Item 4BContract Renewal with Aetna to provide employee medical benefits for plan year October 1, 2012 to September 30, 2013.
Item 4B
Item 4B
Approve a contract renewal with Aetna to provide employee medical benefits for Plan Year October 1, 2012 to September 30, 2013.
Background
Current carrier: Aetna
10/01/96 – 09/30/02
12/01/03 – present
Bid insurance in 2002, 2003, 2006, 2010
3 plans: HDHP, HMO and POS (Point of Service)
Aetna Renewal History
Consistently below trend
Plan changes in FY11 & FY12
No plan changes in FY07, FY08, FY09 or FY10
Medical Claims Ratio
Total Premium Paid: $2,450,130
Total Claims Paid: $2,107,548
Claims Ratio: 86%
Aetna Proposed Renewal
3.5% Rate Increase
No plan changes
Estimated increase: $52,800
Advantages with Aetna
Financial Considerations
Estimated cost of medical insurance premiums:
Funding for medical insurance will be included in the proposed FY 2013 budget.
Staff Recommendation
Approve a contract renewal with Aetna to provide employee medical benefits for Plan Year October 1, 2012 to September 30, 2013.
Questions: Stacey Black 817-748-8063