5.2 ERMUSR 11-09-2005 Elk River
I Municipal Utilities
13069 Orono Parkway phone: 763.441.2020
Elk River, MN 55330 Fax:763.441.8099
October 25, 2005
To: Elk River Municipal Utilities commission
Jerry Takle
Jim Tralle
John Dietz
From: Theresa Slominski
Subject: 2006 Health Insurance
' A task groupcomposed of AmyKral (office), Mark Fuchs (electric), Trevor Gwaizdon
p ( ) ( )
(electric), Richard Wagner (water), Bryan, and myself was assembled to review health
insurance costs for 2006 and prepare a proposal to present to the commission.
• In developing this proposal, items taken into consideration were the presentation that Jodi
Berg from the David Martin Agency gave, and feedback resulting from this presentation.
One specific item of feedback was that there wasn't currently a plan for single + one
' dependent, only single and family plans. (There was a dental plan for this option, but not
a health plan.) We asked BCBS to provide the premium costs with all three plan options
so that this may be considered. Other feedback was that the employees wanted to keep
' the Aware Gold option and were willing to pay more for it.
To review, the presentation's suggestion had a 15% increase in the health insurance for
the employer, with the rest of the cost being absorbed by the employees. The employee
cost was at different percentage levels depending on if it was a single or family plan
(23% for the single plans, and 27% for the family plans.) Additionally, there were only
two plans, single and family. A copy from the presentation is attached for reference.
The proposal that staff is recommending is a 3-Tiered option and so it has Single, Single
' + One, and a Family plan. The proposal is with an increase from 23% to 25% for the
employees' portion of the premiums. This is a 25% employee/75% employer cost sharing
for all plan options. Additionally, the employees are willing to extend this to include
dental. At this percent for distribution of premium cost, it is a 15% increase to the
employer and a 28% increase to the employees. A proposal recap is attached.
I
lip
Insurances 3 Tiers
Annual Annual
I
Employee Cost Employer Cost
2005 Monthly Premiums
Aware Gold BCBS Dental Both
Single $ 258.00 $ 31.83 $ 289.83 $ 78,024.34 $ 261,211.94
I Single+ 1 $ 67.18 $ 67.18
Single+ 1 $ 67.18 $ 67.18
Family $ 973.00 $ 113.31 $ 1,086.31
15% $ 300,393.73
I2005 Per pay period premiums
Aware Gold BCBS Dental Both
Single $ 27.39 $ 3.38 $ 30.77 $ 78,024.34 $ 261,211.94
I
Single+1
Single+ 1 $ 7.13 $ 34.52
$ 7.13 $ 110.42
Family $ 103.29 $ 12.03 $ 115.32
2006 Monthly Premiums(23%)
Aware Gold BCBS Dental Both
I
Single $ 386.50 $ 31.83 $ 418.33 $ 92,148.64 $ 308,497.64
Single+ 1 $ 812.00 $ 67.18 $ 879.18
Family $ 1,237.00 $ 113.31 $ 1,350.31
I
Per pay period premiums 27%
Aware Gold BCBS Dental Both
Single $ 48.16 $ 3.97 $ 52.13 $ 108,174 50 $ 292,471.78
0 Single+ 1 $ 101.19 $ 8.37 $ 109.56 38.6% 12.0%
Family $ 154.15 $ 14.12 $ 168.27
I Per pay period premiums 26%
Aware Gold BCBS Dental Both
Single $ 46.38 $ 3.82 $ 50 20 $ 104,168 03 $ 296,478.25
Single+ 1 $ 97.44 $ 8.06 $ 105 50 33 5% 13.5%
IFamily $ 148.44 $ 13.60 $ 162.04
I
Per pay period premiums 25%
Aware Gold BCBS Dental Both 51741
Single $ 44.60 $ 3.67 $ 48.27 $ 100,161.57 $ 300,484.71
Single+1 $ 93.69 $ 7.75 $ 101.44 28.4% 15.0% tient-Yin/4.65
I
Family $ 142.73 $ 13.07 $ 155.81
Per pay period premiums 24%
I Aware Gold BCBS Dental Both
Single $ 42 81 $ 3.53 $ 46.34 $ 96,155.11 $ 304,491.17
Single+ 1 $ 89.94 $ 7.44 $ 97.39 23.2% 16.6%
Family $ 137.02 $ 12.55 $ 149.57
I
II. Insurances 3 Tiers
Annual Annual
I
Employee Cost Employer Cost
Per pay period premiums 23%
CMM$15 BCBS Dental Both
Single $ 38.64 $ 3.38 $ 42.02 $ 87,242.74 $ 292,073.54
ISingle+ 1 $ 81.21 $ 7.13 $ 88.34 11.8% 11.8%
Family $ 123.72 $ 12.03 $ 135.75
I
111
111 Option 3 : Employees pay more.
' This option means keeping our
current Aware Gold plan.
• Our current contribution strategy is to pay
77% of your total premium.
' • The 2006 strategy would be to pay 77%
of single coverage and 73% of dependent
coverage.
1 1
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•
Option 3: Employees pay more.
' 2006 Aware Gold Plan
Monthly Employee Premiums
Aware Gold
Coverage (Current) CMM $15 CMM $25 CMM $300
Status Copay Copay Deductible
2005 2006
' Single $59.34 $71.53 $67.39 $66.13 $63.48
Family $223.79 $316.85 $254 27 $249.44 $239.43
7*,
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