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Waukegan approves employee benefits renewal with plan design changes to limit rate increase
Summary
City approves renewal of employee benefits with Blue Cross Blue Shield (IMED) and MetLife; consultant said modest plan design changes would reduce the renewal increase from 8.8% to about 5.3%, including raising HMO OOP and PPO deductibles.
The City of Waukegan's Finance & Purchasing Committee voted Nov. 17 to approve renewal of employee benefits agreements with IMED (Blue Cross Blue Shield of Illinois) and an insurance benefits agreement with MetLife for retiree coverage.
Kurt Schmiedke, an employee benefits consultant with Global Benefits, told the committee that most coverages (dental, vision, life and voluntary benefits) would remain unchanged, but staff recommended limited plan design changes to control premium growth. Schmiedke said raising the HMO maximum out‑of‑pocket from $1,000 to $1,500 and increasing the PPO deductible from $500 to $1,000 would reduce the renewal increase from 8.8% to about 5.3% and yield a difference of approximately $400,000 compared with accepting the full renewal increase.
Councilors pressed on how those changes would affect employees. Schmiedke said members currently pay 10% of premiums and that the changes would modestly shift out‑of‑pocket exposure but preserve the planned maximum out‑of‑pocket limit. An alderman noted the design changes would raise some employees’ per‑paycheck costs while reducing the city’s net cost compared with the higher renewal.
Following discussion, the committee approved the renewal by roll call. Staff said funding is budgeted in the FY26 general fund accounts cited in committee materials.
