4.9 SR 09-18-2023Request for Action
To Item Number
Ma Tor and Ci T Council 4.9
Agenda Section Meeting Date Prepared by
Consent Agenda September 18, 2023 Lauren Wipper, Human Resources Manager
Item Description Reviewed by
2024 Fle�ble Benefits Plan Cal PoYtneY, Ci = Adrninistrator
Reviewed by
Action Requested
Approve, by motion, the 2024 Fle�ble Benefits Plan design.
Background/Discussion
We had a tough �rear with high medical claims and our claims experience called for more than 30% rate increase.
Fortunately, we had a 9% rate cap on our premium renewal with HealthPartners through The Better Health
Collective. We are staying with the same plans offered last year but because theyT are all Health Savings Account
(HSA) compatible plans, the deductible amounts are increasing slightly. (This is a requirement of the IRS.) We
��eYe given a 15% Yate cap foY ouY 2025 Yenewal.
Delta Dental has given us a 7.5% Yate incYease, the first-rate change since 2019. There is no change in the plan
design or network. We have 66 employTees taking familyT dental and 41 employTees taking single dental.
The other insurance plans offered though our Fle�ble Benefits Plan are short-term and long-term disabilityT and
additional life insurance. We have not received rate information on these plans yTet. We also offer health care
savings accounts and health and dependent care fle�ble benefits accounts which employTees can contribute to `vith
remaining funds from the cinT's contribution or through payTroll deduction on a pre-tax basis.
We determine the cityr's contribution to Fle�ble Benefits Plans from the allocated budget based on the last known
enrollment. Enrollment is subject to change at open enrollment and throughout the year for new hires,
terminations, and qualified changes. The plan's design provides a dollar amount to each employTee based on the
family level of inedical coverage they elect. Again, this year we feel very fortunate to be able to offer the two
$3,200 High Deductible Health Plans with cityT contribution funds left over to allocate to other coverage offered
through the plan. Although lower than the previous two years, we are also able to provide an HSA contribution to
the accounts of employ ees who contribute to an HSA.
Financial Impact
Funds foY the 2024 Fle�ble Benefits Plan aYe included in the 2024 pYel.irnivaryr budget.
Mission/Policy/Goal
The Elk River Mission
Attachments
■ 2024 Fle�ble Benefits Plan Renewal Spreadsheet
The Elk River Vision
A 2a�elcolning co�nlnunity 2a�ith T evolutiona� y and spizzted T esou� cefulness, exceptional
se�vice, and coln�nunity engagelnent that encou�ages and ins�iz•es pTo�pe�zty.
rowEREo ar
�I'1 ����
Update�l• January 2023
2024 Flexible Benefits Plan Renewal Rates
Sinqle +Spouse +Child(ren) Family
City Contribution 652.00 1,363.00 1,353.00 1,929.00
HealthPartners
through The Better Health Collective
$1600 HDHP Open Access 700.01 1,519.96 1,508.75 2,176.06
Monthly Employee Cost 48.01 156.96 155.75 247.06
Annual Employee Cost 576.12 1,883.52 1,869.00 2,964.72
$3200 HDHP Open Access 620.47 1,347.27 1,337.33 1,928.83
Monthly Employee Cost -31.53 -15.73 -15.67 -0.17
Annual Employee Cost -378.36 -188.76 -188.04 -2.04
$3200 HDHP Achieve 589.16 1,279.27 1,269.84 1,831.49
Monthly Employee Cost -62.84 -83.73 -83.16 -97.51
Annual Employee Cost -754.08 -1,004.76 -997.92 -1,170.12
Opt-Out of Medical 300.00
DeltaDental 43.86 116.08
Add'I Monthly HSA
Contribution 60.00 60.00 60.00 60.00