Submitted by: City Administrator
Submitting Department: Administration
Agenda Section: Action
Item Title:
title
Health Care, Prescription Drug, and Dental Care Rates for CY25
end
Suggested Action:
recommendation
I move that the Mayor and Council approve the 2025 calendar year health insurance premium rates, as presented at the October 7, 2024, City Council Meeting.
end
Summary Background:
The City received the new State of Maryland calendar year (CY) 2025 Health Care Program guidance on October 1, 2024. The rates for the PPO and EPO Carefirst and United Health Care plans, the Kaiser IHM plan, and the Delta and United Concordia dental plans have increased by approximately 5%. The prescription drug plan has increased by approximately 10%. The City has historically provided a flat rate contribution annually which allows us to minimize the increases paid by employees. Overall, the City pays between 75% to 84% of health insurance costs.
Open Enrollment period begins on October 15, 2024, and runs through November 8, 2024. Upon Council approval, the employees will be given the opportunity to add, drop, or change coverage plans to best meet their individual or family needs. These new rates will be effective January 1, 2025, through December 31, 2025. The City Administrator, Finance Director, and HR Director are evaluating each plan and will provide the Council with a recommendation on the updated City’s flat rate contribution and the employee increases.
Next Steps:
Upon approval, the HR Director will provide City employees with an overview of the 2025 Health Care Plans and rate sheets.
Fiscal Impact:
TBD
City Administrator Comments:
For Council discussion and approval of rates. This is one of the largest increases in costs in the past 10 years. Our goal is to minimize the impact to employees.
Community Engagement:
N/A
Strategic Goals:
Goal 2 - Ensure the Long-Term Economic Viability of the City
Legal Review Required?
N/A