6.1. ERMUSR 11-09-2004 - Laserfiche WebLink

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Elk River Municipal Utilities 13069 Orono Parkway phone: 763.441.2020 Elk River, MN 55330 Fax 763 441 8099 To: Elk River Municipal Utilities Commission Jerry Takle James Tralle John Dietz From: Bryan Adams Subject: Health Insurance As we are well aware, health care costs continue to rise. The Elk River Municipal Utilities currently carries a fully insured"Blue Cross Aware Gold"plan thru Resource Training& Solutions Pool. We have been informed that our health insurance costs will increase 15.9% effective 1-1-05 or approximately$40,000. In reviewing our options, we are still better off continuing in the Resource Training & Solutions Pool but possibly looking at other Blue Cross alternatives. Attached is the following plan benefit schedules: 1) Current Aware Gold with co-pay plan. 2) Comprehensive Major Medical CMM w/$15 co-pay (a) 3) Comprehensive Major Medical CMM w/$25 co-pay (b) The premiums are as follows: Monthly Annually %of Increase Single Family Aware Gold current $222.50 $839.50 $250,392 Aware Gold after 1-1-05 $258.00 $973.00 $290,222 15.91% CMM w/$15 co-pay (a) $242.50 $914.50 $272,772 8.94% CMM w/$25 co-pay (b) $238.00 $897.00 $267,564 6.86% As you recall, the employee pays 23%and Elk River Municipal Utilities pays 77%of the total monthly premium for single and family. The difference in the plans is that Aware Gold with a co-pay has NO major deductible. The CMM is a major medical in which the employee pays 20%of the cost for in and outpatient services,to a cap of$1,100 per person, $5,000 per family. Office visits are paid 100%after the co-pay. Prescription coverage would also change from a flat co-pay to 80%coverage, member responsible for a minimum of$10,and a maximum of$30 per prescription. The reason for reviewing the medical insurance is rising costs and Aware Gold plan is becoming the very best where the two alternate plans appear to be more in the mainstream. Staff solicits your comments on this issue.