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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION – OCTOBER 13, 2014 8 Councilmember McClung stated that he could not support the single health care members paying nothing for their health insurance. He did not believe that this was realistic and thought every employee should be contributing something to the plan. City Administrator Klaers discussed the philosophy behind the City’s policy and benefits provided to single health care members. He commented that Arden Hills was not inconsistent with other municipalities on this topic. Councilmember Holden was not concerned with what other municipalities were doing. She explained that the health care industry was changing and for that reason, the City would need to reconsider its health care options. Councilmember Holmes was interested in how other cities managed their health care plans. Director of Finance and Administrative Services Iverson reported that this information would be included in the study. Councilmember Holden commented that she did not support paying $3,000 per year to employees that selected single health insurance. City Administrator Klaers asked if the Council would consider making a change for all future employees, as a policy change would impact the financial benefits of current employees. Councilmember Holden and Councilmember Holmes did not support this suggestion. Mayor Grant believed that health insurance should be viewed as a benefit and not as compensation. Director of Finance and Administrative Services Iverson reported that the City was trying to reduce its expenses for health insurance by selecting a plan with higher deductibles, while also reducing huge spikes in the budget when insurance costs rise. Councilmember Holden understood this to be the fact, but stated that the City was still paying a great deal for health care by supplementing people with funds in their health savings accounts. She recommended that the City put a cap on the funds going into HSA’s. She requested that staff provide the Council with additional information on health insurance policy options. Director of Finance and Administrative Services Iverson stated that open enrollment would begin November 1, 2014. Staff needs some answers to give employees for them to make their health care decision and choices. Administrator Klaers suggested putting a $2000 cap on City contributions to employee HSA accounts. Councilmember Holden agreed for now with the $2000 maximum to HSA accounts.