2.2 ERMUSR 11-14-2017 - Laserfiche WebLink

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5.4 Wage& Benefits Committee Update On September 12, 2017 the Wage and Benefits Committee (W&BC)met to review dental, ancillary, and health insurance renewals, and also discussed some considerations for future meetings. Ms. Slominski presented the insurance renewals that were discussed and went over the bids and broker recommendations. The following were the Committee's conclusions and recommendations: Dental and Ancillary Insurance—By separating the dental from the ancillary services and having two separate providers, a significant savings would be recognized. For dental insurance, Delta provided the best rate option with a 5%decrease from our current rates that also includes an increase in the annual maximum benefit from $1,500 to $2,000, and a two year rate guarantee. Ms. Slominski noted that as an added detail,Delta has had very modest rate increases over the past several years so we should see more stability in our future rates,which should eliminate the need to switch providers every few years just to keep the rates manageable. For ancillary insurances of life and long term disability, Principal provided the best rate option with a 19.06%decrease from our current rates, and a two year rate guarantee. Health Insurance and Employer HSA Contribution—The health insurance renewal came in favorably with just a 5% increase. Committee recommendation was to stay with the same provider, Blue Cross Blue Shield, for 2018. Currently two health insurance plans are offered to employees,the HSA plan and co-pay plan; based on low enrollment numbers and the possibility of the plan being eliminated, Committee recommendation was to no longer offer the co-pay plan. And for the employer HSA contribution, Committee recommendation was to maintain the same employer contribution for 2018: $650 for the single plan, and $1,985 for the single+1 and family plans. Health Insurance Opt-Out Program—Ms. Slominski shared that last year the Commission approved a health insurance opt-out program of$300 per month for a one year trial period. Although this was not discussed at the W&BC meeting,this is something that the Commission will need to consider for approval. Commissioner Stewart asked how many people participated in the opt-out program. Staff responded. Moved by Commissioner Thompson and seconded by Commissioner Westgaard to separate our dental and ancillary service providers, utilizing Delta for dental, and Principal for ancillary. Motion carried 5-0. Moved by Commissioner Stewart and seconded by Commissioner Thompson to approve the Blue Cross Blue Shield health insurance renewal with the 5% increase,to eliminate the co-pay insurance plan offered to employees, and to approve the 2018 employer HSA contribution amount of$650 for the single plan,and $1,985 for the single+1 family plans. Motion carried 5-0. Moved by Commissioner Nadeau and seconded by Commissioner Westgaard to continue Page 5 Regular Meeting of the Elk River Municipal Utilities Commission October 10,2017 24