Aurora consolidates 2025 health plans under Blue Cross Blue Shield, council told expected $700,000+ in minimum savings

Aurora’s Finance Committee on Aug. 29 approved a multi‑part package that moves the city’s health plan administration to Blue Cross Blue Shield (BCBS) for 2025 and adopted related rate and contract changes.

Alicia Lewis, chief human resources officer, told the committee that BCBS won the bid for administrative services across the city’s HMO, PPO and high‑deductible plans. Staff and consultant Mike Baker explained the financials: BCBS offered guaranteed Rx and plan rebates and first‑year credits that materially lowered net cost. Lewis said the move yields approximately $700,000 in minimum savings the city can use to enhance employee benefits, and Mike Baker gave more detail on rebates projected near $1.7 million for certain plan components.

Committee members asked about vision administration, retiree options and multi‑year guarantees. Lewis said EyeMed will continue as the vision network and that BCBS committed certain credits if the city renews in subsequent years, but the city is keeping a one‑year contract in 2025 to ensure the relationship performs as expected. The committee also approved COBRA monthly rates, retiree contribution schedules for pre‑Medicare employees and a two‑year Humana Medicare Advantage contract for Medicare‑eligible retirees. The council approved a three‑year renewal with Assured Partners (benefit consultant) that includes a 15‑month MAP assistance program to help employees during open enrollment; Assured Partners will waive the first three months’ fee.

Committee members stressed customer‑service considerations given BCBS’s national size; staff said the city will monitor service, preserve flexibility to reprocure, and the contract includes credits and caps on administration escalators.

All related motions (administrative services, rate-setting, COBRA and retiree rates, Humana Medicare Advantage and consultant renewal) passed 5–0.

What’s next: Staff will execute the administrative services agreement with BCBS, finalize the 2025 rate tables, provide employees open‑enrollment materials and implement the MAP assistance program during enrollment.