HUMAN RESOURCES OFFICE
Reference: 2018 BENEFITS
To: Mayor Richard N. McLean and Members of City Council
Through: Philip Rodriguez, City Manager
COUNCIL MEETING
Prepared By: Karen Borkowski Surine, Administrative Services Director
Date Prepared: 9/7/2017
PURPOSE: To establish fringe benefits for regular full-time and regular part-time employees and City Council for fiscal year 2018.
BACKGROUND
The City of Brighton contracts with HUB International Southwest, Inc. for the purpose of helping us manage our self-funded benefits program, which is entering the fifth year.
HUB representatives Lynn Baker and Jakob Regaldo meet monthly with Finance and HR staff members to review claims performance, funding options and data projections. The goal of this review is to mitigate costs of the Patient Protection and Affordable Health Care Act and provide employees with coverage comparable to that which they have become accustomed to as well as come up with a financially viable benefits plan and training strategies.
The cost to the City to provide health benefits for 2018 is $4,605,600. The fund has projected reserves of $676,394 to cover expenses that may be incurred above the expected claims. Medical inflation increases benefits costs annually at approximately 6-7%. The insurance provider continues to be United Healthcare.
In order to assure that the City's health plan remains fiscally strong to address projected claims and to promote wise consumption of health care, it is recommended that individual full-time and part-time benefitted employees and spouses selecting coverage through the City be required to continue to each contribute $75.00 per month toward their premium for medical benefits for 2018. Employees and spouses on the medical plan who opt to participate in confidential biometric screening in the first quarter of 2018 and meet with a PVMC medical representative to review the results of the screening or provide verification that they are working...
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