5.4. ERMUSR 10-10-2006 - Laserfiche WebLink

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Elk River Municipal Utilities 2007 Health Plan Renewal Prepared by David Martin Agency, Inc. October 2006 ~~ ~ .Employee Benefit Specialists :,. Pho 952.920.4516 1 .888.889.9013 2007 Health Plan Rates Fax 952.920.2655 The Aware (Double) Gold with $15 Copay Plan from Blue Cross Blue Shield of Minnesota will increase by 7.39% on January 1, 2007. This is annual increase of $26,478 or $2,206.50 per month. Total 2006 annual premium will be $384,600. Average monthly rates will be as follows: Single = $415; Single + One = $872, Family = $1,328.50. Final 2007 rates include an actual rate increase of 11% plus an additional 0.2% due to your group's specific claim experience. Current health insurance trend rates in the general marketplace are running 11% - 13%. The Service Cooperative pool is indicating a lower trend rate of 7.6% - 8.1%. Health Plan Insurance Pool The plan carrier is Blue Cross Blue Shield of Minnesota which provides plan benefits and claims/administrative services. Renewals are distributed through Resource Training & Solutions, the Service Cooperative and David Martin Agency, Inc. Plan rates for Elk River are based on the MN Care small group insurance pool of 2-50 employees under the Resource Training & Solutions umbrella. Their MN Care pool is now comprised of 16 employer groups accountable for about 11.2% of total pool employees. (Large group employers number eight and account for 88.8% of total pool employees.) Resource Training and BCBS calculated 2007 renewal rates based on: 1. claim experience of the small group pool 2. claim experience of Elk River Municipal Utilities 3. demographics of Elk River Municipal Utilities Rate History of Total Pool Resource Training & Solutions: Insurance Pool Rate History Year Minimum Maximum 2007 4.5% 27.0% 2006 MN Care Lar e Grou 7% 2% 35% 30% 2005 MN Care Lar e Grou 3.0% 2.8% 24.0% 11.6% 2004 3.0% 24.5% 2003 5.0% 20.0% 2002 4.0% 25.0%