5.06 EMRUSR 11-12-2024 - 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 12, 2024 5.06 SUBJECT: Health Insurance Update ACTION REQUESTED: Approve the 2025 ERMU employee benefits offering including a continued employer contribution to health savings accounts. BACKGROUND: Four years ago, ERMU moved to a health savings account (HSA) qualifying, high deductible health insurance plan (HDHP). With the move to the HDHP, 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: As part of our benefit broker's regular process, our group was reviewed by other top health insurance companies in the small group market. Through the benefits renewal process, we learned all three major carriers are increasing rates significantly. Our current health insurer, HealthPartners, is increasing rates by 19.5%. The resultant budget impact of $147,800 was included in the 2025 budget. Blue Cross/Blue Shield (BC/BS) is increasing by 13.5% but has a higher deductible. Medica is increasing by 9.4% but has a higher deductible, a significantly higher out-of-pocket maximum, and copays on non -generic prescriptions until you reach your out-of-pocket maximum. See chart below: Company HealthPartners BC/BS Medica Deductible (Single/Family) $2500/$5000 $2700/$5400 $2700/$5400 Out -of -Pocket Maximum $5000 $5400 $6800 Increase 19.5% 13.5% 9.4% Projected Budget Impact $147,800 $102,500 $70,800 Advantages/disadvantages (pros/cons) to each plan are listed on the next page: Page 1 of 2 118