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City staff explore Medicare pool; Humana currently lowest bidder for retiree plan
Summary
City staff briefed the Personnel Committee on exploring Gallagher Benefit Services and a municipal Medicare pool to administer retiree Medicare Advantage plans; Humana provided the lowest current bid and staff estimate monthly retiree premiums could fall from about $274 to around $220.
City Manager Klunder informed the Personnel Committee on July 29 that staff have been exploring options to improve retiree Medicare Advantage administration and costs, including contracting with Gallagher Benefit Services and joining a municipal Medicare pool.
Klunder said the city's previous administrator, Schaaf Agency, sold its business and service levels declined. Gallagher, which administers the Western Michigan Health Insurance Pool, suggested pooling municipal retiree Medicare business; a satellite office has met with five municipal entities and estimated potential savings of 10–40% for those participants. Klunder said a larger meeting of the pool participants is scheduled and that a decision to join would need to be made by Oct. 1 for enrollment purposes.
Plockmeyer said Humana provided the lowest bid among options discussed; under current arrangements the city is charged about $274 per month for retiree coverage with a retiree cost share of about 27%. Under the new proposal staff estimated a rate around $220 per month, which Plockmeyer described as a "significant savings to both the city/ZBPW & the employee without a reduction in benefit level." Klunder said Humana or its third‑party administrative partner would provide retiree onboarding meetings and enrollment assistance.
No committee vote was taken; Klunder indicated staff expect to return with a formal recommendation within the next two months.
