Agenda Date: 03/17/2026
Subject:
Title
Resolution 09-2026: Approving an agreement with Anthem for administrative services for the city's Self-Insured Medical Insurance Program
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Tracy Hooker, Human Resources Director |
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Laurie Matta, Finance Director |
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Presentations: |
N/A |
PURPOSE:
Staff is requesting approval to enter into an agreement with Rocky Mountain Hospital and Medical Service, Inc. d.b.a. Anthem Blue Cross and Blue Shield ("Anthem") for Administrative Services and Stop Loss Policy for the city’s Self-Insured Health Benefit Plan
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
The City of Littleton allows employees to participate in several benefit plans if they meet the minimum service hour requirements. One of these benefit plans that this city offers is medical insurance coverage through Anthem. Anthem provides oversight and administration of the health insurance plan. The city is required to enter into an annual contract with Anthem to provide these services.
The city’s health insurance plan is a self-funded medical plan as opposed to a fully insured plan. This means the city does not pay a premium per employee to Anthem, but rather pays a premium to the city’s health insurance fund. Anthem administers this program by reviewing and approving all allowable claims and in turn, the city pays for these claims from the health insurance fund throughout the plan year. A $200,000 individual stop loss policy is provided to the city to limit the amount required to be paid by the city for high dollar claims along with an aggregate stop loss which limits financial liability for total claims expenses as a whole. This deductible has been increased from $150,000 in years past as a cost savings effort after careful claims analysis. Anthem charges a per employee per month fee for providing these medical benefits and stop loss policies to limit financial liability for both individual members and the city.
BACKGROUND:
This is an annual contract that is entered into with Anthem, the city’s current provider, to provide medical benefits for eligible employees of the city.
Employee insurance coverage is bound effective January 1 based on approved rates and terms following the RFP award. The formal contract is executed afterward once all exhibits, enrollment data, and regulatory language are finalized. Executing the final contract during the first quarter of the plan year is standard practice in the insurance industry and ensures uninterrupted coverage for employees.
Prior Actions or Discussions
N/A
FISCAL IMPACTS:
The city has a separate health insurance fund which is reviewed throughout the year and is included in the annual budget process. The estimated cost for providing medical benefits along with stop loss limits is estimated to be approximately $1,720,128 for 2026, which was included in the 2026 budget approved by City Council. This will be funded from the city’s health insurance fund through premiums paid from both the city and employees.
STAFF RECOMMENDATION:
Staff recommends approval of the resolution approving the agreement with Anthem for 2026.
ALTERNATIVES:
N/A
PROPOSED MOTION:
Proposed Motion
I move to approve Resolution 09-2026 approving an agreement with Anthem for administrative services for the city's Self-Insured Medical Insurance Program.