Agenda - Council - 12/11/2007 - Laserfiche WebLink

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pc+- 5 .7 CONSIDER A RESOLUTION APPROVING BENEFITS CONTRACTS By: Givonna Reed Kone, Human Resources Manager Background: Blue Cross Blue Shield has been the City's health insurance carrier since January 2004. During the fall of 2007, the City issued a request for proposals for health insurance as per Minnesota Statutes. Shortly after the City's RFP was issued, Blue Cross Blue Shield offered the Ciiy a 29% increase in health insurance premiums for 2008. Blue Cross Blue Shield later adjusted its increase to approximately 20%. After an extensive review of the market, staff is recommending that the City enter into a two-year agreement with HealthPartners for health insurance.. HeaithPartners was able to match the plans currently offered by the City and their overall increase for 2008 is 14%. In addition, HealthPartners has offered the City a maximum increase of 16% for 2009. With respect to dental and life insurance, the City currently receives dental and life insurance benefits through Delta Dental and Standard Insurance, respectively. The City received a 9.9% increase in dental .premiums for 2008 and a rate cap of f% for 2009. . • There will be no increase in life insurance premiums for 2008. Staff is recommending that the City remain with Delta Dental and Standard Insurance for 2008. l:n September 2007, the City began offering Long Term Disability insurance through Standard Insurance to non-Patrol Officer/non-Sergeant staff. (Patrol Officers and Patrol Sergeants akeady had a similar plan in place.) This is an employee-paid benefit and there is no cost to the City. Funding Source: The City's monthly health insurance contribution will be covered by the 2008 General Fund Budget. The City does not contribute to dental premiums or supplemental life uisurance. Committee Action: Motion to approve benefits contracts with HealthPartners; Delta Dental and Standard Insurance. Re i e by - City Administrator • CC: 12-11-07 -16.1-