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-296- <br /> <br />Fiscal Issues/Budgetary Effect: <br /> <br />The estimated cost of the agreed upon health insurance contribution is $ 197,268. The current <br />budget for this cost is $ 191,198. A transfer from Council contingency will be needed to cover <br />the additional cost. <br /> <br />The current budget was established in advance of receiving our premium quotes from the <br />administrator of our plan the Minnesota Public Employees Insurance Program. The quotes <br />received after budget development increased premiums by an average of 29 %, significantly more <br />than in past years. To reduce the overall cost to employees and the City we mutually agreed to <br />provide Major Medical coverage as a lower cost option to employees and we have increased the <br />co-pay for office visits from $10.00 to $15.00. Both parties are committed to reviewing our <br />current plan design, plan utilization and alternative providers to assure that this important benefit <br />is being provided in the most cost effective manner. <br /> <br />Committee Recommendation: <br /> <br />Recommend that City Council approve the 2003 city contribution toward the cost of Health <br />Insurance Benefits for members of AFSCME and LELS bargaining units. It is also recommended <br />the City Council approved a contingency transfer not to exceed $8,000 to cover the cost of this <br />benefit. Finally, it is recommended that all other eligible employees receive the same employer <br />contribution. <br /> <br />COuncil Action: <br /> <br />Adopt resolution approving health insurance contribution toward cost of employee health <br />insurance and a contingency transfer not to exceed $8,000 to cover the cost of the benefit. <br /> <br />Reviewed By: <br /> <br />City Administrator <br />Assistant to the City Administrator <br /> <br />PC: 01/14/2003 <br /> <br /> <br />