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City staff and insurance committee recommend switching city coverage to Blue Cross Blue Shield with 18-month rate guarantee
Summary
City Clerk Peggy S. Bateman said the city's insurance committee recommends switching the city's group health plan to Blue Cross Blue Shield effective July 1 to secure an 18-month rate guarantee after Health Alliance announced it will stop writing large groups.
City Clerk Peggy S. Bateman told the Lincoln City Council on June 2 that the city insurance committee recommends switching the city’s group health insurance from Health Alliance to Blue Cross Blue Shield effective July 1, citing an 18-month rate guarantee and limited options as Health Alliance will stop writing large groups.
Bateman said the insurance broker and committee evaluated options from Blue Cross, UnitedHealthcare and Aetna. UnitedHealthcare quoted higher rates and added prescription limitations; Aetna could not write the city because it has too many retirees under age 65 on the plan. Blue Cross offered an 18-month rate guarantee if the city switched July 1, and the insurance committee — which includes union representatives, the mayor and staff — recommended that step. "The committee went back to each union... and they felt that we should switch July 1 to Blue Cross Blue Shield," Bateman said.
Bateman said timing is tight because plan changes must be implemented for July 1 and that the committee requested authorization to proceed with implementation steps, with formal council voting to follow. She said the city will need to contact retirees (including those 65 or older as applicable) and active employees to allow plan selection and enrollment. Council members indicated support for moving quickly; staff said they would place the change on the next Committee of the Whole to complete the formal vote.
Ending: Council members signaled support for the committee recommendation and directed staff to proceed with implementation steps to meet the July 1 transition timeline; a formal vote will be placed on the Committee of the Whole agenda.
