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Department of Administrative Services
Reference: Benefits 2020
To: Mayor Kenneth J. Kreutzer and Members of City Council
Through: Marv Falconburg, Acting City Manager
Prepared By: Karen Borkowski Surine, Administrative Services Director
Date Prepared: 10/8/2019
PURPOSE
To establish employee benefits for 2020.
STRATEGIC FOCUS AREA
Financially Responsible
BACKGROUND
The City of Brighton contracts with HUB International, our benefits brokers, to assist us in achieving our goal of providing our employees a comprehensive, high quality benefits package. In 2019, the City successfully changed to UMR and RX Benefits. This proved to be cost effective for the City and employees and staff recommends continuing with UMR/United Healthcare for our medical benefits and RX Benefits for prescription services.
The cost to the City to provide benefits for 2020 is $5,488,582. The fund currently has reserves of $1,800 to cover expenses that may be incurred above the expected claims. The current reserve gives sufficient security for 2020 and will allow us to utilize some of those funds to enhance the benefits package. Our partnership with UMR, which is United Health Care's wholly owned Third Party Administrator, has allowed us to manage costs. United Healthcare providers and system will remain the same.
Employees will have a choice of two United Healthcare options: In-Network PPO only or a PPO allowing for higher In-Network PPO and Out-of-Network options.
The City utilizes Delta Dental for dental benefits and VSP for vision benefits. There have been no significant issues with these programs and staff recommends continuing with these providers. The City is self-funded for dental benefits and retains Delta Dental as the Third Party Administrator. The entire cost for both vision and dental insurance for each employee. The cost for employees electing dental coverage for their eligible family members is $23.10 per month. The cost for employees electing to h...
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