Officials have recommended renewing the city's contract with Cigna, which would increase its rates by 5 percent. This would raise the city's annual health insurance cost from
The cost of the increase would be split evenly between the city and its 1,286 employees and 84 retirees who are covered in the plan.
The council's finance committee on Wednesday recommended approval of the one-year renewal, which would take effect
This would be the second consecutive rate increase from Cigna, following a 4.9-percent bump that took effect in the current contract.
The new contract would also raise Cigna's dental coverage rates by 9 percent, to
Cigna has been the city's insurer for several years, and no other carriers have put forth competitive bids, according to the city.
The city's consultant, Mark III Employee Benefits in
Other cities of similar size are self-insured, including
Under a self-insured model, the city would operate its own health plan rather than pay a premium to an insurance carrier.
This could save the city money by avoiding taxes that insurance companies add to their premiums. But if employees file a lot of claims, it could expose the city to higher costs.
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