Ottawa insurance committee sets quarterly meetings, reviews rescinded plan change and retiree concerns

The City of Ottawa Insurance Committee met Feb. 9, 2026, and agreed to hold quarterly meetings while reviewing retiree and active-employee insurance issues, including a rescinded plan change after union grievances and concerns about broker accuracy.

The meeting, called to order at 2:05 p.m., included Mayor Robb Hasty; committee members Kim Czyz and Bud Nilles; Commissioners Eichelkraut and Ganiere; and staff and representatives from employee and retiree groups. Haley Roalson, benefits coordinator, distributed a packet of 2026 plan-cost projections, enrollment data and prescription-claims summaries.

Committee members discussed an attempted transition to BlueCross Options (BCO), a cost-saving measure intended to avoid an anticipated 40% premium increase. After informational meetings late in the 2025 open-enrollment period, "several unions filed grievances" over previously undisclosed issues, and the City Council rescinded the proposed change, retaining the 2025 plan for 2026, the committee said.

Retiree issues drew separate attention. Committee member Kim Czyz recommended that the Mayor and Council press the Ottawa YMCA to accept the Silver Sneakers program, noting that regional YMCAs do accept it while the Ottawa facility currently does not. Mayor Robb Hasty said Parks & Recreation had previously raised the issue with the YMCA but that the YMCA's new chief executive said the facility could not absorb the program costs because of existing scholarship commitments. Retiree representatives reported a smooth transition from BCBS to Humana Medicare coverage after the council selected Humana as the most comparable and cost-effective alternative when BCBS renewal pricing proved unsustainable.

Members raised trust and process concerns about brokerage information. Bud Nilles and other members questioned the accuracy of the current brokerage's guidance; Haley Roalson and the Mayor suggested the City might keep the firm but change representatives. The committee asked Roalson to research alternative brokerages as well as new representatives within the current firm and to provide comparable numbers at the next meeting.

Other items included frustration over mid-year prescription-formulary changes by the pharmacy benefit manager. Roalson said coverage levels remained the same but administrative hurdles increased; she will investigate whether the City, as a self-insured plan, has any leverage over formulary decisions. The group also discussed spousal eligibility for Medicare Advantage when a spouse qualifies by disability rather than age; Roalson said the insurer initially resisted, tying eligibility to the employee's tenure, and that corporate counsel is involved.

A committee member asked why insurance changes were considered before collective-bargaining agreements were renegotiated. The Mayor and Council replied that annual plan reviews are necessary given rising healthcare costs and market shifts, and that some plan administrators are unwilling to accept union-mandated deductible structures. A commissioner noted the Mayor's emphasis that employee premiums should reflect actual costs rather than premium equivalents; members cited collective-bargaining language intended to prevent employee overpayment. Roalson explained that differing premium percentages for police and fire are set through bargaining and that, under Illinois law as discussed at the meeting, retirees may not be charged more than active employees.

Haley Roalson distributed a detailed data packet showing projected annual costs for the City and employees, enrollment by tier and dependent type, prescription-claim breakdowns for 2024–2025, and BCBS financial summaries from 2023–2025. Members requested monthly real-time expenditure reports going forward to improve transparency and avoid last-minute decisions like those experienced in 2025's open enrollment.

In new business, members recommended exploring other brokers and brokerages for future insurance administration; Roalson will return with comparative information at the next scheduled meeting. The committee recorded its 2026 meeting dates (March 9, May 11 and Sept. 14 at 2:00 p.m.) and adjourned at 3:30 p.m. after a motion by Kim Czyz and second by Bud Nilles.

The committee asked members to submit Open Meetings Act training certificates by the next meeting on March 9, 2026. Meeting minutes and materials were emailed Feb. 11 to the Mayor, commissioners, union and retiree representatives and others; the minutes were submitted by Haley Roalson, benefits coordinator.