3.3. SR 11-16-2009chi®n___ eu~~t~d
Approve a 2.5% increase to the City's contribution to employees' Flexible Benefits Plans and a X240.00
contribution to the Health Savings Accounts of employees electing the High Deductible Health Plan.
a~c~oundl i~cu~~ion
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This item was brought before tla.e City Council November 9, 2009 for discussion. The Council was in
agreement to the proposed contribution fot• 20~ 0.
A 2,5% increase to tl~e City's contribution to employees' Flexible Benefits Plans results in the following
contribution amounts:
Single coverage: $449.00 pe~.• month
Employee and spouse, $65G,00 per month
Employee and children): $650,00 per month
Family coverage: $882,00 per month
Employees electing the Nigh Deductible Health Plan will receive a contribution of X20.00 per month into
theif.• Health Savings Account. Employees enrolled all of 20~ 0 will receive a total of $244.00.
financial i~pa~c~
These funds are included in the 20 ~ 0 budget.
tach~~ns
Memo from the November 9, 2009 City Council meeting.
CSI®~i 1~1ot~ot~ by _ 5eco~d by Vote
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MEMORANDUM
T: day®r and ~~~ Council
FRCS: Duren dapper, Human Res®urce Reresen~a~ive
DATE: N®ve~n~er 9, 200
SUBJECT: ~eal~h Insurance Flexible eneis an~riu~i®n
I am pleased to inform you that the City is experiencing its best medical insurance renewal in
years. Due to employees be:~ta.g wise consumers of health care and a good year in relation to
clai~~s, there will be a slight decrease in premium for two of the three :medical plans that we
offer.
In detail, for 2010 the premiums foi• the X25 Co~pay Plan will increase 1,39%, the premiums
for the X500 Deductible Plan will. decrease .32%, and the premiums for the High Deductible
Health Plan will decrease 3.38%. In addition, HealthPartners has agreed to a rate cap of no
more than 1 ~%for 2011. The dental premiums are increasing 9%for 20~ 0.
City Administrator Lori Johnson and I collaborated on the best way to utilize the dollars
budgeted far the city canti:ibut;ion to employee's flexible benefits plans for 20I0. ~Ie
considered a number of options and came up with one that we feel worl~s well to help
employees continue to be wise consumers of health care. The proposal is to provide a 2.5%
increase to the amount the City contributes to employee's flexible benefits plans and
conttibute X240 to the Health Savings Accounts of employees who choose the High
Deductible Health Plan.
A 2.5% increase to the City contribution will l~eep the employee premium costs for the $25
Co-pay plan about the same as 2009, ~we currently have only 18 employees in this plan.}
with a 2.5% increase in the City contribution and the decrease i.n 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 Nlonday's meeiing to discuss the 2010 renewal and answer any questions. 7 will
bring this itet-n bacl~ to the Council on November 1 Gtr' for final approval of the City's
cantributian.
2a~ D Health and en~l 1nSUrance enewaN
City Contribution
Life Ins
Single Dental
Remaining for Health Ins
$25 Co-pay Mthly Premium
Monthly Employee Cost
$500 Ded Mthly Premium
Monthly Employee Cost
$2,400 HDHP Mthly Premium
Monthly Employee Cost
Monthly HSA Contribution
Single ~S~ouse +Child ren Family
449, 00 656, 00 656, 00 882, 00
4,50 4,54 4,50 4.50
37,69 37,69 37,69 37.69
406, 81 613, 81 613, 81 839, 81
506, 84 1,109, 28 1, 099, 65 1, 675, 27
100, 03 495, 47 485, 84 835.46
438,85 960,48 952.14 1,450.55
32, 04 346.67 338, 33 610, 74
355,92 778,97 772,21 1,176,42
w50,89 165,16 158,40 336,61
20.00 20,00 20.00 20,00