11-24-2003 CC MIN - Laserfiche WebLink

Home Browse Search

City Council Minutes November 24, 2003 ............................. 4. Open Mike Page 2 No one appeared for Open Mike. 5.2. Consider Non-Union Health and Dental Insurance Contracts Finance Director Lori Johnson provided the Council with information regarding the city's non-union health and dental insurance contract renewals. Ms. Johnson stated that staff was not pleased with the renewal rates that HealthPartners offered and so a decision was made to request rates from Medica. Ms. Johnson stated that the rates that Medica submitted were almost the same as last year's rates. The 2004 Medica plan options will include a S15 co-pay plan and a $500 deductible plan. Ms. Johnson stated that staff is recommending that the dental insurance contract be renewed with HealthPartners as their rates did not increase for 2004. Councilmember Dietz questioned if employees must switch doctors when the city switches insurance companies. Ms. Johnson stated that this is one of her main concerns and that when she looks at switching insurance companies she looks to make sure that the clinics in the area are covered. Ms. Johnson noted she expects that almost all of the employees will be able to remain at their current clinics. Councilmember Dietz also questioned if HealthPartners premium increase was due to high claims by the city last year. Ms. Johnson stated that was not the case. She stated that the city's claims were less than the premiums paid last year and that part of the increase was due to HealthPartners estimating the healthcare trend higher than Medica for 2004. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER TVEITE TO AWARD THE NON-UNION HEALTH INSURANCE CONTRACT FOR 2004 TO MEDICA AND TO RENEW THE 2004 NON-UNION DENTAL INSURANCE CONTRACT WITH HEALTHPARTNERS. THE MOTION CARRIED 5-0. 5.3. Finance Director Lori Johnson stated that staff has received requests from employees for the city to offer voluntary short-term disability insurance. Ms. Johnson stated that the city would like to offer short-term disability as part of the city's cafeteria plan. She noted that the plan would be entirely voluntary and there would be no cost to the city. MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILMEMBER KUESTER TO OFFER SHORT-TERM DISABILITY AS PART OF THE EMPLOYEE'S CAFETERIA PLAN. THE MOTION CARRIED 5-0. Consider Enterprise Fund Budgets City Administrator Pat Klaers provided the Council with background information and details on the three enterprise funds managed by the city per his staff report dated November 24, 2003.