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aiy or <br />Elk -,.-. <br />River <br />MEMORANDUM <br />T: day®r and ~~~ Council <br />FRCS: Duren dapper, Human Res®urce Reresen~a~ive <br />DATE: N®ve~n~er 9, 200 <br />SUBJECT: ~eal~h Insurance Flexible eneis an~riu~i®n <br />I am pleased to inform you that the City is experiencing its best medical insurance renewal in <br />years. Due to employees be:~ta.g wise consumers of health care and a good year in relation to <br />clai~~s, there will be a slight decrease in premium for two of the three :medical plans that we <br />offer. <br />In detail, for 2010 the premiums foi• the X25 Co~pay Plan will increase 1,39%, the premiums <br />for the X500 Deductible Plan will. decrease .32%, and the premiums for the High Deductible <br />Health Plan will decrease 3.38%. In addition, HealthPartners has agreed to a rate cap of no <br />more than 1 ~%for 2011. The dental premiums are increasing 9%for 20~ 0. <br />City Administrator Lori Johnson and I collaborated on the best way to utilize the dollars <br />budgeted far the city canti:ibut;ion to employee's flexible benefits plans for 20I0. ~Ie <br />considered a number of options and came up with one that we feel worl~s well to help <br />employees continue to be wise consumers of health care. The proposal is to provide a 2.5% <br />increase to the amount the City contributes to employee's flexible benefits plans and <br />conttibute X240 to the Health Savings Accounts of employees who choose the High <br />Deductible Health Plan. <br />A 2.5% increase to the City contribution will l~eep the employee premium costs for the $25 <br />Co-pay plan about the same as 2009, ~we currently have only 18 employees in this plan.} <br />with a 2.5% increase in the City contribution and the decrease i.n premium, employees who <br />choose one of the other two plans will have an out-off pocket premium cost savings as <br />compared to 2009. <br />A spreadsheet outlining the proposed plan is attached, Lori Johnson and I will both be <br />available at Nlonday's meeiing to discuss the 2010 renewal and answer any questions. 7 will <br />bring this itet-n bacl~ to the Council on November 1 Gtr' for final approval of the City's <br />cantributian. <br />