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<br />. <br />City of ~ <br />Elk <br /> <br /> <br />Item #4.1. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor & City Council ~ <br />Lori Johnson, Finance Director ~ <br /> <br />FROM: <br /> <br />DATE: <br /> <br />November 27, 2000 <br /> <br />SUBJECT: <br /> <br />Review Medica Health Insurance Quote for Deductible Plan <br /> <br />. <br /> <br />During the employee benefits discussion, the Council asked for information <br />and rates for a deductible insurance plan for all non-union employees. This <br />option is being explored because Medica would not offer both a deductible <br />plan and a co-pay plan to our group. Medica has provided the rates for a <br />$200 deductible plan for all non-union employees. In order to proceed with <br />January 1 implementation of the cafeteria plan, a decision on health <br />insurance needs to be made on November 27. <br /> <br />Attached is a summary of benefits from Medica for the MCS200 ($200 <br />deductible) plan. Also attached is a cost comparison that states the monthly <br />premium for each type of coverage and a comparison of the employee cost for <br />the deductible plan to the current plan as approved by the Council on <br />November 13. <br /> <br />Please review the Plan Information and Employee Premium Savings or (Cost) <br />sections of the cost comparison sheet. The only sizable employee savings in <br />changing to the MCS200 plan is for the employees who take select family <br />coverage (currently two employees). The remaining 36 employees who take <br />select will probably realize no savings after paying out of pocket costs. <br />Employees who take single elect would pay more for less coverage (currently <br />10 employees). In fact, the employees (currently 26) who take elect coverage <br />most likely would not realize any savings by changing to the deductible plan <br />because the out of pocket costs may far exceed the premium savings. Only the <br />two families covered under select may realize a real savings under the <br />deductible plan depending upon their actual out of pocket costs. <br /> <br />. <br /> <br />Finally, under the current contribution structure, the city will realize no <br />savings by changing to a deductible plan. The city's contribution would need <br /> <br />13065 Orono Parkway. P.O. Box 490. Elk River, MN 55330. TDD & Phone (763) 441-7420. Fax (763) 441-7425 <br />