Agenda - Council - 11/24/2009 - Laserfiche WebLink

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Background REVISED PC CASE CONSIDER APPROVING THE 2010 CITY HEALTH INSURANCE CONTRIBUTIONS FOR NON -UNION EMPLOYEES By: Givonna Reed Kone, Human Resources Manager In an effort to manage health care costs over the long term, encourage consumerism, and provide adequate health insurance coverage to employees, staff is proposing that beginning in 2010 the city will offer the following health plans: • $2000 deductible plan (Three for Free) • $1500 deductible plan • $25/100% copay plan The city will continue to offer the $25copay /100% plan which received an 18% increase in premiums. This plan will be offered in response to employee interest, however, employee costs for this plan will increase significantly, subject to union negotiations. The city's current $25copay /80% Hospital plan will no longer be offered as of January 1, 2010. The 9% increase the city budgeted for 2010 healthcare expenses will be used to keep the city's contribution to premium consistent with previous years and provide funding toward the deductibles. Giving employees a larger role in healthcare decision - making through the use of deductible plans and wellness education and tools will have the long term effect of lowering the city's claims experience and healthcare costs. Below are premiums for the new 2010 plans as well as employee deductible and maximum out -of- pocket costs. Using 2010 rates for the city's current plans as a starting point, premium savings will range from 8% to 30% depending on the new plan selected by each employee. Premium savings can be used by employees to cover any portion of the deductible or out -of- pocket costs not covered by the city's contribution. Staff is proposing the 2010 health insurance contribution levels in the table below for non -union employees. Per state statute, the city must negotiate its contribution to health insurance with union employees; therefore, when the city reaches tentative agreement with the AFSCME group, LELS Sergeants and LELS Patrol, that information will be presented to the City Council for consideration.