CITY COUNCIL AGENDA ITEM
Memo Date: September 16, 2024
Agenda Date: September 24, 2024
Prepared By: Tammy Gemmati, Administrative Services Director
Through: Stockton Whitten, City Manager
Requested Action:
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Approve a multi-year renewal of United Healthcare Medicare Advantage Plan for eligible retirees 65 and over from January 1, 2025 to December 31, 2025 and payments to eligible retirees for Medicare Part B reimbursement. FY2025 Expenditures are Pending the Adoption of the FY2025 Budget.
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BACKGROUND:
On November 24, 2009, the Cocoa City Council created Resolution 2009-150, amending Resolution 2008-133 which requires Medicare eligible retirees to elect the City's selected Medicare Insurance Plan for health insurance coverage. The resolution also requires Medicare eligible retirees to elect both Medicare Parts A & B. Although, Medicare Part A is at no cost to the retiree, the City reimburses eligible retirees on a quarterly basis for the cost of Medicare Part B. The City also pays the Medicare Advantage United Healthcare (UHC) premium for eligible retirees.
Due to hospital limitations in the local area, on June 23, 2015 Council approved a multi-year contract from September 1, 2015 to December 31, 2015, to replace the previous provider of Aetna for Medicare Advantage Plans with United Healthcare (UHC). Since that time the City has had renewed annually with UHC covering the 2016 - 2024 plan years. Medicare plans are regulated by the Centers for Medicare and Medicaid Services (CMS).
The Medicare Advantage Plan with UHC for the 2024 calendar plan year is currently $386.12 per covered member. The City's initial renewal had a 30% increase, which would have increased the monthly rate to $501.90. Due to CMS initiative and the Inflation Reduction Act, there are several significant changes being implemented for plan year 2025, specifically around Part D benefits. The following are key changes that will be impacting all Medicare Prescription ...
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