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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — OCTOBER 24, 2022 2 City Administrator Perrault discussed some of the costs and deductible differences between the 49er family -only plan and the PEIP plan. He noted that previously, the Council was not interested in the 49er plan for non -union employees so he did not prepare that information for tonight's meeting. City Administrator Perrault provided a brief summary of the PEIP plan, which includes the choice of three different carriers (HP, B1ueCross/Blue Shield, and Preferred One). He stated that employees select the carrier they want and that coverage is based on tiers, depending on the carrier that is selected and the location of the medical clinic. Councilmember Radziej asked for information about the City's HSA contribution. City Administrator Perrault explained that currently PEIP offers three levels of plans that employees can choose from: an HSA plan, a value plan, and a high value plan. He noted that the HSA plan includes a monthly City contribution, but that all employees do receive the same benefit contribution amount as a whole. A discussion ensued regarding review of the current PEIP premium information provided in the table within the packet. Councilmember Radziej asked if under PEIP, are all employees required to participate in the City's medical coverage plan, and would HP require the same. He also asked if employees had been asked if they would potentially waive coverage if they could. City Administrator Perrault stated that currently PEIP does require a certain percentage of employees participate, and so employees were not currently eligible to opt out. He noted that this would not be the case with the HP coverage and that an opt out option would exist under that plan. A discussion ensued about HP coverage. A discussion ensued about the process for City Council approval of the employee benefits medical contribution as it relates to the overall budget approval. City Administrator Perrault stated that it appears the Council came to a consensus about HP and asked if the Council was interested in providing the option for employees to opt out of the City's medical coverage plan and receive a cash contribution in lieu of coverage. A discussion ensued regarding aspects of opting out of medical coverage. Various examples were discussed pertaining to opt out amounts that could potentially be offered, based on Council direction. A discussion ensued regarding the premium amounts paid by the City currently based on information contained in the agenda packet. Councilmember Holden stated she would support offering the example as noted in Attachment C and offering a monthly amount to opt out of the City's coverage.