11-05-2007 CC MIN - Laserfiche WebLink

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City Council Minutes Page 12 November 5, 2007 Councilmember Motin asked if they should do an employee match. • Ms. Johnson stated it depends on the employee, but the potential is there for 120 employees to participate. She indicated the council needs to decide first if they should switch over to HealthPartners, and second if they should approve an HSA plan and if so, do they fund it with a match. Councilmember Gumphrey stated employees have the option of changing their plan yearly. He wondered what would happen after a year or two if employees would get out of the HSA plan. Mr. Rosenberg indicated that staff needs to stress that the employees are putting their own money into the plan. Councilmember Gumphrey commented that personally he hadn't heard good things about HSA plans. Councilmember Zerwas agreed with Councilmember Gumphrey, and asked if the council should increase the city's contribution towards health insurance, but bump up the amount an additional 3% for all employees. Coundlmember Gumphrey asked what effect this would have on the budget. Ms. Johnson stated it would cost approximately $8,000 to $9,000 per percent, so for 3% it would cost the city approximately $24,000 - $27,000. Councilmember Gumphrey asked what effect the change from BCBS to HealthPartners • would have on employees. Mr. Rosenberg stated that it's an open access program similar to what the employees have now, and the coverage should be very broad. Councilmember Motin asked if they should take another approach by removing the $250 deductible option and give employees the option to do a HSA plan, stating this plan gives employees that participate in this plan the option of saving for future health care expenses. He asked what the city could contribute towards health care expenses. He also asked if there were concerns with switching between BCBS to HP. Ms. Wipper stated she doesn't anticipate any problems or issues with the change in health care providers. Ms. Johnson stated it is a major concern of hers as well to keep switching from one insurance company to another, and HP did have a broad network so employees shouldn't have a problem with locating their doctor in the network. She stated it was a high priority of the city's to ensure the employees don't have to switch doctors. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER FARBER TO APPROVE TERMINATION OF THE GROUP HEALTH INSURANCE CONTRACT WITH BLUECROSS BLUESHIELD OF MINNESOTA AND ENTER INTO GROUP HEALTH • INSURANCE CONTRACT WITH HEALTHPARTNERS AS OUTLINED IN THE STAFF REPORT. MOTION CARRIED 5-0.