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EGty1� ,.,�� Request for Action <br /> River <br /> To Item Number <br /> Mayor and City Council 4.5 <br /> Agenda Section Meeting Date Prepared by <br /> Consent November 7, 2016 Lauren Wipper, Human Resource Representative <br /> Item Description Reviewed by <br /> 2017 Flexible Benefits Plan Design Cal Portner, City Administrator <br /> Reviewed by <br /> Action Requested <br /> Approve,by motion, the 2017 Flexible Benefits Plan Design. <br /> Background/Discussion <br /> Renewal/Premium Rates <br /> Medical <br /> Our initial renewal with Medica called for a premium increase of 17.41%. Our brokers, NFP Corporate <br /> Benefits,negotiated with Medica to reduce the premium increase to an average of 9.5%. We have <br /> eliminated the Copay plan because enrollment was down to two employees. We have added another <br /> High Deductible Health Plan (HDHP) that has an 80/20 coinsurance after the deductible. The premium <br /> rates are lower than the other plans and we felt this would be a desirable option for employees who have <br /> been able to build a balance in their Health Savings Account. <br /> Dental <br /> After receiving employee concerns regarding our dental provider,we circulated a survey to discern <br /> employee satisfaction. The results showed that 30 of the 59 respondents were not happy with the city <br /> plan. We went to market to find other options and selected Delta Dental. In-network coverage is the <br /> same as our current plan and the premium rates are 4.9%lower with a 2-year rate guarantee. <br /> Vision <br /> In the dental survey we also asked employees if they would be interested in a vision plan. 78% of <br /> respondents indicated they would so we went to market to find out what options were available. We <br /> have decided to offer EyeMed's Voluntary Vision Plan. <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 subject to change throughout the year. <br /> The city contribution is a 5%increase over the last year's actual expenditure. <br /> In previous years, the group term life insurance premium has been deducted from each employee's city <br /> contribution amount. To accommodate the way this plan is set up in our new HRIS system,UltiPro,we <br /> are accounting for the life insurance premium amount from the total budget prior to determining the <br /> individual allocations to the plan. <br /> POWERED 6T <br /> A IR <br />