Laserfiche WebLink
<br />rtl ~( <br />( ?I <br />.Y11, <br />E fi. River <br /> <br /> <br />ITEM 7.7. <br /> <br />MEMORANDUM <br /> <br />FROM: <br /> <br />MAYOR & CITY COUNCIL \ <br />LORI JOHNSON, FINANCE DIRECTOR "'yYI'J <br /> <br />TO: <br /> <br />DATE: <br /> <br />JUNE 23, 1994 <br /> <br />SUBJECT: UPDATE ON EMPLOYEE HEALTH <br />INSURANCE <br /> <br />e <br /> <br />The City's current health coverage contract through HealthPartners (Group <br />Health) is up for renewal on August 1, 1994. HealthPartners has indicated <br />that the City's insurance rates will increase 36% on August 1, 1994. <br />Unfortunately, HealthPartners did not provide that information to the City <br />until Tuesday, June 14. I had requested that the information be provided in <br />early May so that the City would have adequate time to re-bid the contract or <br />to explore other options available for providing employee insurance benefits. <br /> <br />e <br /> <br />There are several attachments to this memo which better explain the health <br />insurance issue. The first attachment shows the monthly insurance <br />premiums for January 1, 1993, through the proposed August 1, 1994, <br />increase. The new rates proposed by Health Partners are $215.93 for single <br />coverage and $683.64 for family coverage. This is an increase of 53% above <br />the premiums paid on January 1, 1993. However, more importantly for the <br />employees electing family coverage, the employee share of the insurance cost <br />has gone from $211.06 per month to $431.52 per month or an increase of <br />104%. Starting with the July 14 paycheck, employees with family coverage <br />will pay an additional $90.29 per paycheck. This information was conveyed <br />to employees during employee meetings on Monday, June 20. Employees of <br />course were concerned about the issue, especially those electing family <br />coverage who will again see a decrease in pay due to the substantial <br />insurance premium increase. Employees electing family coverage are in <br />favor a changing to a 80/20 plan with co-pays in order to reduce premiums. <br />However, employees electing single coverage are not as eager to make a <br />change due to the fact that they would then have out-of-pocket costs. We <br />currently have 39 employees electing single coverage and 17 employees <br />electing family coverage. Those numbers include a total of 14 employees in <br />the police union, of which four elect family coverage. <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />