City staff recommend switching short-term, long-term and life insurance vendor to Symetra; changes to take effect Jan. 1

City staff presented the annual employee benefits review at the Oct. 2 workshop and recommended changing the vendor for short-term disability (STD), long-term disability (LTD), and basic life insurance to Symetra beginning Jan. 1.

Andrew Patton walked the board through the bid results. He said the city solicited bids through its broker Willis Towers Watson and found Symetra would reduce costs by about 40% on STD and LTD and 30% on basic life compared with the current vendor; staff said they expect equivalent coverage and improved claims and billing service. Staff also reported a 2.4% renewal increase for the city’s Blue Cross Blue Shield medical line and an approximate 5% increase for stop-loss coverage (the plan that covers claim costs above a specified threshold). A notable item on the renewal materials was a large change in the prescription-rebate line; staff described a 61% increase in rebates due to Blue Cross’s recalculation of prescription modules, which the city expects will be favorable to the plan in the next renewal.

Patton confirmed that ongoing claims already on short-term disability will remain with the current vendor; the change would affect new claims starting Jan. 1. Staff said dental and vision would remain with Blue Cross under locked pricing, and an existing LASIK benefit will continue to run through the medical plan. No vote was recorded at the workshop; the proposed vendor change was presented for board consideration and will be carried to a later meeting for formal action if the board chooses to adopt the changes.

Board members asked clarifying questions about claim continuity and the effective date; staff answered that current STD claims would stay with the incumbent vendor and that the Symetra coverage would begin Jan. 1 for new claims.