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Board hears 5.81% renewal for health benefits after negotiation with insurer
Summary
Committee reported Aetna proposed a larger increase but Marsh & McLennan negotiated the renewal down to a 5.81% increase; Budget & Finance expressed comfort with the renewal.
The Budget & Finance Committee reported to the governing board on Jan. 23 that the association’s employee health benefit renewal with Aetna will increase by 5.81% for the upcoming year after negotiations by Marsh & McLennan.
Why it matters: the committee and HR sought to limit increases amid industry‑wide cost pressures in health care and pharmaceuticals. Director Novello summarized that Aetna’s initial renewal proposals were substantially higher — cited figures included an early 15% proposal and an intermediate 8% — and that Marsh & McLennan worked with the association’s HR director to negotiate concessions (notably reductions in optional wellness and communications funds) that reduced the final increase to 5.81%.
During the presentation, committee members said they reviewed detailed underwriting and renewal materials (the presentation packet) and were “very comfortable” recommending the outcome to the board. Directors asked clarifying questions about what benefits or extras were scaled back to obtain the reduction, and Novello said the final trimming removed two potential add‑ons: a wellness package and a communications fund.
The board did not take a separate formal vote on the renewal during this agenda item; the committee’s recommendation and staff work will drive implementation with the association’s HR and finance teams.
Ending: Directors thanked Marsh & McLennan and staff; the committee said the renewal materials are in the meeting packet (page 12 referenced) for members seeking more detail.
