HomeMy WebLinkAboutItem 09 - Post-65 Retiree Health InsuranceMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: OCTOBER 19, 2021
SUBJECT: ANNUAL POLICY RENEWAL FOR POST-65 RETIREE HEALTH
INSURANCE
RECOMMENDATION: City Council to consider approval to renew an annual policy with Aetna
Inc. for post-65 retiree health insurance.
FUNDING SOURCE: Funds are available in the General Fund, Retiree Health Premium
accounts in the annual estimated amount of $300,000.
BACKGROUND: The City of Grapevine retirees age 65 and over (Medicare eligible)
currently have the option of a Medicare Advantage PPO (Part C) and
Medicare Rx Plan (Part D) with Aetna or a Medicare supplement. The
Aetna plan provides services and programs beyond the coverage of
original Medicare. Retiree premiums for this plan are subsidized by the
City. The set percentage of the subsidy is 70% by the City so the retiree
only pays for 30% of plan premium.
Aetna has provided a renewal with a 1 % increase in premium over last
year, therefore, the cost to the City and the retiree's will both have a slight
increase in order to keep the City's subsidy at 70% and the retiree portion
at 30%. This is a one year policy.
Staff recommends approval.