title
Authorization to ratify 2025 health insurance cost and the purchase of coverages for employee health insurance benefits for 2026 and 2027.
presenter
Presenter: Mary Howard, Chief Administrative & Resident Services Officer
end
Recommendation
The Operating Chairman of the Chicago Housing Authority ("CHA") recommends that the CHA Board of Commissioners ("Board") approves the allocation of funding for CHA's employee health insurance benefits: (1) a 17.4% increase of $2,015,600 over the approved 2025 benefits amount of $11,822,805 for a new Option Year 2 total of $13,838,405; (2) a 16.7% increase of $2,040,167, over the approved 2026 benefits amount of $12,239,395, for a new Option Year 3 total of $14,279,562; and (3) an increase of $1,148,635 over the approved 2027 benefits amount of $12,851,365, for a new Option Year 4, final option year, total of $14,000,000.
Summary
YEAR
APPROVED AMOUNT
RECOMMENDED AMOUNT
2023 (Base Term)
$10,572,850.00
2024 (Option Year 1)
$11,101,493.00
2025 (Option Year 2)
$11,822,805.00
$13,838,405.00
2026 (Option Year 3)
$12,239,395.00
$14,279,562.00
2027 (Option year 4)
$12,851,365.00
$14,000,000.00
Background
Option Year 2: The 17.4% increase for 2025 in the amount of $2,015,600 is due to the unanticipated spike in health benefits and expanded personnel that were not in place when the 2025 budget was set in 2024.
Option Year 3: The 16.7% increase for 2026 in the amount of $2,040,167 reflects CHA's current headcount, turnover, the rising cost of medical coverage, and benefit usage. The impact of rising cost can be seen in the increased medical premium of $12,686,095, which amount is offset by employee contributions of $849,677 (6.7%), resulting in the net actual cost to CHA of $11,836,418.
Coverage
Recommended Insurer
2026 Recommendations
Medical
Blue-Cross Blue Shield
$12,686,095
Dental
Blue-Cross Blue Shield
$591,218
Vision
Blue-Cross Blue Shield
$57,990
Retiree & Separations: Medical, Dental
Blue-Cross Blue Shie...
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