ERMUSR 11-12-2025 - Laserfiche WebLink

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Page 2 of 2 • Highest premium cost increase BlueCross/BlueShield Advantages: • Mid-range pricing and coverage levels Disadvantages: • Higher deductible and out-of-pocket maximum than HealthPartners • Vision only (no dental) for children • Administrative time required to implement carrier change • No dental bundling discount Medica Advantages: • Lowest premium cost Disadvantages: • Highest out-of-pocket maximum ($3,650/$7,300) • Copays on most prescriptions until the out-of-pocket maximum is reached • Vision only (no dental) for children • Administrative time required to implement carrier change • No dental bundling discount SUMMARY: Although changing from HealthPartners has some disadvantages, most notably the loss of the bundling discount, higher deductibles, and the administrative costs of changing carriers, the overall cost difference between HealthPartners and Medica is significant. Even with losing the bundling discount and maintaining HSA contributions at 85% of plan deductibles, switching to Medica saves ERMU approximately $87,000 compared to staying with HealthPartners. While Medica’s higher deductibles and out-of-pocket maximums represent increased financial exposure for staff, maintaining the HSA contribution at 85% helps reduce it, making the switch to Medica a sound financial decision for both ERMU and staff. Staff recommend the Commission approve the following for 2026: 1. Select Medica as our health insurance carrier 2. No change to ERMU’s employer contribution (remains at 85% of plan premium) 3. No change to ERMU’s HSA contribution (remains at 85% of plan deductibles) If approved, the anticipated employee monthly premiums for medical coverage would be: • Individual: $142.00 • Individual+1: $284.00 • Family: $426.00 104