Item 4HContract Renewal with Aetna to provide employee medical benefits for plan year October 1, 2011 to September 30, 2012.
Item 4H
Item 4H
Approve a contract with Aetna to provide employee medical benefits for Plan Year October 1, 2011 to September 30, 2012.
Background
Current carrier: Aetna
10/01/96 – 09/30/02
12/01/03 – present
Bid insurance in 2002, 2003, 2006, 2010
2 plans: HMO and POS (Point of Service)
Aetna Renewal History
Consistently below trend
Minor plan changes in FY06 and FY11
No plan changes in FY07, FY08, FY09 or FY10
Medical Claims Ratio
Total Premium Paid: $2,294,792
Total Claims Paid: $2,313,527
Claims Ratio: 101%
Aetna Proposed Renewal
No plan changes: 17.3%
With plan changes: 10%
Estimated increase: $142,000
Plan changes include deductible, copayments, and coinsurance increases.
High Deductible Health Plan Option
Third “buy-down” insurance option for employees
Medical plan provided by Aetna
HSA Account administered by 3rd Party
Advantages with Aetna
Financial Considerations
Estimated cost of medical insurance premiums:
Funding for medical insurance will be included in the proposed FY2012 budget.
Staff Recommendation
Approve a contract renewal with Aetna to provide employee medical benefits for Plan Year October 1, 2011 to September 30, 2012 to include plan changes to the HMO and POS plans and to
offer a third High Deductible Health Plan (HDHP) option.
Questions: Stacey Black 817-748-8063