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Board approves plan to move city employee health insurance to Anthem for 2027, citing $2M in projected savings
Summary
After a consultant replay of 12 months of claims, the board voted to switch the city's employee health plan to Anthem starting in 2027, with staff projecting roughly $2.0–$2.1 million in gross savings before some administrative fees.
Consultants presented a claims-repricing analysis to the Board of Public Works and Safety recommending a vendor change for the city’s employee health plan beginning with the 2027 plan year. After review and discussion, the board voted to approve entering an agreement with Anthem to begin coverage in 2027.
Rick, the benefits consultant, summarized 12 months of claims data and the results of a claims “replay,” saying the Anthem pricing produced substantially larger discounts on allowed amounts than the existing plan pricing. As Rick put it, after the repricing and accounting for fixed administrative fees and PPO access fees, the net savings figure was “about $2,094,000” (presenters characterized the gross/net range as roughly $2.0–$2.1 million). City staff noted that some additional fixed costs (higher administrative fees under Anthem) would slightly offset the savings but recommended the change.
The board asked about employee impact and implementation. Human-resources staff (Karen) said the change would be communicated in open-enrollment sessions and that staff expect a multi-month implementation window; the consultant noted roughly 120 days would be needed to finalize changes and prepare enrollment materials. Legal confirmed it had reviewed the agreement and recommended approval.
The board voted to approve moving the city to Anthem for the 2027 plan year. Staff will schedule employee education sessions and complete vendor setup, with the change effective in calendar-year 2027.
