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Ottawa insurance committee hears broker data showing rising costs, seeks BCO plan details
Summary
City of Ottawa Insurance Committee reviewed Horton broker data showing rising claims and a 21% increase in group liability, raised concerns about provider acceptance of a proposed Blue Choice Options network, requested detailed projected‑savings documentation, and received legal guidance on spouse Medicare eligibility.
The City of Ottawa Insurance Committee met March 9, 2026, and heard a presentation from Horton insurance representatives outlining rising employee health insurance costs and a proposed Blue Choice Options (BCO) preferred‑provider tier. Committee members approved the meeting minutes, asked Horton for documentation of projected savings from the BCO plan, and adjourned at 3:42 p.m.
Horton broker Jim Relyea told the committee that year‑over‑year cost analyses show escalating claims activity and “that the rising insurance costs are tied to a 21% increase in the City’s group liability” over a short period. Horton representatives presented graphs and monthly cost breakdowns for medical, prescription and dental claims and described the BCO as a narrower preferred‑provider tier intended to generate discounts and reduce overall costs without reducing benefit levels.
Several members pressed Horton on practical effects and timing. Committee member Randy Nelson said some employees who checked with providers and Blue Cross Blue Shield were told the new plan would not be accepted; Relyea responded that the BCO plan had not yet been formally built and that providers and BCBS representatives therefore lacked plan details to confirm coverage. He said the underlying BCO network already exists and that “approximately 96% of providers currently used by City employees are already included in the BCO network.” He added that once the City provides written authorization, a customized plan typically takes about “6–8 weeks” to be built.
Members also raised concerns about employees reaching their out‑of‑pocket maximum more quickly under a narrower network and about how missing benefits would be handled if discovered after launch. Horton said any such issues would be addressed promptly to ensure employees receive entitled benefits. The committee asked Horton to supply documentation showing the projected cost savings that would have resulted had the City implemented the BCO plan, and asked staff to contact a peer municipality about its experience with Horton.
On a separate agenda item, Benefits Coordinator Haley Roalson reported guidance from the Cantlin law firm on Medicare and disability‑spouse eligibility: the City cannot require a disabled spouse to move from the PPO to a Medicare Advantage plan while the employee remains employed, nor can it prevent an eligible spouse from electing Medicare Advantage, because the collective bargaining agreements do not address that specific situation.
Other business: Mayor Robb Hasty reported that the Ottawa YMCA declined to offer the SilverSneakers program; Haley Roalson distributed the monthly plan report for 2023–2025 and summarized a peer organization’s difficult recent experience with Horton’s open enrollment process, which is currently under renegotiation.
Votes at a glance • Approval of minutes (Feb. 9, 2026): Moved by Kim Czyz, seconded by Jeffrey Bangert; recorded as “all ayes.” Outcome: approved. (SEG 011) • Adjournment at 3:42 p.m.: Moved by Bob Anderson, seconded by Ryan Tieman; meeting was adjourned. Outcome: approved (voice). (SEG 033)
What’s next: The committee requested Horton provide the projected‑savings documentation for the proposed BCO design and asked staff to contact a peer municipality for feedback on Horton. The committee’s next listed meeting is May 11, 2026, at 2:00 p.m.
(Reporting based on the City of Ottawa Insurance Committee minutes for March 9, 2026.)
