DEPARTMENT: Human Resources
DEPARTMENT HEAD: Lori Steward
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT: Fully Insured Health Plans for Medicare Eligible Retirees
SUMMARY:
This ordinance authorizes the City Manager or his 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 $875,846. The term of this contract is for three (3) years beginning January 1, 2021 and ending December 31, 2023, with an option to extend the contract for up to two (2) one (1) year renewals, subject to and contingent upon funding from the 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 their dependents. The City currently covers approximately 1,450 Medicare-eligible retirees and their eligible dependents. Medicare is a Health Insurance Program administered by the Centers for Medicare and Medicaid Services (CMS) for people age 65 or older, people with disabilities under age 65, and people of all ages with end-stage renal disease, which is permanent kidney failure treated with dialysis or a transplant.
The advantage of and purpose for offering a managed care Medicare supplement product to City retirees and their dependents is to help offset health care costs for services not covered by Medicare. Retirees electing to participate in the City's Medicare Advantage plan will have the option of two (2) Medicare Advantage plans, a standard PPO in which members pay a co-payment for inpatient and outpatient services and an enhanced buy-up PPO in which members do not have out of pocket costs. Additionally, there will also be a pharmacy-only plan for retirees who choose not to enroll in a Medicare advantage plan. For those who become eligible for participation in the Retiree Health Benefits Plan, the City will pay a subsidy calc...
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