Recommend approval to renew an annual contract for group Medicare Advantage Plan coverage for retirees and their spouses who are Medicare primary with Humana, Inc.  

Changes in governmental accounting standards require recognizing the cost of post-employment benefits over the working career of an employee.  In order to reduce this liability while maintaining retiree medical benefits, the best solution is a group sponsored fully insured Medicare Advantage Plan.  Based upon 100% enrollment, the estimated annual cost for the approximately 750 covered retirees and spouses equals $1,689,534.00, of which the City will pay on average 48% of the premium, which is a decrease from last year's 52% contribution rate.  Retiree premiums are also decreasing an average of about 9% from last year's premiums.

This is a sole source because our current employee benefits consultant, USI Insurance Services, conducted a market assessment and determined that this is the most cost effective plan.

This contract term will be from January 1, 2019 through December 31, 2019.

Approval