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Finance committee authorizes Humana Medicare Advantage plan for city retirees for 2026
Summary
Aurora approved an agreement with Humana to administer Medicare Advantage coverage for eligible retirees for calendar year 2026; staff described rate pressures and plan changes made to limit a steep renewal.
The Aurora City Finance Committee on Sept. 25 authorized an agreement with Humana to administer a Medicare Advantage plan for Medicare-eligible retirees for Jan. 1–Dec. 31, 2026.
Brian (Dr.) Caputo, director of operations management, explained the city moved retiree Medicare coverage to an externally administered insurance arrangement in 2022. The proposed Humana rate for one individual was presented as $276.67 per month; Caputo said an initial renewal proposal showed an "astronomical" 21.09% increase, driven by medical and prescription claim cost increases (he cited a 9.9% rise in medical claims and a 151.1% increase in prescription claims for 2024 in the memo).
To reduce the renewal, staff adjusted plan design details, including a change in deductible structure, and plan to rebid next year after recent large-scale changes to benefit administration settle. Alderman Franklin asked whether retirees share in premium savings; Caputo said retiree contributions vary by former employee group and are typically frozen at the time the retiree left active employment, but staff will review pass-through options for 2027.
The resolution passed 5-0. Caputo said staff will continue to monitor rates and plan for a rebid in 2026 for implementation thereafter.
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