6.1. SR 11-15-2010 - Laserfiche WebLink

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},, ~~ REQUEST FOR ACTION R~.ver TO ITEM NUMBER Ci Council 6.1. AGENDA SECTION MEETING DATE PREPARED BY Administration November 15, 2010 Lauren Wipper, Human Resource Re resentative ITEM DESCRIPTION REVIEWED By Health and Dental Insurance Renewal; Set 2011 Flexible Lori ohnson, Ci Administrator Benefits Contribution; Reallocate EAP Funds REVIEWED BY ACTION REQUESTED • Approve health insurance contract with Medica effective January 1, 2011 • Approve dental insurance contract Principal effective January 1, 2011. • Approve 2011 Flexible Benefits Plan o Two percent increase to the City's contribution to employees' Flexible Benefits Plan o A $28 per month contribution to the Health Savings Accounts of employees electing the High Deductible Health Plan. • Approve utilizing funds previously allocated to the Employee Assistance Plan premiums for other health and wellness initiatives. BACKGROUND/DISCUSSION The 2011 insurance renewal with HealthPartners called fora 16 percent increase in medical premiums and a 3.31percent increase in dental premiums. In an effort to reduce premium costs, both the health and dental packages were bid. There were three bids for the medical package and eight for dental. After review and analysis of the bids with the City's insurance brokers, we are recommending the City award contracts with Medica for health insurance and Principal for dental insurance beginning January 1, 2011. Medica's bid is 1.7 percent above the 2010 premiums and includes rate caps of 13 percent for 2012 and 15 percent for 2013. Principal's bid is a decrease of 15 percent, and this rate is guaranteed through 2012. Health Insurance -Medica The Medica plan design options are the same as the plans offered through HealthPartners - $25 Copay, $500 Deductible, and $2,400 High Deductible Health Plan. While formulary and provider networks might differ, we checked to make sure that all of the Elk River Clinics as well as a few others that we are aware employees use are covered in the Medica Choice Passport network. As well, all of the nearby and primary metro area hospitals are in the Choice Passport network. Included in the premium cost of medical coverage is Medica's Optum program which is their Employee Assistance Plan (EAP). Currently we pay a separate premium for our EAP of $1.50 per employee per month or currently $2,070 per year. We would like to use this money that we're saving by switching to Medica to apply toward other health and wellness initiatives consistent with our approved Health Rewards Program.