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contribution resulting in an employee contribution for single coverage. If the premiums <br />are averaged, all employees with family coverage will pay more each paycheck if another <br />• employee's family coverage premium increases. The uncertainty in the amount of the <br />employee's cost of the family premium and changing the average premium are potential <br />problems. In speaking with our labor relations consultant, she has informed me that it is <br />not discriminatory to charge premiums to employees based on age. In other words, it is <br />OK to charge each employee the same premium that the insurance company is charging <br />the City for that employee. Administratively it would be much less complicated to <br />chazge each employee an individual premium. <br />The third issue to be resolved is the amount of the City's contribution. The contribution <br />level for the union is $295.00 per month. In previous years, the contribution has been <br />the same for the union and non-union employees. <br />In addition to health insurance renewals, both dental and life rates have been reviewed. <br />The life insurance premium will decrease $1.00 to $5.25 per month per employee. The <br />coverage will remain with the current carrier and will remain at $25,000. HealthPartners <br />has submitted dental renewal rates with no increase. The rates would remain at $21.63 <br />for single and $54.05 for family. <br />ACTIONREQUESTED <br />The Council is asked to act on the following items: <br />• Selection of a plan for the contract yeaz beginning July 1, 1995. <br />HealthPartners <br />Medica Premier Chamber <br />Determination of how rates will be charged to employees. <br />Averaged <br />Based on actual employee premium <br />Setting the City contribution for non-union employees <br />• <br />