5.4. ERMUSR 10-08-2013 i
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Wage and Benefits Committee:
John Dietz—Chair John Dietz, Troy Adams, Mark Fuchs, Theresa
Daryl Thompson— Vice Chair Slominski
Al Nadeau—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
October 8, 2013 5.4
SUBJECT:
Wage and Benefits Committee Update: Health and Dental Insurance
BACKGROUND:
At the September Commission meeting, staff updated the commission that our health insurance
renewal was a 22% increase for 2014. The Wage and Benefits Committee met to review
alternatives for health insurance on September 17`h and October Is'. Six different alternative
plans were reviewed and discussed, in addition to the 100% hospitalization plan currently
offered.
The dental insurance renewal for 2014 was received and it is a 5.9% increase, however this is
only approximately $2,000 in premium dollars. The committee is not recommending any change
to the employee deduction for dental. The LTD and life insurances remain unchanged for 2014.
DISCUSSION:
Alternative health plans were brought forward to consider offering in addition to our current
plan, since we have the capability to offer two plans. The employees would then have the option
to choose a plan to participate in. The committee selected the best of the alternatives compared
to what we currently offer, and that is an HSA plan that is 100% coverage after meeting the
deductibles of single $1,250 and family $2,500.
It was suggested that we consider an adjustment to the current employer/employee share of
80%/20% to be adjusted to 75%/25% for the current plan. This is currently in our Employee
Handbook as policy for an 80%/20% sharing. If this was to be changed, the commission would
need to change the policy.
It was also suggested that we consider the employer contributing an amount towards the
deductible in the HSA accounts to encourage participation. The suggested contribution would be
funded from the employer's premium savings for those selecting to go to an HSA. As a starting
point, the contribution was suggested as the difference of the savings between the current plan
and the HSA plan premiums. This would then be an equal contribution from the employer to
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either plan. If it were decided to do this,there could also be a sunset on the number of years the
commission would contribute at that level.
ACTION REQUESTED:
A decision on health insurance needs to be made at this meeting in order for our broker to be
able to implement any change. Action is requested to determine 1) if we renew our existing plan
2) if the policy should be changed for the employer/employee cost sharing 3) if an additional
USA plan is offered as an alternate 4) whether to make an USA contribution as an incentive to
switch.
ATTACHMENTS:
2014 Health Insurance Comparisons summarizing the plan premiums and suggested cost sharing
and contribution amounts.
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