Agenda - Council - 11/10/1987 - Laserfiche WebLink

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Hinute$ C~g ~9: UPDATE 0~; STATUS FOR RENEWAL OF 1985 GROUP HE~T~ AND LIFE INSURANCE By: Noel Graczyk, Finance Officer Background: enro].lment period for employees so that changes in coverage or provider may be made. For the past several years the City has purchased group health and life insuranct as an invtrument~lity in conjunction with Hennepin County. Under this agreeme~.t for 1987, the City was a~le to allow employees to select either Group HealtL, Med Center, or PHF. On November 2, 1987 Hennepin Count}~ chose to discontinue the services of Med Center and PHP as the preferred providers (PP0's) for the C~unty's health insurance. Instead, the County chose Family Health Plan (FHP) as the PP0. Only about thirty percent of the doctors affiliated with ?BP are also with FHP; thus, any employees not covered by an FHP doctor in PHP or Mod CenLer will ha~.~ to change doctors or pay a large co-payment for using their current doctor outgide of the FHP network. This would mean that of the twenty-four employees with health insurance coverage with the City, eighteen, or 75% of City employees would have to change their insurance c~.verage. The instrumentalities with Hennepin County will be meeting November It, 1987 to review the stratus of maintaining coverage with c~rrent providers for the 1988 year. Information from this meeting will be presented at the Council meeting. The City of Ramsey may also be able to obtain insurance coverage with the current providers by joining the Anoka County Group. A draft of a joint powers agreement for such a relationship will also be pzvsented at the meeting. The ust of the Anoka County group would be based cn approval of the cerrent providers ~l!owing submit, sion of new members during the current year that began September 1, 1987. Observations: The City has the following options: (1) Remain with Hennepin County and change coverage for 75% of the City's employees; (2) Remain with the Hennepin County instrumentalities for health a~d life insurance coverage. The possibility of this will not be known until the meeting on November 10; (3) Purchase coverage with the Anoka County group; (4) Purchase coverage for the City without being a member of any group. ~ct all of these options are viable for the City. A summary of ~be options and the cost associated with the different groups will be presented. Recommendations: Council Action: To review the materials presented and to address any agreements that mgy need Council action to obtain insurance as of the Oanuary I, 1988 renewal date. Review Checklist: Chief of Po!ice Ki:~ance Of!ioof Public Mori:s ~Cuperintendent