Item 4DITEM 4D Approve renewal of contract with Aetna to provide employee medical and dental benefits
Background
City bid insurance products in May 2006
(3) providers bid on medical insurance
Aetna awarded bid
7.3% rate increase in 2007 with modest increase in co-pays and deductibles.
Renewal
Medical:
No changes in co-pays, deductibles
9.9% rate increase
Claims paid for current year
Predicted Trend : 9.9% to 11.4%*
medical cost inflation, utilization, cost shifting of entitlement programs
Estimated cost increase:
$103,500 annually (City portion)
* Source: Pricewaterhouse Coopers Health Research Institute, AON Consulting and The Segal Company
Renewal
Dental:
No changes in co-pays, deductibles
9.8% rate increase
Estimated cost increase:
$7,700 annually (City portion)
Recommendation
Budget
Proposed rates are budgeted in FY 2007-08 Proposed Budget.
Staff recommends approval of renewal of contract with Aetna
QUESTIONS? Contact Kevin Hugman