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City Contribution <br /> The city maintains a Cafeteria-style plan with a pre-determined contribution for all insurance benefits. <br /> We budget each year based on the last known enrollment,which is subject to change throughout the year. <br /> The city contribution is a 5%increase over last year's total. As you may recall,last year we experienced a <br /> steep (20%) premium increase from Medica,which was negotiated down from the initial renewal of 35%. <br /> Health Savings Account (HSA) Contribution <br /> Each year,the IRS reviews and adjusts the criteria it uses to determine if a health plan qualifies as a High <br /> Deductible Health Plan (HDHP). For 2015, the deductible on our type of plan increases by$100 for <br /> single coverage and $200 for family coverage. In this case, family means anything more than one person. <br /> Typically,with the design of the Flexible Benefit Plan,we attempt to provide a contribution to the HSAs <br /> of enrollees in the HDHP to offset the deductible. This amount has ranged from $240 to $672 per year. <br /> Last year,we were not able to make this contribution due to the high premium increases,but would like <br /> to resume these contributions this year. To offset the deductible increase and help with the annual <br /> deductible,we propose to provide a $324 HSA contribution to employees electing a HDHP. <br /> Financial Impact <br /> The projected benefit renewal is accounted for in the preliminary budget. <br /> Attachments <br /> ■ 2015 Flexible Benefits Plan Renewal spreadsheet <br />