2003_0728_packet - Laserfiche WebLink

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Rl&%�S�►�� Request for Council Action Item Number** IX. A. Department Approval Manager Approval Agenda Section organizational Business Item Description: III liq Background: Employees are eligible for pro -rated health benefits based on their level of full -time status beginning if they work a minimum of 20 hours per gook; there are 161 total benefit eligible employees. The City of Roseville has a contract with Preferred One for employee health insurance. Currently the City offers the two (2) tier options, single or family, for the employees and extendees of the plan to choose from. A retiree group has requested, through a Council directive to staff, that research be conducted and a decision be made with regard to the possibility of adding an additional single Plus one tier to our current Preferred One plan. This addition would make it potable for two people to be on the one plus one option rather than having to purchase the .ore costly family plan. It should be noted here that extendeeslretirees pay 100% of the premium Annually, staff and the Stanton Group monitors the metropolitan region to compare Roseville premiums and benefits options to other communities. Of the eleven cities surveyed, the 2003 proposed plan with Preferred One would place Roseville's health insurance rates as the second lowest. Therefore, the rates are attractive, all things considered. with regard to plan tier options the 2003 Stanton V group shows that of the 24 Cities in the group that participated in the survey, 12 have a single talus one tier option. I have included the Stanton survey for your reference. Policy Implications: Currently, 140 employees and extendees /retirees have chosen to receive health insurance through the City's program: comprised of 66 single and 74 family contracts. If the single plus one tier option were to be added it is anticipated that 24 under of the current family plan would opt to move to the single talus one option of which 18 are active employees. In order to establish greater equity in City options and contribution amounts, the City would also then need to establish another contribution lager for this new group. Financial Implications: The total cost to the City for health insurance prermums, is budgeted not exceed $933,597 for 2003, Jhe City is ticipating the renewal cap increase of 12% for the 2004 calendar year thus bringing the budget to $1,045,,629. Tle will know the exact cast after Open Enrollment in November when employees choose the option they want. The addition of the single plus one option Will increase the premium for the family rate. The single rates will not