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The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br /> <br /> <br />Request for Action <br /> <br />To <br />City Council <br />Item Number <br />4.7 <br /> <br />Meeting Date <br />October 7, 2024 <br />Prepared By <br />Lauren Wipper, Human Resources Manager <br /> <br />Item Description <br />2025 Flexible Benefits Plan <br />Reviewed by <br />Cal Portner <br />Tina Allard <br /> <br />Action Requested <br />Approve, by motion, the 2025 Flexible Benefits Plan design. <br /> <br />Background/Discussion <br />Again, we had a tough year with high medical claims, and our claims experience called for a more than 30% <br />rate increase. Fortunately, we had a 15% rate cap for 2025, which is what we received for premium increases. <br />We were given a rate cap of 19% for the 2026 medical renewal. <br /> <br />The co-op we are with, The Better Health Collective, went out for bid this year and is switching from <br />HealthPartners to BlueCross BlueShield for our coverage. The plans are staying the same with the IRS- <br />required deductible increase. Provider networks are changing slightly, as are covered prescriptions. The <br />Employee Assistance Program is changing, and now all employees will be covered by our membership in The <br />Better Health Collective. Previously, we paid separately for off-plan employees through HealthPartners. We <br />will be rolling out some other exciting ancillary benefit changes with this switch to employees through the end <br />of the year. <br /> <br />Premiums and offerings for all our other benefits available through the Flexible Benefits Plan are unchanged. <br />These benefits include dental, short-term and long-term disability, and additional life insurance as well as pre- <br />tax health savings plans, and health and dependent care flexible spending accounts. <br /> <br />Each year, we allocate the amount budgeted for the Flexible Benefits Plan based on the last known <br />enrollment. Enrollment is subject to change during open enrollment and throughout the year for new hires, <br />terminations, and qualified changes. The Plan's design provides a dollar amount to each employee based on <br />the family level of medical coverage they elect. In the last several years, we have been able to offer insurance <br />plans that have no out-of-pocket premium cost to employees and provide additional HSA contributions to <br />employees to help with the high deductibles. By wrapping the additional HSA funds into the city contribution <br />amount this year, we are still able to provide one plan with no out-of-pocket premium cost. However, there <br />is no additional HSA contribution for 2025. <br /> <br />Financial Impact <br />Funds for the 2025 Flexible Benefits Plan are included in the 2025 preliminary budget. <br />Page 55 of 139