Resolution 18-087 Approving Contract with with Premera Blue Cross, VSP, and Prudential

CITY OF HOMER
HOMER, ALASKA

                                                                                                  City Manager

RESOLUTION 18-087

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, APPROVING A NEW ONE-YEAR CONTRACT WITH PREMERA BLUE CROSS, VSP, AND PRUDENTIAL.

WHEREAS, The City of Homer received proposals from private health insurance companies which were evaluated by the consultant and City Administration, and agreed that the best proposal for health insurance was the one submitted by Premera Blue Cross; and

WHEREAS, Premera Blue Cross submitted a proposal for Dental which would provide the City with a better overall renewal rate and coverage for those benefits; and

WHEREAS, VSP submitted a proposal for Vision which would provide the City with a better rate for those benefits; and

WHEREAS, Combining the Premera Blue Cross and VSP proposals would only raise the 2019 total health care costs by 5.2% over 2018; and

WHEREAS, The Employee Committee had a conference call and discussion with Brandon Nyberg of USI Insurance Services, reviewed the benefit coverage and cost projections for the 2019 plan, and reviewed proposals submitted, and concurs with this recommendation; and

WHEREAS, In order to meet enrollment deadlines, and have new enrollees’ healthcare effective on January 1, 2019, it is necessary to approve the new contracts and employee premiums as soon as possible.

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves a new one-year contract based upon the proposals with a term beginning on January 1, 2019, and authorizes the City Manager to execute the appropriate documents.

PASSED AND ADOPTED by the Homer City Council this 22nd day of October, 2018.

                                                                                                                CITY OF HOMER

                                                                                                                ________________________                               

                                                                                                                KEN CASTNER, MAYOR

ATTEST:

___________________________

MELISSA JACOBSEN, MMC, CITY CLERK

Fiscal Note:  $1,781,086 annual cost of employee health care.