Agenda - Council - 08/08/2023 - Laserfiche WebLink

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CC Regular Session Meeting Date: Primary Strategic Plan Initiative: 5. 11. 08/08/2023 Identify and implement operational efficiencies, cost savings and additional funding sources. Information Title Adopt Resolution 23-181 Approving a 2-year Extension of the City's Health Insurance Renewal with HealthPartners for 2025-2026. Purpose/Background: The City of Ramsey's employee health insurance benefits have been part of the Local Government Information Systems (LOGIS) consortium since 2012. When the pool last went out for bid, the agreement with HealthPartners was for 2022-2024. The LOGIS Committee and HealthPartners have agreed to another 2 years which includes pool rate caps of 9.5% in 2025 and 9.5% in 2026. Given the inflationary increases seen across the economy and particularly in the healthcare industry, which tends to have increases greater than other goods and services, the Committee felt that single digit increases for two more years is beneficial to the pool members and provides for the ability to complete future union negotiations. The additional two years will bring us to the end of the 5-year contract duration allowed under state statute, when the pool will market the plan for coverage beginning January 1, 2027. To ensure stability, all organizations will need to agree to remain in the pool for the next contract cycle through December 31, 2026. The reason for this is that if an organization decides they want to leave the pool before the end of the contract, HealthPartners has the right to adjust rates for the remaining pool members. The City's history with LOGIS has proven to be highly beneficial. There were just two years (2015 and 2016) where the City outperformed the pool, but the other 9 years the experience of the pool has helped the City. Plan Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 City of Ramsey Total Plan LOGIS Plan Loss Ratio Loss Ratio 155.7% 149.9% 154.1% 55.7% 58.1% 243.0% 253.6% 198.7% 190.3% 162.6% 137.5% 107.1% 110.3% 107.0% 105.4% 99.6% 129.9% 120.6% 119.8% 100.4% 109.9% 113.9%