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Council weighs HMO and triple‑option for employee medical plan after renewal negotiation
Summary
Consultants reported Florida Blue reduced an initial 12.9% renewal to a 7% increase, saving about $153,000; council asked staff to prepare a triple‑option package (HMO base plus PPO buy‑ups) so employees can keep providers while reducing employer cost.
Consultants with the Gehring Group told the Village of Tequesta council the medical plan renewal negotiations reduced a projected 12.9% increase to a 7% renewal with no plan design changes, representing roughly $153,000 in savings versus the initial renewal projection.
Christian Bergstrom of the Gehring Group explained alternatives including a Blue Care Network HMO that narrows some specialty access but keeps all hospitals and outpatient facilities in network and lowers employee out‑of‑pocket costs. He noted an HMO base option paired with the existing PPOs as buy‑ups (or a high deductible HSA option) would allow employees to keep providers at their own cost while delivering employer savings. "If the village is okay with renewing as is at a 7% that is an extremely valuable coverage option for your employees," he said, while also recommending Alternative 4 (HMO) as a savings pathway that minimizes new out‑of‑pocket burdens.
Council members asked practical questions about HSA mechanics, what the village contribution would be, and the cost for employees to buy up to a PPO. Staff and consultants explained the village contributes toward the HSA depending on coverage level, that only eight employees currently participate in the HSA, and provided a rough buy‑up example: if the HMO were the base, an employee keeping the higher‑cost PPO might pay roughly $213 per month in the example pricing provided.
After discussion, council asked staff to develop a triple‑option package (HMO as the base plan, both existing PPOs available as buy‑ups and an HSA/high‑deductible option) with precise pricing for council approval at an upcoming meeting.
