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<br />,(/ -'\( <br />( II <br />.ity of 1Y <br />Ell{ River <br /> <br /> <br />Item #4.6. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor & City Council <br /> <br />FROM: <br /> <br />Lori Johnson, Finance Director <br /> <br />DATE: <br /> <br />November 22,1999 <br /> <br />SUBJECT: Health Insurance Contract Proposals <br /> <br />As many of you may be aware, health insurance contract renewals have been <br />averaging between 25 to 35 percent or more for most businesses, both large <br />and small, in Minnesota. In anticipation of a substantial increase, the city <br />requested proposals for the January 1, 2000, contract year. Proposals were <br />received from four companies offering ten different programs. <br /> <br />. <br /> <br />On Friday, November 19, 1999, informational meetings will be held with the <br />employees to discuss the health and dental insurance renewals. Final Medica <br />numbers were just received within the past week and information is still being <br />gathered regarding the dental program. Therefore, detailed information on <br />the recommended proposals is not included in the packet. However, attached <br />for your review is a list of the proposals received and the resulting increase <br />along with a sheet showing the cost to the employees for the various insurance <br />programs. <br /> <br />I will be at Monday's meeting to present additional information and answer <br />questions regarding the proposals. At this time staff and our insurance agents <br />are recommending that Medica provide health insurance to our employees and <br />that dental be provided by Delta Dental. Delta Dental's premiums are lower <br />than our current Met Life premiums and the coverage is slightly better. Also, <br />Medica's rates for health insurance may be lower for some employees <br />depending upon the type of coverage an employee elects. However the copay <br />has been increased from $10 to $15. <br /> <br />Action Requested <br /> <br />. <br /> <br />The City Council is asked to consider health insurance proposals for non-union <br />employees. Although both the union and non-union dental renewals were <br />earlier this fall, the council may consider changing to Delta Dental to improve <br />benefits at a decreased premium. <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br />