4.0. SR 12-06-1999 - Laserfiche WebLink

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rei ----'\) ( ); trl{ Item #4. MEMORANDUM TO: Mayor & City Council Pat Klaers, City ~ December 6, 1999 FROM: DATE: SUBJECT: Discuss City Contribution to Employee Health Insurance . The city has 64 employees covered under the Blue CrosslBlue Shield insurance policy. In 2000 the medical coverage will be offered by the Medica policy. This excludes the police union employees who are covered under a separate program. Of these 64 employees, currently 40 have employee only coverage, 13 have family coverage, and the remaining 11 have either employee/child or employee/spouse coverage. These numbers will change for 2000 and it is anticipated that approximately 20 employees will select family, spouse, or child coverage. The city currently contributes $355 per month toward the insurance for each employee. All employees get their insurance paid by the city, but the single coverage employees do not use all of the funds made available by the city, while the other three coverage groups have to contribute in order to pay the full premium. The city really has two different issues to look at with its insurance and benefits program. One issue is to begin offering cafeteria type benefits whereby employees can select the benefits they desire from a menu of selections. The other issue is dealing with the high cost of family insurance premIums. I think everyone is somewhat familiar with the cafeteria program. Under this program employees have a certain amount of money available to them and they select their insurance plan and anything else that can be fit under the maximum figure set by the city. This can include disability insurance, additional life insurance, or, in some cases, getting the extra available dollars in additional wages. . 13065 Orono Parkway · P.O. Box 490. Elk River, MN 55330. TDD & Phone: (612) 441-7420. Fax: (612) 441-7425