3.2. SR 09-17-2001 - Laserfiche WebLink

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TO: FROM: DATE: SUBJECT: MEMORANDUM Mayor & City Council Lori Ziemer, Asst. Finance Director September 17, 2001 Workers' Compensation Insurance Renewal Iteml 3.2. The city's workers' compensation insurance contract with the League of Minnesota Cities Insurance Trust (LMCIT) renews on October 1, 2001. Attached is a copy of the quote received by the LMCIT that is based on our estimated payroll for the contract period. The quote includes a five percent premium credit of $5,744 for the city's participation in a managed care program with Corvel, but does not yet reflect the deductible credit. Each year the city can choose a deductible option in return for a premium credit. For the past several years, the city has carried a $5,000 per occurrence deductible for medical expenses. For the new contract period a $5,000 deductible results in a premium credit of $15,508. Increasing the deductible to $10,000 would result in a premium credit of $20,677, or an additional savings of $5,169. Also attached for your review is a deductible comparison worksheet based on historical claim information from the last three contract years. Based on this information, it appears as though the city would have incurred additional deductible costs in only one of the last three years and realized greater savings by increasing the deductible from $5,000 to $10,000. Action Requested The City Council is asked to approve the workers' compensation insurance renewal with the LMCIT for the contract period of October 1, 2001 to October 1, 2002. As in past years, this contract would include a $5,000 per occurrence deductible. If the council wishes to change the deductible, this item may be removed from the consent agenda for council discussion.