4.9. SR 10-19-2015 E04y1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 4.9
Agenda Section Meeting Date Prepared by
Consent October 19, 2015 Lauren Wipper, Human Resource Representative
Item Description Reviewed by
2016 Flexible Benefits Plan Design Cal Portner, City Administrator
Reviewed by
Action Requested
Approve,by motion, the 2016 Flexible Benefits Plan Design.
Background/Discussion
Renewal/Premium Rates
Our initial group health insurance renewal with Medica called for a premium increase of 11.2%. Our
brokers,NFP Corporate Benefits (formerly Financial Concepts Inc.),negotiated with Medica to reduce
the premium increase to 5%.
All of the other plans we offer within our Flexible Benefits Plan will have no premium increase for 2016.
These plans include dental insurance, term and additional life insurance, and long- and short-term
disability insurance.
City Contribution
The city maintains a Cafeteria-style plan with a predetermined contribution for all insurance benefits.
The annual budget is based on the last known enrollment,which is sub)ect to change throughout the year.
The city contribution is a 5%increase over last year's actual expenditure.
The proposed plan design impacts employee premium costs differently,ranging from a$7.36 saving in
one single High Deductible Health Plan (HDHP) to a$36.08 increase for the family$500 deductible plan.
The family co-pay plan increases $50.19 per month but no one has elected the plan for a couple of years.
Health Savings Account (HSA) Contribution
Typically, the Flexible Benefit Plan includes a contribution for HSAs enrollees in the HDHP to offset
deductibles. This amount has ranged from $240 to $672 per year. The 2015 contribution is $324,in
years with high premium increases no contributions were made. This plan design proposes a $480 HSA
contribution to employees electing the HDHP.
Financial Impact
The pro)ected benefit renewal is accounted for in the preliminary budget.
Attachments
■ 2016 Flexible Benefits Plan Renewal spreadsheet
POWERED 6T
AR
Single +Spouse +Child(ren)Family
City Contribution 590.00 861.00 861.00 1,157.00
Life Ins 4.50 4.50 4.50 4.50
Single Dental 37.31 37.31 37.31 37.31
Remaining for Health Ins 548.19 819.19 819.19 1115.19
Medica Choice Passport Network
$25 Co-pay Mthly Premium 668.31 1,462.68 1,449.97 2,208.98
Monthly Employee Cost 120.12 643.49 630.78 1,093.79
Annual Employee Cost 1,441.44 7,721.88 7,569.36 13,125.48
$500 Ded Mthly Premium 578.66 1,266.47 1,255.47 1,912.68
Monthly Employee Cost 30.47 447.28 436.28 797.49
Annual Employee Cost 365.64 5,367.36 5,235.36 9,569.88
$2,600 HDHP Passport 466.02 1,019.95 1,011.09 1,540.34
Monthly Employee Cost -82.17 200.76 191.90 425.15
Annual Employee Cost -986.04 2,409.12 2,302.80 5,101.80
Medica Elect or Essential Network
$2,600 HDHP Elect/Essential 433.40 948.56 940.32 1,432.52
Monthly Employee Cost -114.79 129.37 121.13 317.33
Annual Employee Cost -1,377.48 1,552.44 1,453.56 3,807.96
Additional HSA contribution $480 for the year, $20.00 per pay period.
Opt-Out of Medical 300.00
2016 Flexible Benefits Plan Renewal