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/i <br />Elk River ~~~ <br />To; Elk River Municipal Utilities commission <br />John Dietz <br />Jerry Gunaphrey <br />Daryl Thompson <br />from. Theresa Slominsl~i <br />Subject. 20 i 0 Dental <br />As reported to you at our April meeting, we received our June ~, 20 i0 insurance renewal <br />information fram Assurant, which currently provides our Dental, Life & Accidental <br />Death &Dismenaberment SAD&D}, and Long Te~~.aa Disability LTD} insurances, The <br />total was an increase of ~ 5% and we budgeted fora 7°/a increase, Our insurance broker <br />sent out requests for proposals and Jodi Berge, Account Executive with our insurance <br />brol~er, David Martin Agency, lags provided tlae enclosed letter and supporting <br />information to summarize the proposal information received. Also, please note that it was <br />requested in tlae proposals to move the renewal date to January 1 instead of June ~ xn <br />subsequent years, so that it lines up with our health insurance renewal, <br />V~ith the proposals, Assurant has given us options to reduce the dental premium increase <br />or eliminate it. These optians involve some tradeoffs with the deductibles, or tlae annual <br />maximum amounts, but there are increases with the other insurances of Life & AD&D <br />and LTD as well, Pote~atial savings achieved from. inaplementi~ag any changes to the <br />dental are eroded with the other insurances increases, A small increase in dental <br />premiums ultimately means a doubling of the deductibles to an additional X25 per <br />individual total $50} or X75 per family total $150}, A zero increase in dental premiums <br />means doubling the deductibles a~~d decreasing the anzaual zaaaximum amouxats covered ~a <br />decrease from $1,500 to ~ i,000 per year}, Any major events would have a potential $500 <br />impact if the a~anual maximum would be reached. This is a per plan pa~~ticipant maxinau~.n <br />and so a family of four could potentially have a $2,000 impact. Per our plan <br />representative, we do have participants that reach the maximum. Please refer to the <br />spreadsheet completed by David Martin Agency to see our current plan and these <br />potential changes in the plans compared. <br />The other proposals offer additional savings ixa premiums, but even further reductions in <br />tlae value received, and fu~.~ther increases in out-of pocket expenses for tlae employees. <br />