3.1. SR 07-13-1998,~ity of
MEMORANDUM
Item #3.1.
TO:
FROM:
Mayor and City Council
Lori Johnson, Asst. City Administrator/
Finance Director
DATE:
July 13, 1998
SUBJECT: Health and Dental Insurance Proposals
At the July 6 City Council meeting, the Council requested that
Councilmember Dietz meet with city staff to discuss the health and dental
insurance proposals for the city's non-union employees. Councilmember
Dietz, insurance consultant Barry Rosenberg, and I met on Tuesday, July 7,
to discuss the various options and proposals available to the city.
After considerable discussion it was agreed, at this time, that it is most
appropriate for the city to continue with a traditional insurance plan and to
review options for partial self-funding at sometime in the future when the
group's claims experience improves and there is more historical trend
information on other groups that have just started self-funding.
A final recommendation on awarding the health and dental contracts is not
available at this time as both Blue Cross and Blue Shield and Medica are
reviewing their proposals and providing updated information to the city. I
will be present at Monday's meeting with the final information necessary to
present a recommendation to the Council. Also, Councilmember Dietz will be
available to answer any questions the Council may have regarding our
meeting.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
HEALTH AND DENTAL INSURANCE
SUMMARY OF MONTHLY COSTS
City Contribution
Life Insurance
Single Dental
Current
34O. O0
4.63
17.90
August 1, 1998
340.00
4.63
18.26
Balance Available for Health Ins.
317.47
317.11
Employee Share of Health Premium
Medica
Single
Family-Average of those who pay
(range of $0 to $371.39)
171.48
BCBS Blue Choice
Single
Employee & Children
Employee & Spouse
Family
90.97
129.84
265.86
BCBS $200.00 Deductible with Wellness
Single
Employee & Children
Employee & Spouse
Family
29.29
62.28
177.74
Police Union
Single
Family
9.66
Current Dental Rates
Single
Family
17.90
51.00
7/13/98
CITY OF ELK RIVER
1998 EMPLOYEE INSURANCE
Non-Bargaining Employees
For Coverage Effective August 1, 1998
HEALTH INSURANCE
Recommended Contract: Blue Cross & Blue Shield
Options: Dual Choice
4 Tier Rates
Contract dates: August 1, 1998 to December 31, 1999
Monthly Premium
$200 Ded.
Blue Choice w/Wellness
Employee 194.32 164.95
Employee & Spouse 446.95 379.39
Employee & Children 408.08 346.40
Family 582.97 494.85
Blue Choice matches existing benefits. $200 I~eductible
plan includes up to $175 wellness (preventative) per member
per year and a maximum out of pocket of $600 per person;
$1,200 per family.
DENTAL INSURANCE
Recommended Contract: Met Life
Contract dates: August 1, 1998 to August 1, 1999
Monthly Premium
Met Life
Single 18.26
Family 48.62
Met Life plan closely matches current plan.
7/13/98