Agenda - Council - 12/18/2001 - Laserfiche WebLink

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industry and therefore knows the fight questions to ask, what kind of information is needed on a quarterly or annual basis, and can help dried the City in its efforts to look for quality and economical health insurance. The average fee associated with having an agent is two percent of the total premiums paid. Using the 19.5 percent increase in premiums and assuming employee participation was to remain the same as it is currently, a projected agent fee for 2002 would be about $3,254 annually or roughly $271 monthly. Because of their recent work on the Benefit Review Analysis and their thorough understanding of the City's current benefits situation, staff recommended T.C. Field & Company become the City's agent and represent the City's interests in dealing with PEIP. Councilmember Hendriksen inquired as to how many employees currently participate. Human Resources Manager He, la replied approximately 25 employees. Mayor Gamec stated that.~t appearS3~at the answer is to ~ and increase employee pa~icipation. Councilmember zi~e~an if~ the Co~cil ageed that eliminating the $290 will improve the situation. Mayor Gamec replied yes. Human Resources Manager Heryla that that issue is tied together with union negotiations. Motion by Mayor Gamec, seconded b Zimmerman, to recommend that the City Council approve a health insurance contract ~. with~:~P~EIP for 2002-2003 with a contract . . . ~ ,, ~ . addendum h~ghhghtmg a no penalty clause fd~ earl~ithg~awal. This renewal would be for the same level of benefit w~th the same ehg~bih~: as 6~ntty stands, and any changes would have to come back to Council prior to belr~g~-:appro//~, ~. Motion carried. Voting Yes: Mayor Gamec, Councilmem~mmerman, Anderson, Hendnksen, and Kurak. Voting No. None. Absent. None· ~ ~ Motion by Mayor Gamec, seconded by Councilmember Ari'derson, to recommend that the City Council retain T.C. Field & Company as the City of Ramsey's agent to represent the City's interests in dealing with PEIP at a fee not to exceed two percent of total insurance premiums. Further discussion: Councilmember Hendriksen stated that if the lack of information provided by PIEP is keeping the City from receiving other quotes, then it appears that their ability to produce the information is for a self interest. He inquired as to how they could break that cycle. Human Resources Manager Heryla replied that she did try and talk to the Vice President of PEIP regarding that very issue, but he was very non-committal. Councilmember Hendriksen inquired as to how PEIP could justify increasing the rates 19 percent. Human Resources Manager Heryla replied that PEIP claims to know the City has a 40 percent credibility factor in the pool, but supposedly they don't have the information to give the City. Personnel Committee/November 27, 2001 Page 3 of 6