Agenda - Council - 12/11/1990 - Laserfiche WebLink

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CASE HEALTH AND LIFE INSURANCE FOR 1991 BY: Kay McAioney, Personnel Coordinator Background: Throughout 1990, numerous health insurance plans were reviewed and information regarding these plans was shared with all employees. In early November, 1990, employees were polled as to their preference in plans. Approximately 70% of the employees responded, and of these, 65% preferred continuing health and life insurance under the LOGIS plan. At the November 8, 1990 Personnel Committee meeting, the various plans were discussed. The consensus of the Personnel Committee was that the City continue health and life insurance coverage under the LOGIS plan, and further that regular part-time employees for the City.of Ramsey would be benefit eligible with no cost participation on the part of the City. A 'Report from Personnel Committee' at the November 13, 1990 City Council meeting confirmed the recommendations of the Personnel Committee. Since that time, some new information regarding the approved changes by the LOGIS Board of Directors, dated March 1, 1990 has been received. A copy is attached. Due to these changes, if the coverage is extended to regular part-time employees, the City of Ramsey must contribute 50% to 75% (depending upon the carrier) of the insurance premium cost. As the City does not currently extend an insurance allowance to regular part-time employees, and the bargaining unit contracts do not provide for same, this change in LOGIS's policies would result in an additional cost to the City of $700 to $1300 per year, per regular part-time employee. In addition, if the City elects to extend this coverage, all regular part-time employees must be included in the plan - without regard to employee preference. The City currently has two options: Health and life insurance benefits for full-time (benefit-earning) employees only. Health and life insurance benefits for full-time and regular part-time employees with the City incurring at least 50% of the lowest single premium for regular part-time employees selecting Med Center or Group Health and 75% of the lowest single premium for regular part-time employees selecting Physician's Health Plan. Recommendation: As the City cannot offer health and life insurance benefits to regular part-time employees without participating in the cost, staff recommends the City approve 1991 health and life insurance with LOGIS for full-time (benefit-eaming) employees. Council Action: Motion to adopt/not adopt resolution//90-12- approving 1991 health and life insurance with LOGIS for its benefit earning employees. -or- Motion to adopt/not adopt resolution//90-12-__ approving 1991 health and life insurance wifl~ LOGIS for its benefit earning employees and its benefit eligible employees. Review Checklist: City Administrator Finance Officer Personnel Coordinator CC: 12/11/90