The City's health insurance plan is comprised of a high deductible Blue Cross Blue Shield of Michigan plan that the City then self-funds an HRA "seamless wrap" to ensure costs are more manageable out of pocket for employees. Ahead of the July 1, 2022 renewal, our benefits advisor, 44North, has advised us to change the out of pocket maximum for our high deductible BCBSM plan to $8,150 annually for the employee and $16,300 for their family in order to limit the increased out of pocket costs to employees seen in our renewal.  

Our current dental insurance cost was quoted with an increase of 3.32% for our July 1 renewal. To minimize the increase, 44North has proposed a self-funded BCBSM dental plan. The funding arrangement for this plan will not change the benefit level for active employees or retirees, but will save the City 3.09%, essentially equalizing our cost to this year rather than seeing an increase for next year. 

The City budgets for and pays the State of Michigan hard caps set by law for medical insurance for active employees along with the full cost of vision and dental coverage. Employees are responsible for paying the cost above the hard cap rate as the premium they see deducted per paycheck.  

With these changes to our BCBSM plans for active employee groups and retirees, we need to execute the attached plan change agreements.