At tonight’s meeting, the Council will consider awarding the contracts for health, dental, workers’ compensation, and property and liability insurances for FY2021, for a total budgeted cost of $ 1,608,415.
The health insurance plan is self-insured through a cooperative arrangement with the Local Government Insurance Trust (LGIT) and benefits are administered through Cigna. For the first time, the insurance premiums will decrease in the upcoming year. The decrease to estimated premiums from FY2020 to FY2021 will be 4.7% ($1,298,962, from $1,363,509 in FY2020), due to a reduction in medical claims over the past two rating periods.
The City offers eligible employees the choice between two dental plans. Exact premium increases will not be available until May. Our broker advises us to increase the total budget by 6%. Based on current enrollment, the budgeted expense will be $66,775, an approximate increase of $3,780.
Workers Compensation is insured by Chesapeake Employers Insurance Company, in compliance with federal law on employment discrimination. The increased cost of coverage for FY2021 is expected to be minimal, just 1.7% more than last year’s estimate. The budgeted cost will be $343,976, which is an increase of $5,809. The small increase is due to a significant reduction in the premium for police officers and a 23% discount based on our relationship and good safety record.
The City’s various liability policies are all insured by the Local Government Insurance Trust (LGIT) or its partners and include general liability, auto, public officials’ liability, police liability, property damage, boiler and machinery, pollution legal liability, crime bond, cyber coverage, Metro underpass coverage, and flood and earth movement coverage. Next year’s expense will increase 5% over actual cost (which was less than budgeted) for an expected total cost of $158,494.