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E04y1� ,.,�� Request for Action <br /> River <br /> To Item Number <br /> Mayor and City Council 4.9 <br /> Agenda Section Meeting Date Prepared by <br /> Consent October 19, 2015 Lauren Wipper, Human Resource Representative <br /> Item Description Reviewed by <br /> 2016 Flexible Benefits Plan Design Cal Portner, City Administrator <br /> Reviewed by <br /> Action Requested <br /> Approve,by motion, the 2016 Flexible Benefits Plan Design. <br /> Background/Discussion <br /> Renewal/Premium Rates <br /> Our initial group health insurance renewal with Medica called for a premium increase of 11.2%. Our <br /> brokers,NFP Corporate Benefits (formerly Financial Concepts Inc.),negotiated with Medica to reduce <br /> the premium increase to 5%. <br /> All of the other plans we offer within our Flexible Benefits Plan will have no premium increase for 2016. <br /> These plans include dental insurance, term and additional life insurance, and long- and short-term <br /> disability insurance. <br /> City Contribution <br /> The city maintains a Cafeteria-style plan with a predetermined contribution for all insurance benefits. <br /> The annual budget is based on the last known enrollment,which is sub)ect to change throughout the year. <br /> The city contribution is a 5%increase over last year's actual expenditure. <br /> The proposed plan design impacts employee premium costs differently,ranging from a$7.36 saving in <br /> one single High Deductible Health Plan (HDHP) to a$36.08 increase for the family$500 deductible plan. <br /> The family co-pay plan increases $50.19 per month but no one has elected the plan for a couple of years. <br /> Health Savings Account (HSA) Contribution <br /> Typically, the Flexible Benefit Plan includes a contribution for HSAs enrollees in the HDHP to offset <br /> deductibles. This amount has ranged from $240 to $672 per year. The 2015 contribution is $324,in <br /> years with high premium increases no contributions were made. This plan design proposes a $480 HSA <br /> contribution to employees electing the HDHP. <br /> Financial Impact <br /> The pro)ected benefit renewal is accounted for in the preliminary budget. <br /> Attachments <br /> ■ 2016 Flexible Benefits Plan Renewal spreadsheet <br /> POWERED 6T <br /> AR <br />