4.6. SR 10-15-2018 - Laserfiche WebLink

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Request for Action To Item Number Mayor and City Council 4.6 Agenda Section Meeting Date Prepared by Consent October 15, 2018 Lauren Wipper, Human Resources Manager Item Description Reviewed by 2019 Flexible Benefits Plan Cal Portner, City Administrator Reviewed by Action Requested Approve, by motion, the 2019 Flexible Benefits Plan design. Background/Discussion Renewal/Premium Rates Our medical insurance renewal with the Public Employee’s Insurance Program (PEIP) was the best we’ve seen in years with a 3% premium rate increase. Due to education during last year’s open enrollment, employees seemed prepared for the primary care clinic design and the required referrals and few problems have been brought forward. As you may recall, we switched to Delta Dental in 2017 and had a two-year rate guarantee for 2017 and 2018. This is our first renewal with Delta Dental and it called for a 38% rate increase. Delta Dental came back with a 15% increase with another two-year rate guarantee. We have not received 2019 rates for our short-term disability plan but do not anticipate changes. The other plans in our Flexible Benefits Plan are not changing. These plans include vision, additional life insurance, long-term disability, health care savings plans (HSA), and health and dependent care reimbursement accounts. City Contribution The city maintains a Cafeteria-style plan with a predetermined contribution for all insurance benefits. The annual budget is based on the last known enrollment, which is subject to change throughout the year. The plan is designed to provide a dollar amount to each employee based on the family level of medical coverage they elect. When designing the plan this year, we based our city contribution amounts off of current employee costs for the value plan, which is PEIP’s mid-level plan. With an approximate 3% increase to the city contribution, the out-of-pocket premium costs for the value plan are approximately the same as they were in 2018. PEIP’s high-level plan, Advantage, has slightly higher out-of-pocket premium costs and the HSA Compatible plan has slightly lower out-of-pocket costs. In keeping with plan design from previous years, employees may “buy up” to the Advantage plan or they can elect the HSA Compatible plan and have additional funds available to contribute to their Health Savings Account or “buy” other benefits in the plan. Employees can also “buy” other benefits through The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity