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<br /> - <br /> .. , , <br /> Memorandum, Employee Benefit Program . <br /> Page Two <br /> March 27,1998 <br /> 1. Dollar Level of Benefit <br /> This is the most common approach in public sector and is consistent with Arden <br /> Hills historic approach. In this case, the City would simply define a specific level <br /> of dollars to be available for health and dental insurance. The employee then has <br /> the option to determine whether or not he/she wishes to carry single or family <br /> coverage. <br /> 2_ Percentage of Contribution <br /> This approach is slightly different in that the City would clarify that each <br /> employee will be provided single dental and single health at the cost of the City. <br /> It would then determine that an employee should not be expected to pay more <br /> than a certain percentage of the cost for either family dental or family health. (As <br /> an example. the City currently pays approximately 55% of the cost towards family <br /> coverage. ) <br /> The significant difference is that, in one case, the employee has the decision making <br /> responsibility on how to use the dollar amount, and in the other, the City is clearly defining the <br /> level of benefit it is willing to provide employees. <br /> Optional Coverage Protlosals . <br /> Staff has identified a proposal for Council consideration under each of these approaches. <br /> I- Dollar Level of Benefit <br /> The City provide each employee with single health insurance coverage and single <br /> dental insurance coverage, with a total benefit not to exceed $315 for these two <br /> benefits. The employee may apply any remaining funds only toward family <br /> health insurance and/or family dental insurance coverage. (This is consistent with <br /> Arden Hills' existing structure and is based upon approximately 55% of cost to <br /> provide the insurance to those interested in family coverage.) <br /> 2. Percentage of Contribution <br /> The City will provide each employee with single health and single dental <br /> insurance coverage. In addition, the City will contribute 55% of the cost of <br /> family coverage for those employees electing family coverage. <br /> What is the Budget Impact of Either Ontion in 1998? <br /> In 1998, the result for either approach will be well within the adopted budget The adopted 1998 <br /> budget for non-union employee insurance contributions (based on $320 per employee) was <br /> $4,480. The total cost for this item, based upon either a set dollar contribution of$3l5 or 55% of <br /> the cost of family insurance, is projected at $3,905.72 (an average of$278.98 per month). . <br />