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<br />.. - <br /> CITY OF ARDEN HILLS <br />. MEMORANDUM <br /> DATE: January 2, 1998 <br /> TO: M,yo, .,d C;~ Co",,;' @ <br /> FROM: Brian Fritsinger, City Administrato <br /> SUBJECT: 1998 Pay Plan - Insurance Premiums <br /> Requested Action <br /> The City Council is asked to consideT an increase in monthly insurance contributions for January, <br /> 1998. <br /> Background <br /> In 1997, the City provided all employees (union and non-union) with $310 per month to be <br /> contributed towards the monthly insurance premiums, The monthly insurance pTemiums paid by <br /> employees include health, dental, life, and short-term disability, <br /> As I indicated in my previous correspondence with the City Council, the City received <br />. significant increases in both its health and dental coverages for non-union employees, Health <br /> insurance increases fOT 1998 aTe 24.2% and dental insurance premiums increased 20.5%, The <br /> City is currently covered through Medica for health, and American Medical Security for dental <br /> mSUTance, <br /> What Did the City Budget for Employee Insurance in 1998? <br /> The City Council has budgeted for each employee to Teceive $320 per month in 1998, In the <br /> case of single employees, the City does not utilize the full $320 per month, The total amount <br /> budgeted for 1998 for non-bargaining unit employees is $53,760, OT $4,480/month, <br /> What is the Cost to Each Employee for Insurance? <br /> For non-union employees, the total cost of insurance varies for those with Family or Single <br /> coverage, The current health insurance cost is driven by age and family status, Dental insurance <br /> costs vary only by family status. The approximate average monthly cost in 1998, including <br /> health, dental, basic life and short-term disability, for Single coverage employees is $191,20. <br /> The approximate average monthly cost for Family coverage is $636,60, These costs assume the <br /> City will continue its coverage with Medica and American Medical Security. <br /> For all I.U.O,E, Local #49 employees, the total cost for health and dental insurance is $325.00; <br /> $10,000 of basic life and short-term disability is an additional $13.10, for a total of$338.10. The <br /> contract settled with the Local #49 for 1998 includes an incTease to $320 per month in <br /> contributions, There is no incTease in monthly premiums for the Local #49, The net, out-of- <br />. pocket cost for all union employees, both married and single, for the basic insuTance coverages in <br />