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�i <br />Elk River --�- <br />Municipal Utilities UTILITIES COMMISSION MEETING <br />TO: <br />FROM: <br />ERMU Commission <br />Theresa Slominski — General Manager <br />MEETING DATE: <br />AGENDA ITEM NUMBER: <br />November 8, 2022 <br />5.6 <br />SUBJECT: <br />Health Insurance Update <br />ACTION REQUESTED: <br />Approve the 2023 ERMU employee benefits offering including continuing the employer <br />contribution to health savings account (HSA) deductible funding amounts, switching dental and <br />ancillary providers, and the addition of employer paid short term disability (STD) insurance. <br />BACKGROUND: <br />Two years ago, ERMU changed health insurance plans and moved to 85% employer <br />contribution of premiums, and the employer funded 85% of deductibles. Annually, the <br />Commission was to review the HSA contribution funding. <br />In late 2021, all ERMU employees were given a "stay interview" to learn about their employee <br />experience and why they choose to remain working at ERMU. During these interviews, several <br />employees requested that ERMU add STD insurance to its benefits offering. Employer paid STD <br />insurance is a common benefit offered to employees that adds to the competitiveness of an <br />employer's total rewards package. <br />DISCUSSION: <br />Our current health insurance plan renewal is a 1.5% increase, for a monthly family premium of <br />$328, and the same deductibles of $2,500 for single coverage and $5,000 for family coverage. <br />As the deductibles have not changed, the Wage & Benefits Committee recommends <br />maintaining the same 85% contribution to the deductibles, this is $2,125 for single and $4,250 <br />for family. <br />Our dental insurance renewal for 2023 is increasing 15.1%, and our ancillary insurances are <br />increasing 11.1% combined. Through the work of our benefits broker, we found ERMU can <br />move to a new dental insurance provider and save 27.9% (retaining the same level of coverage <br />and a similar network of dentists) and switch our ancillary insurances to a new provider and <br />save 29%. <br />By making the above changes to dental and ancillary insurance providers, ERMU can offer STD <br />insurance and still save approximately $4,000; a win for both the employees and the employer. <br />Page 1 of 1 <br />:• <br />