Agenda - Council - 12/14/2010 - Laserfiche WebLink

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Personnel Committee Item #: 4. 2. Date: 11/23/2010 By: Colleen Lasher Administrative Services r. Title: CONSIDER APPROVING THE 2011 CITY HEALTH INSURANCE CONTRIBUTIONS FOR NON -UNION EMPLOYEES Background: In a continued effort to manage health care costs over the long term, encourage consumerism, and provide adequate health insurance coverage to employees, staff is proposing that the city offerer the following HealthPartners' health plans for 2011: • $2000/$4000 deductible plan (Three for Free) • $1500/$3000 deductible plan • $25/100% copay plan Giving etnployees a larger role in healthcare decision - making through the use of deductible plans, wellness education, and encouraging the use of convenience care clinics are beginning to have a positive effect on the city's claims experience. This positive effect on claims experience should ultimately lower the city's healthcare costs. 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. Notification: No notifcation required for this action. Observations: Below are premiums for the 2011 health plans as well as employee deductible and maximum out -of- pocket costs. Staff is proposing the 2011 health insurance contribution levels in the table below for non -union employees. ,6t4..� .. rae.. tree for Freia Single ($2000 ded/$3000 00P) Family ($4000 ded/$5000 00P) S1500 Deductible Single ($1500 ded/$3000 00P) Family ($3000 ded/$6000 001') Council Action: Total Premium City Contribution to Premium $536.87 $536.87 $1344.66 $813.75 $554.65 $466.94 $1389.14 $781.20 Information City Contribution to VEBA ** $130.00 $192.00 $130.00 $192.00 Total COR Contribution EE Contribution to Premium $666.87 $0.00 $1005.75 $530.91 $596.94 $87.71 $973.20 $607.94 00% Single ($2500 00P) $762.77 $517.14 $517.14 $245.63 Family ($5000 00P) $1909.59 $831.56 $831.56 $1078.03 is *Each plan member receives three free office visits (physician services). annually in addition to the preventive care visit. **Ile City's 2014 VEBA contribution includes the $4.30 monthly claims fee. Recommendation: Staff recommends that that Personnel Committee by motion recommend that the City Council approve the above - listed health insurance contributions for non -union employees. If approved, the monthly health insurance contributions will go into effect January 1, 2011.