DEPARTMENT: Human Resources
DEPARTMENT HEAD: Lori Steward
COUNCIL DISTRICTS IMPACTED: City-Wide
SUBJECT:
Retiree Health Benefits Contract
SUMMARY:
This ordinance authorizes the City Manager or her designee to execute a contract with Aetna Life Insurance Company, to provide or arrange health services for Medicare-eligible retirees and eligible dependents in an estimated annual cost of $2.2 million. The term of this contract is for three (3) years, beginning January 1, 2016, and ending December 31, 2018, with the option to renew for up to two (2), one (1) year periods, subject to and contingent upon funding by City Council.
BACKGROUND INFORMATION:
The City of San Antonio is committed to providing a choice of comprehensive, quality health benefits to our Medicare-eligible retirees and dependents. The City currently covers approximately 1,300 Medicare eligible retirees in our retiree benefit program. Medicare is a Health Insurance Program administered by the Centers for Medicare and Medicaid Services (CMS) for people age 65 or older, disabled retirees under age 65, and retirees of all ages with End-Stage Renal Disease, which is permanent kidney failure treated with dialysis or a transplant.
The advantage and purpose for offering a managed care Medicare supplement product to City retirees and their dependents is to help offset health care cost not covered by Medicare. Retirees electing to participate in a Medicare Advantage plan will pay a small co-payment for inpatient and outpatient services and coverage for pharmacy. Currently the Medicare insurance does not cover pharmacy.
Healthcare coverage for all Medicare eligible retirees is provided through a fully insured Medicare Advantage Program. Cost sharing for healthcare coverage for retirees employed with the City before October 1, 2007, will be approximately 67%/33% contribution split, with the City contributing 67% of the overall cost for healthcare coverage. Retirees...
Click here for full text