5.6 ERMUSR 11-8-2022�i
Elk River --�-
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Theresa Slominski — General Manager
MEETING DATE:
AGENDA ITEM NUMBER:
November 8, 2022
5.6
SUBJECT:
Health Insurance Update
ACTION REQUESTED:
Approve the 2023 ERMU employee benefits offering including continuing the employer
contribution to health savings account (HSA) deductible funding amounts, switching dental and
ancillary providers, and the addition of employer paid short term disability (STD) insurance.
BACKGROUND:
Two years ago, ERMU changed health insurance plans and moved to 85% employer
contribution of premiums, and the employer funded 85% of deductibles. Annually, the
Commission was to review the HSA contribution funding.
In late 2021, all ERMU employees were given a "stay interview" to learn about their employee
experience and why they choose to remain working at ERMU. During these interviews, several
employees requested that ERMU add STD insurance to its benefits offering. Employer paid STD
insurance is a common benefit offered to employees that adds to the competitiveness of an
employer's total rewards package.
DISCUSSION:
Our current health insurance plan renewal is a 1.5% increase, for a monthly family premium of
$328, and the same deductibles of $2,500 for single coverage and $5,000 for family coverage.
As the deductibles have not changed, the Wage & Benefits Committee recommends
maintaining the same 85% contribution to the deductibles, this is $2,125 for single and $4,250
for family.
Our dental insurance renewal for 2023 is increasing 15.1%, and our ancillary insurances are
increasing 11.1% combined. Through the work of our benefits broker, we found ERMU can
move to a new dental insurance provider and save 27.9% (retaining the same level of coverage
and a similar network of dentists) and switch our ancillary insurances to a new provider and
save 29%.
By making the above changes to dental and ancillary insurance providers, ERMU can offer STD
insurance and still save approximately $4,000; a win for both the employees and the employer.
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