4.7 SR 10-07-2024The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.7
Meeting Date
October 7, 2024
Prepared By
Lauren Wipper, Human Resources Manager
Item Description
2025 Flexible Benefits Plan
Reviewed by
Cal Portner
Tina Allard
Action Requested
Approve, by motion, the 2025 Flexible Benefits Plan design.
Background/Discussion
Again, we had a tough year with high medical claims, and our claims experience called for a more than 30%
rate increase. Fortunately, we had a 15% rate cap for 2025, which is what we received for premium increases.
We were given a rate cap of 19% for the 2026 medical renewal.
The co-op we are with, The Better Health Collective, went out for bid this year and is switching from
HealthPartners to BlueCross BlueShield for our coverage. The plans are staying the same with the IRS-
required deductible increase. Provider networks are changing slightly, as are covered prescriptions. The
Employee Assistance Program is changing, and now all employees will be covered by our membership in The
Better Health Collective. Previously, we paid separately for off-plan employees through HealthPartners. We
will be rolling out some other exciting ancillary benefit changes with this switch to employees through the end
of the year.
Premiums and offerings for all our other benefits available through the Flexible Benefits Plan are unchanged.
These benefits include dental, short-term and long-term disability, and additional life insurance as well as pre-
tax health savings plans, and health and dependent care flexible spending accounts.
Each year, we allocate the amount budgeted for the Flexible Benefits Plan based on the last known
enrollment. Enrollment is subject to change during open enrollment and throughout the year for new hires,
terminations, and qualified changes. The Plan's design provides a dollar amount to each employee based on
the family level of medical coverage they elect. In the last several years, we have been able to offer insurance
plans that have no out-of-pocket premium cost to employees and provide additional HSA contributions to
employees to help with the high deductibles. By wrapping the additional HSA funds into the city contribution
amount this year, we are still able to provide one plan with no out-of-pocket premium cost. However, there
is no additional HSA contribution for 2025.
Financial Impact
Funds for the 2025 Flexible Benefits Plan are included in the 2025 preliminary budget.
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Mission/Policy/Goal
The Elk River Mission
Attachments
1. 2025 Flexible Benefits Plan Renewal Rates
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2025 Flexible Benefits Plan Renewal Rates
Single +Spouse +Child(ren) Family
City Contribution 712.00 1,490.00 1,478.00 2,100.00
$1650 BCBS Aware 807.00 1,751.00 1,738.00 2,506.00
Monthly Employee Cost 95.00 261.00 260.00 406.00
Annual Employee Cost 1,140.00 3,132.00 3,120.00 4,872.00
$3300 BCBS Aware 716.00 1,554.00 1,543.00 2,225.00
Monthly Employee Cost 4.00 64.00 65.00 125.00
Annual Employee Cost 48.00 768.00 780.00 1,500.00
$3300 BCBS High Value 667.00 1,448.00 1,438.00 2,073.00
Monthly Employee Cost -45.00 -42.00 -40.00 -27.00
Annual Employee Cost -540.00 -504.00 -480.00 -324.00
Opt-Out of Medical 300.00
DeltaDental 43.86 116.08
Add'l Monthly HSA
Contribution 0.00 0.00 0.00 0.00
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