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kvAseya7hE Request for Council Action Date* 8/18/03 Item Number,@ I. D. TI ep artm ent Approval Manager Approval Agenda Section Organizational Business Item Description. P-004 Health Insurance Tier Options & City Cafete-flia -Con'tributions Background: During the July 28th Council meeting staff presented} at the Council's request, the possibility of adding a ` {single plus 1 tier to the current Health insurance plan. The following is a summary of the impact of that option assuming City contributions would remain consistent: This change in contribution rates would cost the City an additional $798.18 per month for the City in contributio dollars, assuming continuing to contribute 70% of Choice 1 I ( 100 %) plan. This change would save these 18 active employees that move to the Single plus 1 tier $ 57.68 per month on the choicc I I plan and .69 on the choice 14 plan. This change would cost those 49 active employees that stay on the family plan 28.64 per month on the choice I I plan and 11.84 on the choice 14 plan. This change would save 6 extend ee /retirees that would move to the Single plus tier $194.41 per month on the choice I 1 plan. This change would cost I extendce /retiree that would stay on the family plan 76.52 per month on the choice 14 plan. In conclusion, then, this Council-requested proposal to look at the impact of adding a "single + one" tier would have direct additional budget cost to the City, would help 24 plan members, and would hurt 50 plan members. At the conclusion of that presentation on 7/28, Council directed staff to' 1. Look at how many tiers various vendors could offer 2. Get gtiotes based on those tiers 3, Design a fixed City contribution to a cafeteria -style benefit plan, making no additional contribution to employees with families. w Memo provides the additional information Council requested on 7/28.