Department of Administrative Services
Reference: An Ordinance Approving the 2021 Benefits
To: Mayor Gregory Mills and Members of City Council
Through: Jane Bais DiSessa, City Manager
Prepared By: Karen Borkowski Surine, Administrative Services Director
Date Prepared: 10/20/2020
PURPOSE
Consider approving the 2021 Employee Benefits package.
STRATEGIC FOCUS AREA
Financially Responsible
BACKGROUND
The City of Brighton has enjoyed a long working relationship with HUB International, the City’s benefit brokers. Nathan Wolfe, HUB Vice President Consultant, and Jakob Regalado, HUB Vice President/Director of Analytics, have assisted us over the years in achieving our goal of providing our employees a comprehensive, high quality benefits package. Both individuals will be attending the Council meeting to answer any questions the City Council may have regarding our employee benefits program.
In 2019, the City made the change to UMR and RX Benefits for medical and prescription cost control. This has proven to be cost effective for the City as well as for the consumer. City employees have reported that their out of pocket costs for their maintenance prescriptions has decreased. In some cases, the savings has been considerable. Therefore, staff is recommending continuing with UMR/United Healthcare for our medical benefits.
Delta Dental provides our dental benefits. This year we are able to add dental implant benefits to the package, which will cover 50% of the cost after the deductible has been met and up to the annual benefit maximum of $1,500. The cost for dental benefits is projected to increase 5% in 2021. However, due to the reserve fund position, staff is comfortable that we can keep the rate the same for employees.
VSP is our vision care provider. We are under a rate guarantee through 2022, so there is no increase in this benefit. Staff has had no issues with this provider, so we are recommending staying with this provider.
In 2020, City Council approved the Zero Card program. This voluntary program allows individuals having a surgical procedure to go into an approved group of high quality medical providers for all of their needs for this procedure, medical imaging or tests at no cost to them.
For example, an employee needing a knee replacement would get a referral from their primary care provider and go to the Zero Card network surgeon, anesthesiologist, medical imaging provider, rehabilitation provider, etc. to be in this program. It is projected this saved our members $25,000 this year to date while not costing Brighton anything extra. It is expected that we will have more usage of this benefit next year as demand for medical services returns to normal. Employees would still have the choice to stick with their UMR/United Healthcare network with applicable deductibles or go through the Zero Card network at no cost to them.
The Telehealth program has been very successful in saving employees time and money and keeps the City’s medical costs down as well. City staff is recommending continuing this benefit.
City staff is recommending using the medical reserve fund balance to provide additional benefits to City employees without risk in covering unexpected medical costs. It is anticipated that our Stop Loss Insurance will increase next year. We will receive the bids for Stop Loss later in the year.
LTD/STD and Life Insurance programs through Lincoln Financial are under rate guarantee through the end of 2021. Therefore, there is no increase in cost to the City for this benefit.
Anthem EAP rate is also under a rate guarantee. We have seen more usage in this benefit, which we believe is related to the stress the pandemic has created.
STAFF RECOMMENDATION
City staff recommends approval of the 2021 benefits package and that employee contribution levels remain as is.
OPTIONS FOR COUNCIL CONSIDERATION
- Approve Ordinance as presented.
- Give staff further direction.
ATTACHMENTS
Ø Ordinance
Ø 2021 Benefits Guide
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