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REQUEST FOR ACTION <br />To Item Number <br />Ci Council 5.6. <br />Agenda Section Meeting Date Prepared by <br />Administration November 3, 2008 Lauren Wipper, Human Resource <br /> Re resentative <br />Item Description Reviewed by <br />2009 Flexible Benefits Plan Contribution Lori ohnson, Ci Administrator <br /> Reviewed by <br />Action Requested <br />Approve the City's contribution to the 2009 Flexible Benefits Plan. <br />Background/Discussion <br />Last week we received plan renewal information from HealthPartners. You may recall that when we <br />switched our health insurance to HealthPartners last year, they gave us good rates as well as a premium <br />rate guarantee for 2009. Although HealthPartners calculated our increased rates to be higher, our actual <br />premium increase for the $25 Co-pay and $500 Deductible plans will be 16% and for the High <br />Deductible Health Plan (HDHP), 18%. As well, the deductible amount for the HDHP is increasing from <br />$2,200 to $2,300 based on the IRS Cost of Living Adjustment calculation. <br />Last year our dental premitun rates did not increase. We are seeing a slight, 4.53%, increase in dental <br />premium rates this year. <br />Aside from the $100 increase in the deductible for the HDHP, health and dental plan designs are not <br />changing for 2009. We will again offer three options for health coverage and the employees will be able <br />to choose between single and family dental. The benefits covered (prescriptions, services, supplies) under <br />all of the plans will be covered in the same manner as in 2008. <br />The City's 2009 proposed budget includes a 5% increase to the City's contribution to the Flexible <br />Benefits Plan. Through the Flexible Benefits Plan, the City's contribution first pays for hfe, single dental, <br />and single HDHP coverage. Employees can use any money leftover and their own contributions to <br />purchase health insurance with greater coverage, family health or dental insurance, or a number of other <br />insurance benefits. <br />Financial Impact <br />As mentioned above, the proposed budget for 2009 includes a 5% increase to the City's contribution to <br />employee's Flexible Benefits Plans. Actual costs depend on the family level of coverage employees <br />choose. Employees choosing single coverage will receive $438.00 toward their plan each month. <br />Employees also covering either their spouse or children will receive $640.00. Employees who are <br />covering a spouse and children will receive $860.00. <br />