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If the Council is comfortable with the assumptions and supporting information provided by <br />the Relief Association, it can simply increase the benefit level as requested. However, if <br />the Council is not comfortable with the assumptions, the approved benefit level may be <br />adjusted to any amount between $2,674.00 (the benefit level can never be decreased by <br />the Council) and $2,970.00. The City would be required to fund any shortfall in l~elief <br />Association assets used to make required benefit payments on the Council approved per <br />year amount although a shortfall is unlikely unless something catastrophic happens. <br />However, it is possible that a decrease in the Association's portfolio value may cause a <br />required municipal contribution the following year even though no increase in benefit level <br />is requested. <br /> <br />Even though a municipal contribution is not required based on $2,970.00, as in the past, <br />the budget includes funds for a municipal contribution to the Association. In addition to <br />acting on the benefit level, the Council may want to consider the 1998 contribution. <br /> <br />As was stated earlier, this item does not need to be approved until August 1 which means <br />that the Council must take action at the July 27 meeting at the latest. <br /> <br />Health and Dental Insurance Proposals <br /> <br />The city's non-union health and dental insurance contracts with Medica expire on July 31. <br />As you may recall, the city was fortunate to be a part of the Minnesota Chamber Coalition <br />which offered a three year contract with guaranteed rate increases of less than 6.5 percent. <br />This program was canceled last year, but all remaining contract years were honored. <br />Proposals for coverage have been received and will be presented at the meeting. A <br />summary of the results is as follows: <br /> <br />Proposals received from: <br /> <br />Medica <br />Blue Cross & Blue Shield (BCBS) <br />League of Minnesota Cities Insurance Trust <br />(LMCIT) <br />Epic Life <br /> <br />Hanratty & Associates (with underlying Medica or <br />BCBS coverage) <br /> <br />Denied Proposal request: <br /> <br />Health Partners <br />American Medical Security <br /> <br />After reviewing premium rates and coverage, Medica and BCBS were selected as the two <br />best proposals. Each offered several different plans from full coverage to $1,000 <br />deductible. Currently our rates are age based meaning that the monthly premium is based <br />on the age of the employee, and if applicable, age of spouse and number of children. This <br />age based rate system makes it somewhat more difficult to analyze the rates. Also, the <br /> <br /> <br />