Submitted by: Ron Brooks
Submitting Department: Finance
Agenda Section: Action
Item Title:
title
Health Care, Prescription Drug, and Dental Care Rates for CY24
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Suggested Action:
recommendation
I move that the Mayor and Council approve the 2024 calendar year health insurance premium rates which have increased an average of 5% in all plans.
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Summary Background:
The City received the new State of Maryland calendar year (CY) 2024 Health Care Program guidance on October 10, 2023. The rates increased by approximately 5% in the PPO Carefirst and United Health Care plans, and the Kaiser EPO plan. 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 16, 2023, and runs through November 5, 2023. 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, 2024, through December 31, 2024. 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 2024 Health Care Plans and rate sheets.
Fiscal Impact:
We anticipate an increase in the City’s monthly flat rate contributions in all employee health programs by 2.5 to 3.5%.
City Administrator Comments:
For Council discussion and approval of rates.
Community Engagement:
N/A
Strategic Goals:
Goal 2 - Ensure the Long-Term Economic Viability of the City
Legal Review Required?
N/A