5.4.B. SR 11-09-2009 - Laserfiche WebLink

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ITEM 5.4.B. City of Elk .~-. River MEMORANDUM T: agar and City ®uncil : Lauren dipper, Human Res®urce Representative GATE; avers er 9, 2o~ U J CT; Health gnsurance Flexible enetits ®ntri uti®n I am pleased to inform you that the City is experiencing its best medical insurance renewal in years. Due to employees being wise consumers of health care and a good year in relation to claims, there will be a slight decrease in premium for two of the three medical plans that we offer. In detail, for 2010 the premiums for the X25 Co-pay Plan will increase ~ .39%, the premiums for the $500 Deductible Plan urill decrease .32%, and the premiums for• the High Deductible Health Plan will decrease 3.35%, In addition, HealthPartners has agreed to a rate cap of no more than 1 C~% for 201 ~ , The dental premiums are increasing 9% for 2010. City Administrator Lori Johnson and I collaborated on the best way to utilize the dollars budgeted far the city con~:ibution to employee's flexible benefits plans for 2010. ~e considered a number of options and came up with one that we feel worl~s well to help employees continue to be wise consumers o£ health care. The proposal is to provide a 2.5% increase to the amount the City contributes to employee's flexible benef is plans and contribute $240 to the Health Savings Accounts of employees who choose the High Deductible Health Plan, A 2,5% increase to the City contribution will beep the employee p~.•emium costs far the X25 Co-pay plan about the same as 2009. ~e currently have only 1$ employees :~n this plan.} ~Iith a 2.5% increase in the City contribution and the decrease in premium, employees who choose one of the other two plans will have an out-off pocket premium cost savings as compared to 2009, A spreadsheet outlining the proposed plan is attached. Lori Johnson and I will both be available at Monday's meeting to discuss the 2010 renewal and answer any questions. Z will bring this item back to the Council on November 1 fir'' for final approval of the City's contribution.