CCP 01-05-1998 - Laserfiche WebLink

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- - Memorandum - 1998 Pay Plan - Insurance Premiums Page Two . January 2, 1998 1998 will be $18,10. How Much ofthe Budgeted Monthlv Insurance Contribution Goes Unused? Of the $4,480 contribution budgeted in 1998 for non-bargaining unit employees, actual January, 1998 costs for eight (8) of the fourteen (14) employees is $1,619.48, This leaves $940,52 of the monthly budget unspent/available, What Is the Status of Health Covera!!e for 1998? Staff has solicited proposals, or investigated coverage, from Health Partners, Blue Cross/Blue Shield, the State of Minnesota (PEIP), League of Minnesota Cities, Ramsey County, and several other options, Due to the delays in receiving quotes for coverage and the late notice on renewal rates from Medica, staff elected to continue coverage with Medica for at lease the month of January. While every employee will experience a rate increase, the decision to continue with medica has a signiticant impact on seveTal employees. In some cases, this will increase the out of pocket expense to employees by up to $212/month, How is Staff Proceeding? The City Council has discussed insurance coverages in 1996, and most recently at its November . W orksession. Staff is continuing to evaluate the insurance/benefit package currently offered by the City. Staff intends to have a recommendation on any changes to its health and dental coverage available for discussion on January 21, 1997. In oTder to facilitate this work, howeveT, stair would suggest the following basic changes to our benefit progTam. These include: 1. The City pay the full cost of short-term disability (STD), This is currently $9,OO/month per employee fOT $200/week coverage, 2. The City pay the full cost of long-term disability (L TD), This is not currently offered by the City, Costs for such coverage are currently under investigation, " The City pay the full cost of a basic life insurance package, This is currently 0, approximately $4. 1 O/month per employee for $10,000 in death benefits, How Can the City Assist in the Short Term? The City COlillcil may wish to utilize a portion of the remaining unused, budgeted insurance contribution to further Teduce the affect of the incTease being experienced, If the City Council were to do this, using $930 of the remaining unused premium amount of $940,52 would increase the City's monthly contTibution for the month of January to $475. This, combined with the City offering to pay for basic STD, L TD, and Life Insurance, would significantly assist those experiencing huge increases, This appToach would only be utilized until such time that the City Council formally acts on changes to the overall benefit package, .