4.6. SR 11-03-2014 - Laserfiche WebLink

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City of Elk=' Request for Action River To Item Number Mayor and City Council 4.6 Agenda Section Meeting Date Prepared by Consent November 3, 2014 Lauren Wipper, Human Resource Representative Item Description Reviewed by 2015 Flexible Benefit Design Cal Portner, City Administrator Reviewed by Action Requested Approve,by motion,the 2015 Flexible Benefit Plan Design. Background/Discussion Renewal/Premium Rates Our initial Medica renewal was a total premium increase of 2.7%,which is a fantastic renewal for our group;however,the premium change was not consistent from plan to plan,ranging from -10.2% to +6.0%. Our brokers,Financial Concepts Inc. (FCI),negotiated with Medica to rebalance the premium change and a resulting premium impact of-0.5%. The copay and $500 deductible plans have no change and the high deductible health plans are decreasing 0.7%. A few employees have expressed dissatisfaction with our dental provider,Principal. FCI went to market to find options from other providers. Principal quoted a renewal at 3%. We received quotes from Assurant,Delta Dental, and MetLife. Assurant and MetLife's quotes provided premium savings; however,they included significant benefit decreases for employees using out-of-network providers. FCI further negotiated a 0%premium change from Principal for 2015 with whom we will renew for 2015. Dental Opt-out Two years ago,we implemented a Medical Coverage Opt Out option,which has been well-received by employees who were either double covered under their spouses plan or benefitted from being covered under their spouses plan. Employees opting out are required to provide proof of other medical coverage. This year,we would like to add an opt-out option for dental coverage. Most dental plans offer only single and family levels of coverage. Some employees may be double covered because their spouse elects to carry family coverage or may benefit by taking coverage only on a spouses plan. City dental coverage was previously required for all employees though our plan. With a dental opt-out option,there is no additional cost to the city. Employees may elect medical coverage and opt out of dental coverage or vice versa,with proof of coverage. Adding the dental opt-out option requires an amendment to our Flexible Benefits Plan document. Scott Wold, of Hitesman&Wold,is preparing the amendment which will be brought to Council for approval. P a w E R E U 6 Y NaA f RE]