5.07 ERMUSR 11-14-2023 - Laserfiche WebLink

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�i Elk River --�- Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Mark Hanson — General Manager MEETING DATE: AGENDA ITEM NUMBER: November 14, 2023 5.07 SUBJECT: Health Insurance Update ACTION REQUESTED: Approve the 2024 ERMU employee benefits offering including a continued employer contribution to health savings accounts. BACKGROUND: Three years ago, ERMU moved to a health savings account (HSA) qualifying, high deductible health insurance plan (HDHIP). With the move to HDHIP, the Wage & Benefits Committee recommended that ERMU provide an 85% employer paid contribution to premiums and an employer funded HSA in an amount that equates to 85% of an employee's deductible. At the time of this change, it was agreed, the Commission would review the employer HSA contribution annually. DISCUSSION: Through the benefits renewal process, we learned our current health insurance company (Blue Cross Blue Shield) would be increasing rates by 5.5% along with increasing member deductibles. As part of our benefit broker's regular process, our group was reviewed by other top health insurance companies in the small group market. In doing so, an insurer (HealthPartners) was found with a similar plan design and a smaller increase to 2023 rates at 4.3% and no increase to member deductibles ($2,500 for single and $5,000 for family coverages). Additionally, because we currently have HealthPartners for dental insurance, bundling our health insurance with them will decrease our group's family dental rates by 25%. There will be no other changes to ERMU's benefit offerings for 2024. Staff recommends maintaining the original Wage & Benefit Committee recommendation of an employer provided HSA contribution of 85%. The contribution is $2,125 for single coverage and $4,250 for family coverage. The 2024 monthly premiums for medical coverage are $114 for single, $228 for single +1, and $346 for family coverage. Page 1 of 1 102