Item Coversheet

City of Marquette, MI
300 West Baraga Avenue
Marquette, MI 49855


Agenda Date: 5/30/2023

New Business
City Health Insurance Renewal - Roll Call Vote

BACKGROUND: 

The City’s health insurance package for full-time employees and eligible retirees is renewed annually for a plan year beginning July 1. Renewal rates are obtained from our third party administrator and presented to a health committee comprised of one member from each of our five unions as well as management and Human Resources staff representation. This year rates were obtained from 44North as well as from the West Michigan Health Insurance Pool through Gallagher Benefit Services, Inc. The West Michigan Health Insurance Pool is a group of school districts, community colleges and municipalities working together to provide the most cost-effective health insurance for the families that participate in group health coverage through the employers in the Pool.  The health committee unanimously agreed with the option to pursue moving to the Pool.

 

The City budgets for and pays the State of Michigan hard caps set by law annually for medical and pharmacy coverage for active employees along with the full cost of vision and dental insurances. Employees are responsible for paying the cost above the hard cap rate as the premium they see deducted per paycheck. The proposed coverage options for the City of Marquette include various Blue Cross Blue Shield of Michigan plan options that will save City employees significantly in premiums deducted from their paychecks. The cost to the City will remain neutral as the City pays the hard cap rates and there will be no change to vision and dental coverage or rates as Gallagher assumes the role of the City’s agent of record for these plans.  


FISCAL EFFECT: 

The cost budgeted by the City will remain the same, and includes the hard cap rates set by Michigan law, as well as the cost of dental and vision coverage.


RECOMMENDATION: 

Reaffirm the City of Marquette’s commitment to paying the hard caps set by Michigan law for eligible active employees on the City’s health and prescription drug coverage; approve the Resolution authorizing public entity membership in the West Michigan Health Insurance Pool for a minimum three-year period; and approve the Business Associate Agreement with Gallagher Benefit Services, Inc. to act as the City’s agent for administration of health insurance and other related insurance services.


ALTERNATIVES: 
As determined by the Commission.

ATTACHMENTS:
Description
Resolution
Business Associate Agreement