5.6. ERMUSR 04-14-2009Elk River
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
Apri18, 2009
To: Elk River Municipal Utilities commission
John Dietz
Jerry Gumphrey
Daryl Thompson
From: Theresa Slominski
Subject: 2009 Dental
5.b
Phone: 763.441.2020
Fax: 763.441.8099
We have received the Assurant Insurances renewal information that would be effective
June 1, 2009.The Life Insurance is going up one penny, and the LTD insurance is
remaining the same. The current dental insurance plan is going up 12.5%.
Assurant has given us two other options to reduce the dental premium increase to 10.3%
or 0%. Both plans involve some tradeoffs with the annual maximum amounts (a decrease
from $1,500 to $1,000 per year) and the deductibles (individual same or increase from
$25 to $50, and family same or increase from $75 to $150) and all coinsurances remain
the same. Please refer to the spreadsheet completed by David Martin Agency to see these
plans compared.
We did not budget fora 12.5% dental increase but a 7% increase. We have also had
some participation levels change with the addition of dependents and that has increased
our premiums beyond what we had budgeted. A 0% increase in premiums is where we
need to be and that ultimately means an increase to the deductibles of an additional $25
per individual (total $50) or $75 per family (total $150). Any major events would have a
potential $500 impact if the annual maximum would be reached. This is a per plan
participant maximum and so a family of four could potentially have a $2,000 impact. Per
our plan representative, we do have participants that reach the maximum, and that is
approximately 6% of the group.
This information was presented to staff to provide them with the information and solicit
their feedback. This also gave them the opportunity to ask questions, and discuss the
various options as a group. Staff was very understanding of the need to stay within the
budget, and consider cost savings. They recognize the need for their contribution to a
compromise and will to absorb the increased deductible and annual maximum to keep the
plan costs at a 0% increase.
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