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UTILITIES COMMISSION MEETING <br />TO:FROM: <br />ERMU Commission Theresa Slominski - GeneralManager <br />MEETING DATE: AGENDA ITEM NUMBER: <br />October 13, 20205.3 <br />SUBJECT: <br />Wage & BenefitsCommitteeUpdate <br />ACTION REQUESTED: <br />1) Approvean insurance plan, 2) Determine related percentage of premium share and <br />deductible funding amounts. <br />BACKGROUND: <br />We have had our medical insurance through Resource Training & Solutions/Blue Cross Blue <br />Shield (RTS) for many years. As a participant with RTS we were able to essentially have a large <br />group insurance plan even as a small employer. Originally, we had a co-pay plan and then made <br />the switch to an HSA plan, as the co-pay plan was going to be eliminated due to cost and we <br />wanted to make a change before we were forced to. Currently, the employer shares in the cost <br />of the insurance at 75% and the employees’ share is25%. Additionally, the employer <br />contributes funds towards the deductible for the employee: $650 for single and $1,985 for <br />family. <br /> <br />Last fall it was asked if we could add an additional medical insurance plan option that would <br />have a higher deductible with lower premiums for those employees willing to take the <br />additional risk. Additional clarification was provided that the deductible was requested to be <br />high enough (suggested to be around $2,800 single and $5,600 family) so the 25% employee <br />share of the insurance premium for a family would be closer to $200 rather than the current <br />$672. This request was based on what competitor electric employers are offering their <br />employees. With the August insurance renewal this year, additional plan options were <br />requested from RTS. <br /> <br />DISCUSSION: <br />Our current plan renewal is a 4.8% increase, for a family premium of $704. As requested, RTS <br />provided five alternative additional plans ranging in deductibles from $2,800 for single and <br />$5,600 for family, to $5,000 for single and $10,000 for family. The family premium range for <br />these same plans ranged from $624 to $520, not a significant decrease, even with the highest <br />deductible amounts. <br /> <br />As the request was specific to the premium amount, a calculation was done to determine what <br />the percentage share could be changed to for the family premium to be closer to $200 with our <br />______________________________________________________________________________ <br />Page 1 of 3 <br />65 <br />