5.6. ERMUSR 04-14-2009 - Laserfiche WebLink

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Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 Apri18, 2009 To: Elk River Municipal Utilities commission John Dietz Jerry Gumphrey Daryl Thompson From: Theresa Slominski Subject: 2009 Dental 5.b Phone: 763.441.2020 Fax: 763.441.8099 We have received the Assurant Insurances renewal information that would be effective June 1, 2009.The Life Insurance is going up one penny, and the LTD insurance is remaining the same. The current dental insurance plan is going up 12.5%. Assurant has given us two other options to reduce the dental premium increase to 10.3% or 0%. Both plans involve some tradeoffs with the annual maximum amounts (a decrease from $1,500 to $1,000 per year) and the deductibles (individual same or increase from $25 to $50, and family same or increase from $75 to $150) and all coinsurances remain the same. Please refer to the spreadsheet completed by David Martin Agency to see these plans compared. We did not budget fora 12.5% dental increase but a 7% increase. We have also had some participation levels change with the addition of dependents and that has increased our premiums beyond what we had budgeted. A 0% increase in premiums is where we need to be and that ultimately means an increase to the deductibles of an additional $25 per individual (total $50) or $75 per family (total $150). Any major events would have a potential $500 impact if the annual maximum would be reached. This is a per plan participant maximum and so a family of four could potentially have a $2,000 impact. Per our plan representative, we do have participants that reach the maximum, and that is approximately 6% of the group. This information was presented to staff to provide them with the information and solicit their feedback. This also gave them the opportunity to ask questions, and discuss the various options as a group. Staff was very understanding of the need to stay within the budget, and consider cost savings. They recognize the need for their contribution to a compromise and will to absorb the increased deductible and annual maximum to keep the plan costs at a 0% increase.