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<br />. <br /> <br />2001 Insurance Quotes <br /> <br />First, it is important to discuss health insurance since the entire benefits <br />proposal is built around health insurance. The City currently has its health <br />insurance contract with Medica. Medica offered a renewal increase of just six <br />percent - far less than expected. However, Medica declined to offer a dual <br />choice plan. Apparently, even though they told us last year that it would be <br />offered in 2001, they do not offer that to groups under 100. So we decided to <br />solicit a quote from HealthPartners on their new nine-tier plan. We were <br />encouraged by early discussions with HealthPartners, but in the end <br />HealthPartners declined to offer a quote because they couldn't compete with <br />Medica's rates. This means that our rates are fair and not out of line, but it <br />does nothing to meet our goal of offering more choices to employees. This left <br />us with only one option, to renew with Medica. <br /> <br />Previous Council Direction <br /> <br />. <br /> <br />At the April 24 meeting, the Council census was to consider a cafeteria <br />(flexible benefits) plan with "different contribution levels depending upon the <br />type of coverage selected." The minutes go on to say "the Council would like <br />the family contribution increased and would consider a plan that offers some <br />after insurance dollars to employees with single coverage." Based on this <br />information, the Committee is proposing a cafeteria plan with different <br />contribution amounts depending upon the type of coverage selected. <br /> <br />The ProlJosal <br /> <br />The plan proposed by the Committee is almost identical to the cafeteria plan <br />in Maple Grove except that the contribution amounts are different. Please <br />refer to the attached OVERVIEW taken directly from Maple Grove's <br />employee information for details on how a flex plan works. The proposed <br />contribution amounts are shown on the next attachment, Employee <br />Insurance Benefits, 2001 Benefits Committee Recommendation. The left side <br />of this sheet provides current year information. The right side, labeled 2001 <br />Contract Year, is the proposed flex plan for 2001. The bottom left side <br />provides current group demographics and the bottom right side shows the <br />City's costs. <br /> <br />. <br /> <br />Based on the current group demographics, the City's annual cost is $246,187. <br />Even if the contribution is not increased in 2001, the cost increases to <br />$254,539. If the contribution is increased to $460 per month, the annual cost <br />increases to $261,824. If the Council agrees with the flex plan as proposed, <br />the annual cost increases to $286,920. The 2001 budget proposal includes <br />