4.5. SR 07-25-1994 - Laserfiche WebLink

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. employees electing family coverage is $180.59 per month. That means that the 17 employees will pay an additional $36,840.36 for the upcoming contract year. These employees will see a net pay reduction of approximately $90 per paycheck (for employees pre taxing their premium, this amount will be approximately $65). If the City were to change to the PEIP contract, each employee would be allowed to choose one of the four programs that would best fit his or her needs. For purposes of calculating the cost to the City and employees, the most expensive single plan will be used and an average family premium will be used. The most expensive single premium is $172.75. Changing to this plan would cost the City $6,486.48 annually. Of this, $2,702.70 would come from the 1994 budget and the remainder from the 1995 budget. The average family premium would be $535.61. However, it is likely that many employees would select coverage with a premium of either $567.62 or $584.79. Based on the average premium, the monthly increase per employee would be $32.56, meaning that the employees would pay an additional $6,642.24 annually excluding co-pays and de ductibles. With the PEIP Plan, both the single and family coverage employees would incur out of pocket costs for co-pays and deductibles. For the most part, the out of pocket maximum is $1,000 per individual and $2,000 per family. . Type of Covera!!e The current contract with HealthPartners is for comprehensive medical coverage. HealthPartners has also provided quotes for a co-pay and an 80/20 plan. The co-pay plan results in a premium reduction of 3.2 percent and an 80/20 plan results in an additional reduction of approximately 5 percent. Taking into consideration both of these reductions, the single premium would be $202.43 and the family premium would be $640.89. Any of the plans provided by HealthPartners would be more comprehensive than the plans under the PEIP program. The PEIP coverage is more restrictive and, of course, less comprehensive. Union Issues Any time there is a reduction in the aggregate value of benefits, the Union must vote to approve the change in benefits. The City Council can decrease the non-union employees benefits without employee approval. If the Council elects to contract with PEIP and the Police Union does not approve the reduction in benefits, the Police Union and non-union employees would each be covered under different health insurance contracts. Although this is certainly possible, it does limit options for either group due to the size of the . groups and it may cause friction between the employee groups.