11-24-14-WS - Laserfiche WebLink

Home Browse Search

Memo - City Council 2015 Budget and Tax Levy Discussions 6 Benefit History The City currently provides $699.61 per month per full-time employee for benefits (pro-rated for permanent part-time employees). In September of 2001, the City Council authorized all employees receive Benefit Parity effective October 1, 2001. This meant that every employee would receive the same benefit whether single or family coverage was taken and was the employee’s choice. Attached is the recommendation given at a worksession and the September 24, 2001 minutes when it was adopted. (Attachment B and C) Below is a chart which illustrates the costs of coverage to employees per month for medical and dental since 2004 and the City’s contribution amount. You will note that we offered a Co-Pay plan (BCBS Aware Gold) and to reduce our costs, we then tried a $300 deductible plan in 2007, and the High Deductible Plan with a HSA in 2008. Employees have had their choice of two plans since 2007 as Lakes Country Cooperative allowed this. Starting in 2009, the Council only allowed Benefit Parity if employees took the High Deductible Plan option to encouraged employees to move from the Co-Pay Plan to the High Deductible Plan. By 2013 all employees had switched to the High Deductible Plan and we discontinued the Co-Pay Plan and replaced it with another High Deductible Plan that had an embedded deductible amount for families which had a much higher deductible for both single and family. Dental insurance is through Health Partners and in 2008 we change from Single/Family to Single/Single plus One/Family which helped to lower those costs. All union employees are on the union plan for medical and dental and pay the same whether they have single or family coverage. $300 Deductible $300 Deductible Embedded Co-Pay Co-Pay $1,600 HD Plan $3,200 HD Plan $3,125 HD Plan $6,250 HD Plan Incr Incr Year Single Family Single Family Single Family %Union % 2004 365.90 807.89 12.25%600.00 9.09% 2005 433.43 953.07 18.46%650.00 8.33% 2006 473.96 1,040.88 9.35%700.00 7.69% 2007 507.54 1,114.35 469.54 1,032.85 7.08%750.00 7.14% *2008 531.21 1,152.15 466.21 1,013.15 4.66%820.00 9.33% *2009 553.11 1,213.40 485.61 1,068.90 4.12%850.00 3.66% *2010 560.38 1,231.12 492.38 1,085.12 1.31%905.00 6.47% #*2011 493.49 1,088.40 433.99 961.90 -11.94%922.00 1.88% *2012 511.31 1,127.31 449.81 996.31 3.61%942.00 2.17% 2013 471.68 1,044.37 418.68 930.37 4.86%962.00 2.12% 2014 473.16 1,048.74 420.16 934.74 0.31%1,012.00 5.20% 2015 No increase is planned in medical - dental is not in yet *Council mandated that parity benefit was only given to those that took HD options, none if Co-Pay option #Coop went out for bids and due to favorable history of claims reduced our rate All union employee pay same rate whether single or family All non-union employees are required to take, at a minimum, single dental and single medical insurance