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Page 2 of 2 <br /> <br />The City received three quotes for insurance renewal with the least expensive being Health <br />Partners; staff is also including an option to move all of staff onto the union’s plan. Below is a <br />summary of the potential cost impacts associated with the different options (these cost impacts also <br />include Dental Insurance which has a 4.1% increase). <br /> <br /> <br />Attached are the breakdown of costs and contributions for each of the proposed options. To <br />determine City contribution amounts for the “PEIP Renewal” option, staff used the breakdown we <br />currently have in place. It should be noted that under the PEIP renewal option, the City share of the <br />non-union premium is high enough that the union employees would not have an employee share. <br /> <br />For the Health Partners option, it is similar in that single employees are covered for health and <br />dental at 100% and families pay a flat fee of either $300 or $364 depending on the dental option <br />they choose. For the 49er’s plan option, a proposed flat rate of $250 across the board for each <br />employee. <br /> <br />Lastly, if Health Partners is the option selected, another cost savings measure would be to allow <br />employees that have coverage via a spouse, the option to waive City coverage. This would save the <br />City the cost of the premium for that particular employee; it should be noted that other cities that <br />offer this option may pay the employee a monthly lump sum (i.e. $300). The savings to the City is <br />the difference between the lump sum and what the premium would have been. <br /> <br />Budget Impact <br /> <br />Any of the options presented will have a budget increase for 2023, the current draft budget for <br />2023 had a 6.5 percent increase over 2022 for health insurance and a 3.0 percent increase for dental <br />insurance. Once direction is given, staff can work the numbers into the budget for discussion in <br />November. <br /> <br />Attachment <br /> <br />Attachment A: Existing PEIP Information <br />Attachment B: PEIP Renewal Information <br />Attachment C: Health Partners with HSA Contribution Information <br />Attachment D: Union (49er’s) Plan Information <br />Attachment E: Health Partners Explanation of Benefits <br />Attachment F: PEIP Explanation of Benefits <br />Plan Type Monthly Basis Annual Difference to PEIP $ Increase Over 2022 % Increase Over 2022 <br />PEIP Renewal 31,833 381,993 0 91,307 31% <br />Health Partners 28,226 338,715 (43,278) 48,029 17% <br />49'ers Plan 31,592 379,104 (2,889) 88,418 30% <br />2022 PEIP 24,224 290,686.08 <br />Summary of City Cost