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Background <br />CONSIDER APPROVING THE 2009 CITY HEALTH INSURANCE <br />CONTRIBUTION FOR NON -UNION EMPLOYEES <br />In January 2008, the City entered into a two -year agreement with HealthPartners. <br />HealthPartners offered the City a 14% increase for 2008 premiums and a maximum <br />increase of 16% for 2009. We recently learned that the City's claims experience <br />warranted a 43% increase to 2009 premiums; however, due to the rate cap, our increase <br />will be 16 %. <br />In an effort to further lower our 2009 premiums, lower -cost plan design options were <br />developed and presented to the Labor Management Committee. The plan design changes <br />that were made will result in an overall increase of $13.8% for 2009, instead of 16 %. <br />Below are the 2009 health insurance contributions staff is proposing for non -union <br />employees. The contributions below are based on a 13.8% increase to premiums and the <br />contributions are commensurate with what has been offered to the three union groups. <br />When the City reaches tentative agreement with the unions on the City's 2009 health <br />insurance contribution, the information will be presented to the City Council for <br />consideration. <br />Single $ 441.97 $ 441.97 $100.00 $ 541.97 $0.00 <br />Family $ 1,102.59 $ 705.66 $ 137.39 $ 843.05 $ 396.93 <br />1 5180, % <br />By: Givonna Reed Kone, Human Resources Manager <br />City <br />Total Contribution <br />Premium to Premium <br />City <br />Contribution <br />to VEBA <br />Total <br />COR <br />Contribution <br />CASE #: I <br />EE <br />Contribution <br />to Premium <br />Single $ 517.12 $517.12 $0.00 $517.12 $0.00 <br />Family $ 1,290.57 $ 841.32 $0.00 $ 841.32 $ 449.25 <br />25710 <br />Single $ 555.26 $517.12 $0.00 $517.12 $38.14 <br />Family $ 1,385.93 $ 831.56 $0.00 $ 831.56 $ 554.37 <br />* The City's 2008 HDHP contribution includes the $4.40 monthly claim fee. <br />