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Council reviews proposal for actuarial review of city health plan; $20,000 cap
Summary
Resolution 41 would authorize contracting with Conrad Siegel to conduct an actuarial review of the city's health care program to identify efficiencies and consider bid options; the contract is capped at $20,000 and council moved the resolution to the legislative agenda for a formal vote.
Council members heard a presentation on Resolution 41 of 2025, authorizing a professional services agreement with Conrad Siegel, Inc., to provide an actuarial review of the city's health care program.
John Sapocek, a consulting actuary with Conrad Siegel, said the scope includes review of plan operations, administrative contracting (medical carrier, pharmacy benefit managers, stop-loss carriers), trend analysis and the development of actuarial rate estimates for the next budget cycle. He said the exercise is not a benefits redesign; it is intended to identify opportunities for greater efficiency and to assess whether a full competitive procurement would be cost-effective. The proposed agreement is capped at $20,000; Sapocek said his work may exceed that time but the fee is capped.
Council members sought to understand how the report would assist budgeting and whether vendor consolidation or competitive procurement would be feasible. The actuary said the review will include trend analysis and a rate development estimate to inform upcoming budgets and that prescription drug contracting is likely to be a major cost driver the review will examine. He said consolidation and procurement options will be explored, but some vendor changes can lead to downstream differences in plan operation and require legal review.
Vice President Green said the city has seen repeated midyear increases to medical budget lines and noted the review could help produce more accurate budget estimates. Council moved Resolution 41 to the next legislative session agenda for a formal vote; the motion was recorded at the work session but no final vote was taken.
