Laserfiche WebLink
<br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Mayor and City Council 4.13 <br />Agenda Section Meeting Date Prepared by <br />Consent November 15, 2021 Lauren Wipper, Human Resources Manager <br />Item Description Reviewed by <br />2022 Flexible Benefits Plan Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Approve, by motion, the Joint Powers Agreement to join the Sourcewell Service Cooperative. <br />Approve, by motion, the Proposed Rates provided by Sourcewell. <br />Approve, by motion, the 2022 Flexible Benefits Plan design. <br /> <br />Background/Discussion <br />The Public Employee’s Insurance Program had a 9% premium increase again this year. Our claims experience is <br />the best we can remember so we decided to test the market. We received bids from BlueCross BlueShield of MN, <br />Medica, HealthPartners, Minnesota Healthcare Consortium, and Sourcewell Service Cooperative. <br /> <br />In evaluating the bids we considered premium rates, plan design, 2023 rate caps, provider networks, and others. <br />We are pleased to recommend the Sourcewell bid. Sourcewell contracts with HealthPartners to provide medical <br />coverage. Before we moved to the Public Employees Insurance Program in 2018, we were with Medica and <br />offered two different insurance plan designs: a $500 deductible plan and a Health Savings Account (HSA) <br />compatible High Deductible Health Plan (HDHP). We will be going back to these two plan designs. Staff <br />estimates an overall decrease in premium of about 1%. <br /> <br />There are no changes to any of the other plans in our Flexible Benefits Plan. In this plan we offer medical, dental, <br />additional life insurance, long-term and short-term disability, health care savings plans, and health and dependent <br />care flexible benefits accounts. <br /> <br />The city maintains a cafeteria-style plan with a predetermined contribution for all insurance benefits. The annual <br />budget is based on the last known enrollment, which is subject to change throughout the year. <br /> <br />The plan is designed to provide a dollar amount to each employee based on the family level of medical coverage <br />they elect. We take the total budget available and determine the best way to allocate that among enrolled <br />employees. Because we have a new provider with a new premium rate structure, it provided an opportunity to <br />redistribute the budgeted city funds. Employees electing the $500 Deductible plan will pay a portion of their <br />premium. Employees electing a HDHP will have city contribution funds remaining to contribute to their HSA or <br />to spend on other coverage offered through the plan. As well, employees who contribute to an HSA will have an <br />additional contribution made to their HSA each month. <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br /> Updated: August 2020 <br /> <br />