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Council selects Humana Medicare Advantage plan for city retirees after premium review
Summary
After staff reported a 26.29% premium increase from the incumbent insurer, the council approved a Humana Medicare Advantage option that staff said would produce a smaller overall increase and lower out-of-pocket maximums for retirees.
City staff recommended switching the city's post-65 retiree health coverage to a Humana Medicare Advantage plan after the incumbent submitted a proposed renewal with a 26.29% premium increase.
The staff presenter said the consultant and the 172 committee reviewed options and that Humana offered the lowest overall cost among the proposals considered, with a premium increase "a little over 20%" compared with the incumbent's larger increase. Staff said the plan includes lower co-pays and an out-of-pocket maximum reduced by about $1,000. The presenter also outlined how the city would cover a budgeted delta from its claims-paid account and estimated that a retiree with 20 years of service would see a monthly increase of about $42 (roughly $504 annually, as presented), while a retiree with 30 or more years would see a much smaller monthly change. Council voted to accept the Humana option.
