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<br />10 Minutes <br /> <br />CASE #20: <br /> <br />PUR<:mSE OF GroJP HEALTH INroRANCE <br />FOR CITY OF RAMSEY EMPLOYEES <br />By: Judy Thul, Personnel Coordinator <br /> <br />Background: <br /> <br />The City currently purchases health insurance through LOGIS. A group of <br />instrumentalities formed as a result of \t,lithdrawing from the Hennepin County <br />group plan. 'Ihe contract with r..a:;IS and current health care providers (PHP, <br />Group Health, and Med Center) expires December 31, 1988. <br /> <br />Enclosed (attachment 1) is a list of these instrumentalities. <br /> <br />The following is a review of the options we have and cormnents: <br /> <br />a) . Remain with the L03IS Group - As of June 1, 1988, r..a:;IS has appointed <br />DCA as agent-of-record to provide consultive services to represent <br />L03IS in negotiations with health care providers for new contract <br />effective January 1, 1989 (see attachment 2). 'Ihe DCA representative <br />indicated at the LOGIS meeting of June 14, 1988 his intention of <br />attempting to maintain current health care providers and current <br />prenium rates (10% maximum increase). <br /> <br />b) Join the Anoka County Group - The City has contacted Anoka County <br />indicating a possible interest in joining them for the purchase of <br />health insurance. The effective date of the new contract for Anoka <br />County is September 1, 1988. 'Ihe premium rates have been determined <br />(see attachment 3). Approval of current health care providers and <br />approval to join group as of January 1, 1989 is pending. The <br />arrangement with Anoka County would be similar to that of Hennepin <br />County. <br /> <br />c) Purchase Health Care Coverage for the City of Ramsey Only - For the <br />City to consider this option would mean hiring a consultant to <br />negotiate contracts with health care providers as well as ongoing <br />administrative services. <br /> <br />Cbservations: <br /> <br />1) T'ne City currently purchases life insurance through the Hennepin County <br />group. The contract expiration date is December 31, 1989. One year from <br />now the City will be going through a similar process in purchasing life <br />insurance for City of Ramsey employees. Most of the instrumentalities in <br />the LCGIS group purchase life insurance through Hennepin County as well. <br /> <br />2) It appears in reviewing attachment 2 that DCA (agent-of-record ux;rs group) <br />will be providing a higher level of administrative services than was <br />provided by Hennepin County. With the recent changes in legislation and <br />increasing cost of health care and insurance, an increase of aciministrative <br />services is necessary. <br /> <br /> <br />3) The LCGIS group has set a date of July 15, 1988 for current members to <br />remain or ...1ithdrCM fran the group to negotiate premium rates. They will be <br />requesting census data fran member cities on employees currently enrolled. <br /> <br />1"8 <br />