Health Cost* $201,146.65 $4,533.33 Total Health Contracts 123 *Total Monthly Health Cost includes the effects of Health Insurer Fees and Reinsurance Fees(including but not limited to successor or alternate programs),if any,plus any federal and state taxes applicable to the fees for(BCBSIL)products/services. Health Renewal Premium Change Components a.Account/Benefit Program Adjustment(incl.Trend): 5.28% b.Demographic Adjustment: 1.53% c.Change in Risk: 4.18% Total*: 11.36% *The total health renewal premium change percentage is calculated by multiplying each of the components in the above table.This change percentage is based upon total monthly premium.Each tier's rate change may vary from the total change percentage. Change Component Definitions a) Account/Benefit Program Adjustment(incl.Trend)indudes group and benefit plan specific pricing changes due to factors such as medical cost trends,pool adjustments,plan, industry and geographical pricing,etc. b) Demographic Adjustment is the pricing change for age,gender,group size and dependent composition differences. c) Change in Risk is the pricing change resulting from BCBSIL's analysis of medical conditions and experience. Health and Non-Health Renewal Notes: • The health and/or dental rates shown are for twelve(12)months from the renewal effective date and have been priced in accordance with Health Care Service Corporation's(HCSC)current regulatory status and the existing benefit program.If your rate effective date is different from your renewal effective date,your rates are until your next renewal effective date. • Contracts shown represent enrollment as of four months prior to the renewal effective date. • Assuming BCBSIL will be the only carrier providing coverage to the employer group's employees.BCBSIL reserves the right to change premium rates if BCBSIL is not the exclusive carrier.Groups must promptly notify BCBSIL if BCBSIL is not the exclusive carrier. - BCBSIL reserves the right to non-renew or discontinue coverage unless the 25%minimum employer contribution is met and at least 70%of eligible employees are enrolled for coverage. • Employer will promptly notify BCBSIL of any change in participation and Employer contribution. • BlueCross and BlueShield of Illinois reserves the right to change premium rates upon prior written notice when a substantial change occurs in the number or composition of subscribers covered.A substantial change will be deemed to have occurred when the number of subscribers covered changes by 10%or more over a thirty(30)day period or 25%or more over a ninety(90)day period. • State and federal law require that insurers determine whether an employer is subject to the Small Employer or Large Employer regulations.In determining group size an insurer may rely upon the information provided by employers.This renewal is based upon the condition that you are not a Small Employer as defined under the Affordable Care Act(ACA).An employer that has 50 or less employees(Small Employer)has different requirements under state and federal law than a large employer.Any group experiencing a reclassification as a Small(or Large)group on renewal is required to be issued contractual coverage appropriate for that size group. • Rates do not include any future mandated benefit changes. • BCBSIL reserves the right to change premiums should future legislation or administration rulings result in obligating HCSC to pay new taxes or other fees,or to modify a benefit or mandate a new benefit. • Annual open enrollment. • This renewal assumes the contract will be issued in Illinois. • Upon inquiry from employer groups,BCBSIL will provide information to the employer group regarding commissions and other compensation paid to the employer's agent by BCBSIL in connection with the employer's policy or contract with BCBSIL. • If Medicare rates are shown,those are only applicable for employees and dependents that have Medicare as their primary coverage.The actual billed premium rates where split Medicare contracts exist will differ from the rates appearing on this renewal exhibit and enclosed proposal depending on an individuals'primary/secondary coverages,active-at-work/retired status and the number of employees within the group. • For Government Plans and Church Plans,HCSC's administration is based on the Benefit Plan not being subject to ERISA.For all other plans, HCSC's administration is based on the Benefit Plan being subject to ERISA.In the event you have determined that the above administration is not applicable to the Plan,please advise HCSC of your position in writing as soon as possible. .... 9 BlueCross BlueShield of Illinois Renewal Exhibits for CITY OF CANTON Group number(s):P89388,P95069 Renewal Effective:05/01/2020 Rate Effective:05/01/2020 Current Health Monthly Rates Medicare Medicare Estimated Empl.+ Empl.+ Primary Primary Total Monthly Taxes& Current Health Plan(sl Emol, Soouse Childjrenl Familyin le Single+1 Health Cost:* Fees BPP72322 $797.66 $1,588.10 $1,453.82 $2,244.25 $458.07 $916.14 $161,404.52 $1,129.83 Contracts 28 26 16 33 1 0 104 MPS91605 $689.13 $1,372.03 $1,256.01 $1,938.91 $395.75 $791.50 $19,226.35 $134.58 Contracts 12 1 3 3 0 0 19 Total Monthly Health Cost* $180,630.87 $1,264.41 Total Health Contracts 123 *Total Monthly Health Cost includes the effects of Health Insurer Fees and Reinsurance Fees(including but not limited to successor or alternate programs),if any,plus any federal and state taxes applicable to the fees for(BCBSIL)products/services. i Renewal Health Monthly Rates Medicare Medicare Estimated Empl.+ Empl.+ Primary Primary Total Monthly Taxes& Renewal Health Plan(slEmol• Spouse Child(ren) Family Single Single+1 Health Cost* Fees BPP72322 $827.01 $1,722.08 $1,663.88 $2,558.96 $472.50 $945.00 $179,470.62 $4,044.74 Contracts 28 26 16 33 1 0 104 MPS91605 $737.26 $1,535.20 $1,483.31 $2,281.26 $421.22 $842.44 $21,676.03 $488.59 Contracts 12 1 3 3 0 0 19 Total Monthly Health Cost* $201,146.65 $4,533.33 Total Health Contracts 123 *Total Monthly Health Cost includes the effects of Health Insurer Fees and Reinsurance Fees(including but not limited to successor or alternate programs),if any,plus any federal and state taxes applicable to the fees for(BCBSIL)products/services. Health Renewal Premium Change Components a.Account/Benefit Program Adjustment(incl.Trend): I 5.28% b.Demographic Adjustment: 1.53% c.Change in Risk: 4.18% Total*: 11.36% *The total health renewal premium change percentage is calculated by multiplying each of the components in the above table.This change percentage is based upon total monthly premium.Each tier's rate change may vary from the total change percentage. Change Component Definitions a) Account/Benefit Program Adjustment(incl.Trend)includes group and benefit plan specific pricing changes due to factors such as medical cost trends,pool adjustments,plan, industry and geographical pricing,etc. b) Demographic Adjustment is the pricing change for age,gender,group size and dependent composition differences. C) Change in Risk is the pricing change resulting from BCBSIL's analysis of medical conditions and experience. Health and Non-Health Renewal Notes: • The health and/or dental rates shown are for twelve(12)months from the renewal effective date and have been priced in accordance with Health Care Service Corporation's(HCSC)current regulatory status and the existing benefit program.If your rate effective date is different from your renewal effective date,your rates are until your next renewal effective date. • Contracts shown represent enrollment as of four months prior to the renewal effective date. • Assuming BCBSIL will be the only carrier providing coverage to the employer group's employees.BCBSIL reserves the right to change premium rates if BCBSIL is not the exclusive carrier.Groups must promptly notify BCBSIL if BCBSIL is not the exclusive carrier. • BCBSIL reserves the right to non-renew or discontinue coverage unless the 25%minimum employer contribution is met and at least 70%of eligible employees are enrolled for coverage. • Employer will promptly notify BCBSIL of any change in participation and Employer contribution. • BlueCross and BlueShield of Illinois reserves the right to change premium rates upon prior written notice when a substantial change occurs in the number or composition of subscribers covered.A substantial change will be deemed to have occurred when the number of subscribers covered changes by 10%or more over a thirty(30)day period or 25%or more over a ninety(90)day period. • State and federal law require that insurers determine whether an employer is subject to the Small Employer or Large Employer regulations.In determining group size an insurer may rely upon the information provided by employers.This renewal is based upon the condition that you are not a Small Employer as defined under the Affordable Care Act(ACA).An employer that has 50 or less employees(Small Employer)has different requirements under state and federal law than a large employer.Any group experiencing a reclassification as a Small(or Large)group on renewal is required to be issued contractual coverage appropriate for that size group. • Rates do not include any future mandated benefit changes. • BCBSIL reserves the right to change premiums should future legislation or administration rulings result in obligating HCSC to pay new taxes or other fees,or to modify a benefit or mandate a new benefit. • Annual open enrollment. • This renewal assumes the contract will be issued in Illinois. • Upon inquiry from employer groups,BCBSIL will provide information to the employer group regarding commissions and other compensation paid to the employer's agent by BCBSIL in connection with the employer's policy or contract with BCBSIL. • If Medicare rates are shown,those are only applicable for employees and dependents that have Medicare as their primary coverage.The actual billed premium rates where split Medicare contracts exist will differ from the rates appearing on this renewal exhibit and enclosed proposal depending on an individuals'primary/secondary coverages,active-at-work/retired status and the number of employees within the group. • For Govemment Plans and Church Plans,HCSC's administration is based on the Benefit Plan not being subject to ERISA.For all other plans, HCSC's administration is based on the Benefit Plan being subject to ERISA.In the event you have determined that the above administration is not applicable to the Plan,please advise HCSC of your position in writing as soon as possible. Renewal - FY21 Employer's Share 80%-Employee's Share 20% Aeti- Li`l PPO Emp E+S E+C Family Monthly Premium 827.01 1,722.08 1,663.88 2,558.96 Annual Premium 9,924.12 20,664.96 19,966.56 30,707.52 Employer's Share 80%-Employee's Share 20% 661.61 1,377.66 1,331.10 2,047.17 ER Share Annual 7,939.30 16,531.97 15,973.25 24,566.02 Employer's Share 80%-Employee's Share 20% 165.40 344.42 332.78 511.79 EE Share Annual 1,984.82 4,132.99 3,993.31 6,141.50 EE Share per Pay Period 8270 172.21 16639 255.90 20,664.96 Employer's Share 80%-Employee's Share 20% High Deductible/Health Savings Acct Emp E+S E+C Family Monthly Premium 737.26 1,535.20 1,483.31 2,281.26 Annual Premium 8,847.12 18,422.40 17,799.72 27,375.12 Employer's Share 80%-Employee's Share 20% 661.61 1,377.66 1,331.10 2,047.17 Difference between HDHP and 80%PPO 75.65 157.54 152.21 234.09 Employee's Monthly Portion 75.65 157.54 152.21 234.09 ER Share Monthly 661.61 1,377.66 1,331.10 2,047.17 ER Share Annual 7,939.30 16,531.97 15,973.25 24,566.02 EE Share Annual 907.82 1,890.43 1,826.47 2,809.10 EE Share per Pay 37.83 78.77 76.10 117.05 Health Savings Contribution - - - - Renewal - FY21 Employer's Share 80%-Employee's Share 20% PPO Dental Emp E+S E+C Family Monthly Premium 21.40 43.46 56.81 84.30 Annual Premium 256.80 521.52 681.72 1,011.60 Employer's Share 80%-Employee's Share 20% 17.12 34.77 45.45 67.44 ER Share Annual 205.44 417.22 54538 809.28 Employer's Share 80%-Employee's Share 20% 4.28 8.69 11.36 16.86 EE Share Annual 51.36 104.30 136.34 202.32 EE Share per Pay Period 2.14 4.35 5.68 8.43 Renewal - FY21 ---T-Employer's Share 77.5%-Employees Share 22.5% ' PPO Emp E+S E+C Family Monthly Premium 827.01 1,722.08 1,663.88 2,558.96 Annual Premium 9,924.12 20,664.96 19,966.56 30,707.52 Employer's Share 77.5%-Employee's Share 22.5% 640.93 1,334.61 1,289.51 1,983.19 ER Share Annual 7,69119 16,015.34 15,474.08 23,798.33 Employer's Share 775%-Employee's Share 225% 186.08 387.47 374.37 575.77 EE Share Annual 2,232.93 4,649.62 4,492.48 6,909.19 EE Share per Pay Period 93.04 193.73 1.87.19 287.88 20,664.96 Employer's Share 77.5%-Employee's Share 22.5% High Deductible/Health Savings Acct Emp E+S E+C Family Monthly Premium 737.26 1,535.20 1,483.31 2,281.26 Annual Premium 8,847.12 18,422.40 17,799.72 27,375.12 Employer's Share 775%-Employee's Share 225% 640.93 1,334.61 1,289.51 1,983.19 Difference between HDHP and 80%PPO 96.33 20059 193.80 298.07 Employee's Monthly Portion 96.33 20059 193.80 298.07 ER Share Monthly 640.93 1,334.61 1,289.51 1,983.19 ER Share Annual 7,69119 16,015.34 15,474.08 23,798.33 EE Share Annual 1,155.93 2,407.06 2,325.64 3,576.79 EE Share per Pay 48.16 100.29 96.90 149.03 Health Savings Contribution - - - - Renewal - FY21 Employer's Share 77.5%-Employee's Share 22.5% PPO Emp E+S E+C Family Monthly Premium 21.40 43.46 56.81 84.30 Annual Premium 256.80 521.52 681.72 1,011.60 Employer's Share 77.5%-Employee's Share 225% 16.59 33.68 44.03 65.33 ER Share Annual 199.02 404.18 52833 783.99 Employer's Share 775%-Employee's Share 225% 4.82 9.78 12.78 18.97 EE Share Annual 57.78 117.34 153.39 227.61 EE Share per Pay Period 2.41 4.89 6.39 9.48 Renewal- FY21 Q Employer's Share 76%-Employee's Share 24% i IC -5 C m C, PPO Emp 1E+S E+C Family Monthly Premium 827.01 1,722.08 1,663.88 2,558.96 Annual Premium 9,924.12 20,664.96 19,966.56 30,707.52 Employer's Share 76%-Employee's Share 24% 62853 1,308.78 1,26455 1,944.81 ER Share Annual 7,542.33 15,705.37 15,17439 23,337.72 Employer's Share 76%-Employee's Share 24% 198.48 413.30 399.33 614.15 EE Share Annual 2,381.79 4,959.59 4,791.97 7,369.80 EE Share per Pay Period 99.24 206.65 199.67 307.08 20,664.96 Employer's Share 76%- Employee's Share 24% High Deductible/Health Savings Acct Emp E+S E+C Family Monthly Premium 737.26 1,535.20 1,483.31 2,281.26 Annual Premium 8,847.12 18,422.40 17,799.72 27,375.12 Employer's Share 76%-Employee's Share 24% 628.53 1,308.78 1,26455 1,944.81 Difference between HDHP and 80%PPO 108.73 226.42 218.76 336.45 Employee's Monthly Portion 108.73 226.42 218.76 336.45 ER Share Monthly 628.53 1,308.78 1,264.55 1,944.81 ER Share Annual 7,542.33 15,705.37 15,174.59 23,337.72 EE Share Annual 1,304.79 2,717.03 2,625.13 4,037.40 EE Share per Pay 54.37 11321 109.38 168.23 Health Savings Contribution - - - - Renewal - FY21 Employer's Share 76%-Employee's Share 24% PPO Emp E+S E+C Family Monthly Premium 21.40 43.46 56.81 84.30 Annual Premium 256.80 521.52 681.72 1,011.60 Employer's Share 76%-Employee's Share 24% 16.26 33.03 43.18 64.07 ER Share Annual 195.17 396.36 518.11 768.82 Employer's Share 76%-Employee's Share 24% 5.14 10.43 13.63 20.23 EE Share Annual 61.63 125.16 163.61 242.78 EE Share per Pay Period 2.57 5.22 6.82 10.12