City leaders tonight will update City Council on the City'€™s health insurance program.

Over the past year and a half, the City has saved $1 million on its insurance plan due to a pharmacy vendor change. In 2005, pharmacy costs represented 13% of total insurance claims, compared to 15% in 2004. The use of generic medications increased to 52% in 2005. The national average for group health insurance plans is 40%.

Health insurance highlights

* Claim cost increases remain at or below the national average. Claims costs did increase by 7.5% in 2005. The national trend is 9.2%-10%.

* Employee contributions are below private and public national averages. City employees'€™ contributions are 13%. The average employee contributions for private companies are 25%. The average employee contributions for public employees are 20%-25%.

* 1,839 employees are currently enrolled in the program, compared to 1,790 in 2004. The total number of individuals enrolled including dependents is 4,835.

* The average cost per enrollee is $9,650. The average cost per enrollee in 2001 was $6,160. The City covers 87% of employees'€™ health insurance costs. This includes coverage for health, dental, life, and long-term disability.

* The City projects medical claims for 2006 will cost $15.5 million

Tonight'€™s update will also include the City'€™s health insurance plan for the future.

The meeting begins at 5:30 p.m. in Room 128 of the City-County Building.