Number
150302
Version
SUBSTITUTE 2
Reference
Sponsor
THE CHAIR
Title
Substitute resolution relating to the process for 2016 health insurance rates for active employees and retired members.
Analysis
This resolution authorizes the Department of Employee Relations to use the rates for 2016 as projected by Willis of Wisconsin based on the City’s 2016 benefit design structure. Willis will evaluate the United Health Care (UHC) Choice Plan and the UHC Choice Plus Plan for active employees and retired members. Willis will also evaluate a new High Deductible Health Plan to be offered to active employees in compliance with the recently-adopted State of Wisconsin 2015-2017 Budget.
The resolution also authorizes DER to communicate those rates to City employees and retirees during the open enrollment period between October 19, 2015, and November 6, 2015.
Body
Whereas, The City has contracted with Willis of Wisconsin to provide actuarial services to the City including projections for City health plans; and
Whereas, The City wants to ensure that health care rate projections for 2016 are as accurate as possible; and
Whereas, Willis of Wisconsin and its actuary will continue to gather cost and utilization data from United Health Care, OptumRx and ExpressScripts through August 2015; and
Whereas, The actuary will use the data from United Health Care, OptumRx and ExpressScripts from January 1, 2014 through August 31, 2015, to provide rate projections to the City by October 1, 2015 based on the City’s 2016 benefit design structure for both City active employees and retirees; and
Whereas, The Department of Employee Relations wishes to communicate health care benefit rates for 2016 to employees and retirees during the open enrollment period between October 19, 2015, and November 6, 2015; and
Whereas, The recently-enacted State of Wisconsin 2015-2017 Budget requires the City of Milwaukee to offer a High Deductible Health Plan (HDHP) for police officers, fire fighters or emergency medical technicians in 2016; and
Whereas, The City of Milwaukee has elected to offer a HDHP to all active employees in 2016; and
Whereas, The City of Milwaukee will provide a HDHP with a design structure that is cost-neutral to the City; and
Whereas, The City of Milwaukee has requested that Willis of Wisconsin calculate 2016 rate projections for four tiers of premiums for active employees in all plans offered; and
Whereas, The City of Milwaukee has requested that Willis of Wisconsin calculate 2016 rate projections for the premiums for retirees over 65 and retirees under 65 for the UHC Choice Plan and the UHC Choice Plus Plan; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Department of Employee Relations is authorized to use the rates projected by Willis of Wisconsin based on the City’s 2016 benefit design structure for all plans offered for active employees and a UHC Choice Plan and a UHC Choice Plus Plan for retirees; and, be it
Further Resolved, That the Department of Employee Relations will communicate those rates to City active employees and retirees during the open enrollment period between October 19, 2015, and November 6, 2015.
Requestor
Department of Employee Relations
Drafter
LRB 159343-2
John Ledvina
7/15/2015