Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits topic
No spam. Unsubscribe anytime.
Frostburg staff recommend switching benefit vendors, propose retiree service requirement
Summary
City administration recommended moving health benefits to Cigna with two plan options (employer contributions 75% and 85%), shifting vision/dental and life policies to new carriers, and asked council to consider a service‑length requirement (proposed 10 years) for retirees to remain on city health insurance to limit long‑term liability.
City human-resources and finance staff briefed the council on recommended changes to employee benefits broker and insurance carriers and raised a policy question about retiree eligibility for city-sponsored health insurance.
Staff described a broker recommendation to move the city’s primary health coverage to Cigna and to offer two plan choices: a lower‑deductible plan with an employer contribution equating to 75% of the premium and a high‑deductible alternative with an employer contribution target of 85% of premium (designed to reduce employee premium share). Staff said the proposed move would produce overall cost savings compared with the city’s current self‑insured arrangement and would require a bridge contract to handle previously incurred claims.
Staff also proposed moving dental and vision coverage to Humana and life/AD&D coverage to Mutual/other carriers (recommendation from broker CBIS). Open enrollment was scheduled to begin May 27 for a two‑week period.
Separately, staff said Frostburg currently allows retirees age 60 and over to remain on city insurance without any minimum service requirement; staff proposed the council consider a service-length requirement (staff suggested 7–10 years; council members favored 10 years) to limit long-term liability. Staff said they would prepare a resolution establishing the service requirement for council consideration the following week.
