Agenda - Council - 07/11/2000 - Laserfiche WebLink

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therefore be part of a larger pool of lives through an organization like PEIP or LOGIS. By becoming part of a larger pool, insurance carriers, reduce their risk and are typically able to offer rich plans ($10 copayment/100% hospitalization) at a lower premium. Finally the Labor Management Committee noted that employees like to have a choice of insurance carriers (HealthPartners and Preferred One) versus other insurance plans which would require all employees to use one carrier. Very often individuals and families establish relationships with their doctors or clinics and it is difficult to force employees to switch if their doctor is not represented in the carrier's network. At the request of the Labor Management Committee, Scan Byrne with Marsh Advantage America (administrators for PEIP) and Bonnie Torgersen with the Minnesota Department of Employee Relations came out and conducted two employee information programs. Following the programs, the Labor Management Committee asked employees to complete a brief, non-binding survey where they indicated their preference of health plans with various levels of copayments and hospitalization coverage. Based on employee responses, the Labor Management Committee is recommending remaining with the existing PEIP plan design of $10 copayments/100% hospitalization. Staff Recommendation: Based on the consensus of the Labor Management Committee, Staff is recommending that City Council give authorization to enter into a two year contract with PEIP effective September 1, 2000. The premium increase for the first year will be 10% on the $10 copayment/100% hospitalization plan. Committee Action: Motion to recommend that City Council give authorization to enter into a two year contract with PEIP effective September 1, 2000. Reviewed by: City Administrator Assistant City Administrator Finance Officer PC: 7/11/00 I I I I I I I I I i I I I I ! I