5.4.B. SR 11-09-2009ITEM 5.4.B.
City of
Elk .~-.
River
MEMORANDUM
T: agar and City ®uncil
: Lauren dipper, Human Res®urce Representative
GATE; avers er 9, 2o~
U J CT; Health gnsurance Flexible enetits ®ntri uti®n
I am pleased to inform you that the City is experiencing its best medical insurance renewal in
years. Due to employees being wise consumers of health care and a good year in relation to
claims, there will be a slight decrease in premium for two of the three medical plans that we
offer.
In detail, for 2010 the premiums for the X25 Co-pay Plan will increase ~ .39%, the premiums
for the $500 Deductible Plan urill decrease .32%, and the premiums for• the High Deductible
Health Plan will decrease 3.35%, In addition, HealthPartners has agreed to a rate cap of no
more than 1 C~% for 201 ~ , The dental premiums are increasing 9% for 2010.
City Administrator Lori Johnson and I collaborated on the best way to utilize the dollars
budgeted far the city con~:ibution to employee's flexible benefits plans for 2010. ~e
considered a number of options and came up with one that we feel worl~s well to help
employees continue to be wise consumers o£ health care. The proposal is to provide a 2.5%
increase to the amount the City contributes to employee's flexible benef is plans and
contribute $240 to the Health Savings Accounts of employees who choose the High
Deductible Health Plan,
A 2,5% increase to the City contribution will beep the employee p~.•emium costs far the X25
Co-pay plan about the same as 2009. ~e currently have only 1$ employees :~n this plan.}
~Iith a 2.5% increase in the City contribution and the decrease in premium, employees who
choose one of the other two plans will have an out-off pocket premium cost savings as
compared to 2009,
A spreadsheet outlining the proposed plan is attached. Lori Johnson and I will both be
available at Monday's meeting to discuss the 2010 renewal and answer any questions. Z will
bring this item back to the Council on November 1 fir'' for final approval of the City's
contribution.
2~~~ Health and Dental insurance ~ne~al
City Contribution
Life Ins
Single Dental
Remaining for I~eafth Ins
$25 Co-pay Mthly Premium
Monthly Employee Cost
$500 Ded Mthly Premium
Monthly Employee Cast
$2,400 HDHP Mthly Premium
Monthly Employee Cost
Monthly HSA Contribution
Si__ngle +Spouse +Child ren Family
449.OD 556.00 656.00 882, 00
4.5D 4.50 4.50 4, 50
37.69 37.69 37.69 37,69
406.81 613, 81 613.81 839.81
506, 84 1,1 D9.28 1, 099.65 1, 675.27
104.03 495.47 485,84 835.46
438.85 960.48 952.14 1,450.55
32,04 346.67 338.33 61 D.74
355, 92 778.97 772.21 1,176.42
-50.89 165.16 158.40 336,61
20.OD 20.00 20.00 20.00