Laserfiche WebLink
<br />. <br /> <br />. <br /> <br />. <br /> <br />~ <br />/],\~HILLS <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />October 26, 2005 <br /> <br />Agenda Item 6.B. <br /> <br />TO: <br /> <br />Honorable Mayor and City Council Members <br /> <br />FROM: <br /> <br />Michelle A. Wolfe, City Administrator 0 <br />Schawn P. Johnson, Assistant to the City Adminislrator S ~ <br /> <br />SUBJECT: <br /> <br />Motion of Approve Health Insurance Policy Changes for Non-Union City <br />Staff Members <br /> <br />Backl!round <br /> <br />Over the past two months, representatives from Financial Concepts, Inc. and City staff have been <br />revicwing the renewal ratcs for the City's employee health insurance through thc Lakes Country <br />Service Cooperative. According to the 2006 rate proposals, the City would expericnce a 20% <br />increase in premiums for 2006 if we continued with our current health insurance plan. In order <br />to offset Ihe 20% rate increase, City staff is recommending a change to a slightly more <br />inexpensive plan. The recommended plan would result in a maximum out of pocket expensc of <br />$1,000 per person and $2,000 per family. The primary difference between the City's existing <br />plan and the proposed plan is that employees would be responsible for 20% (not to exceed the <br />out of pocket maximums) of the costs associated with inpatient or outpatient services. The <br />recommended change in policy would result in a 10% increase in health care premiums for the <br />2006 fiscal year. <br /> <br />A second significant change in the proposed health insurance policy through Blue Cross Blue <br />Shield of Minnesota would be the cost for prescription medications. Employees would be <br />responsihle for a $15.00 prescription drug co-payor 25% of the medication cost, whichever is <br />more inexpensive for the consumer. Our current medical plan covers 80% of the prescription <br />drug cost. The consumer is currently responsible for 20% of the prcscription drug cost. <br /> <br />At Ihe October l7'h work session meeting, the question was raised whcther or not prescription <br />drug costs would be counted towards the $1,000 per person or $2,000 per family out of pocket <br />maximum. Blue Cross/Blue Shield of Minnesola reported that prescription drug costs cannot be <br />counted toward the inpatient/outpatient maximum for single or family coverage under this plan. <br /> <br />\\MeITo-inctus\ArdenHills\Admin\^ssistant City Administr.ator\Memo's and Letters\2005\Approval of200611ealth <br />Insurance Policy-Oct 28, 2005.DOC <br />