Aurora plans move to self‑funded UnitedHealthcare model; finance to create internal self‑insurance fund

Michelle Hart, Manager of Benefits and Wellness, told the committee that the city will transition its UnitedHealthcare plan from fully insured to a self‑funded model beginning in 2027. She said the move is primarily motivated by the opportunity for savings and to meet a 5% budget target after UnitedHealthcare’s fully insured renewal quoted an 11.1% increase. "Moving to a self funded plan would mean that the city is assuming that risk," Hart said, describing reserves and stop‑loss insurance the city plans to maintain to manage unexpected claims.

Tara Litsue, City Controller, followed with a finance recommendation to create an internal service self‑insurance fund to record premiums and claims activity and to pay benefits and administrative costs. She cited Article 11‑12 of the city charter as the authority requiring special funds be created by ordinance and asked whether the committee wished to approve creating the ordinance and moving it to study session. Committee members indicated support to move the ordinance to the October 12 study session and, if passed there, to the Oct. 26 City Council meeting where each district- and city‑level hearing would be held as scheduled. Hart also briefed open enrollment (Oct. 24–Nov. 15, passive enrollment) and said employer HSA contributions would increase $100 per tier for 2027.