Laserfiche WebLink
<br />Page 1 of 2 <br /> <br /> <br /> <br /> <br /> UTILITIES COMMISSION MEETING <br /> <br />TO: <br />ERMU Commission <br />FROM: <br />Mark Hanson – General Manager <br />MEETING DATE: <br />November 12, 2025 <br />AGENDA ITEM NUMBER: <br />5.08 <br />SUBJECT: <br />Health Insurance Update <br />ACTION REQUESTED: <br />Approve the 2026 ERMU health insurance plan renewal and Health Savings Account (HSA) <br />contribution amounts. <br /> <br />BACKGROUND: <br />Five years ago, ERMU transitioned to a high-deductible health plan (HDHP) with health savings <br />account (HSA) eligibility. At that time, the Wage & Benefits Committee established the <br />following employer contribution structure: <br />• 85% employer-paid contribution to health insurance premiums. <br />• Employer-funded HSA contribution equal to 85% of each employee’s deductible. <br />• The Commission agreed to review the employer HSA contribution annually. <br /> <br />DISCUSSION: <br />As part of the annual benefits renewal process, our broker solicited proposals from the three <br />major carriers in the small group market. All carriers are implementing significant rate increases <br />and plan design changes to offset rising healthcare costs and utilization. The table below shows <br />a comparison between the three carriers: <br /> <br />Carrier HealthPartners BlueCross/BlueShield Medica <br />Individual/Family Deductible $2,700/$5,400 $3,050/$6,100 $2,850/$5,700 <br />Out-of-Pocket Maximum $2,700/$5,400 $3,050/$6,100 $3,650/$7,300 <br />Rate Increase 14.87% 11.15% 2.32% <br />Projected 2026 Budget Impact $153,834.96 $115,361.28 $23,982.72 <br /> <br />HealthPartners (Current) <br />Advantages: <br />• Lowest deductible and out-of-pocket maximum <br />• Includes vision and dental coverage for children (ages 0-18) <br />• No administrative burden to switch carriers <br />• 25% discount on dental insurance when bundled <br />Disadvantages: <br />103