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J <br />Elk River -~ <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />Apri13, 2007 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />Jerry Gumphrey <br />Jim Tralle <br />From: Bryan Adams <br />Subject: Health Care Savings Plan <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />A number of years ago (4 or 5), our employees were researching a Health Care Savings <br />Plan (HCSP) administered by the Minnesota State Retirement System. At that time, it <br />was a new program with little history. All employees needed to participate. Unanimous <br />consensus was not achieved so the research stopped. There is again a large interest by <br />our employees to utilize the state administrated HCSP program. <br />In short, the HCSP program allows employees to set aside tax free wages in a savings <br />plan to be used to pay health insurance and out of pocket medical bills after retirement. <br />Money taken out of this plan is also tax free. The attached brochure explains this <br />program in detail. This plan now has four to five years of history and has a larger <br />participant group. There is no cost to the employer except for the additional accounting <br />to keep track of the payroll deduction. Anytime our employees want to be responsible <br />and address their future medical needs, we should encourage them. <br />The employee insurance task group reviewed this HCSP plan. The issue still remains, <br />that all employees must participate in this plan. The survey below was voted on by all <br />employees and it passed 29 yes's and 5 no's, not unanimous, but 85%. <br />