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MEMORANDUM <br /> <br />Item ~ 3.3. <br /> <br />TO: <br /> <br />FROM: <br /> <br />Mayor and City Council <br /> <br />Lori Johnson, Finance Director <br /> <br />DATE: <br /> <br />September 24, 2001 <br /> <br />SUBJECT: Consider Patrol Union Health Insurance Contract Renewal <br /> <br />The city accepted quotes for the Patrol Union's health insurance contract that is up for <br />renewal on October 1, 2001. However, because of the difficulty in finding plans that match <br />current benefits, only two quotes were received. The Patrol Union currently has Medica <br />Choice Select coverage with no office co-pay, no deductible, and an $11.00 prescription co- <br />pay. Attached is a letter from Barry Rosenberg, the city's insurance agent, regarding the <br />difficulty we experienced in trying to find plans that match current benefits. <br /> <br />At this time, the best renewal option is with Medica. Medica's renewal includes an 11 percent <br />increase in premiums. Medica has chosen to offer both Choice Select and Choice Elect plans <br />to this group. Both plans are offer identical coverage but have different provider networks. <br />The Elect network is smaller; therefore, the premium is discounted seven percent. Employees <br />may chose whichever plan best fits their needs. Although the Patrol Union steward has <br />indicated that Union members do not want the option of choosing the Elect plan, it is being <br />offered in an attempt to help employees reduce their insurance costs. <br /> <br />Action Requested <br />The City Council is asked to authorize the renewal of the Patrol Union health insurance <br />contract with Medica for the Choice Select and Choice Elect plans. <br /> <br />s:Xcouncil~patrolhlth.doc <br /> <br /> <br />