11-05-18-SWS - Laserfiche WebLink

Home Browse Search

Page 2 of 4 Paid Time Off The PTO program is competitive at middle market. No changes are being recommended at this time. Life, Disability and Retirement For life insurance, the City paid coverage is $20,000. This is a little on the low side but within the $10,000 to $50,000 range. The City does pay for short and long term disability for employees. Employees are taxed on these amounts so benefits received are non-taxable. The City does offer a deferred compensation plan but this is all employee funded, no City contribution is made. No changes are being recommended at this time. Health and Dental For all jurisdictions surveyed, the single healthcare insurance premium was paid entirely by the City. Larger jurisdictions have for many years used a flat dollar value for benefits. This approach treats all employees alike, whether or not they have dependents. Typically, the amount provided by the city is short of what is required for family coverage but a single employee could use the remainder towards other premiums or deferred comp. Cities with HSA’s usually contribute a monthly amount to an employee’s savings account in addition to picking up a share of family coverage. Single coverage is normally provided at no cost to the employee. Family coverage is where the limits or target come into play. Cities are more likely to set a premium cap based on the lowest cost healthcare plan offered paired with an HSA contribution to arrive at a total number. It appears that a number in the range of $1,075 to $1,205 is what cities pay in 2018. The FPAC committee met on both 10/25/18 and 10/29/18 to review information on 2019 employee insurance benefits. The main focus was on health care. NFP (the city’s benefit consultant) provided information for renewing our current plan as well as options to change to Blue Cross Blue Shield, Medica, Preferred One and PEIP. After going through the information, the committee narrowed down its choices to renewing the current plan and PEIP and decided to focus on providing an HSA plan. The cost of the PEIP HSA plan is much lower than the current Health Partners plan. Some of the reasons for this are the more limited/restrictive care options available, having to get referrals to see specialists, the higher deductibles and higher max out of pocket maximums. The current breakdown of employee and city costs for health and dental care is as follows: The City currently pay 80% of the family premium for Union and Non-Union and also contributes an amount to employees with an HSA account. The committee wants to move away from a 2018 BREAKDOWN $1,650/year Total EE Total Employee Employer City HSA City Health Dental Premium Portion Portion Contribution Contribution Max out of Pocket Average of all ee's Single 629.56 45.97 675.53 - 675.53 137.50 813.03 2,000 per person Average of 2 ee's Family 1,378.71 45.97 1,424.68 321.71 1,102.97 137.50 1,240.47 2,000 per person/4,000 per family Union 1,240.00 Incl.1,240.00 248.00 992.00 - 992.00 3,000 per person/7,000 per family Premiums