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have 14 former employees who are on the City’s health plan through COBRA. 32 33 The City of Roseville’s contract with NJPA for employee health insurance through 34 Health Partners will renew on January 1, 2013. The initial renewal rate was 4.97% 35 and the final negotiated renewal was a 2.33% overall increase. However, because each 36 plan within Roseville’ structure has a different claims experience with the self-insured, 37 the actual increases will vary some within the overall 2.33% increase. The $2,000 38 deductible plan will have a 4.42% increase, the $1,000 deductible plan will have a 39 2.52% increase and the $2,500 deductible will get a .52% decrease. 40 41 The plans offset each other. The $2,000 plan that had a 115% premiums to claims ratio 42 would have had a 35% increase and the $2,500 plan that had a 14.5% premiums to 43 claims ratio would have had a 50% decrease. Any way you look at it, this increase is 44 substantially better than in years past and better than the NJPA trend of 4.5% and the 45 national trend of approximately 7.5% increase. Staff has continued to show a change in 46 behaviors, and claims have shown great improvement over the past four years. 47 48 Last year the City conducted a comparison study and found that comparable cities with 49 high deductible plans actually had a bit lower out of pocket maximums than Roseville 50 but also had higher premiums and City contributions costs. Thus, the costs by the City 51 and the employee were similar to the average because comparable cities were paying 52 up front and the employee at Roseville was taking on more out of pocket risk in the 53 case of an event. 54 55 Attachment A is a historical summary of Roseville’s health insurance renewals and the design 56 changes that have been made. The City’s contribution increase is not included because there has 57 not been a method that has consistently been used, such as percentage of premium increase or set 58 dollar increase covered by the City. Therefore there is no way to consistently lay this out 59 historically because there have been too many variables each year in the budgeting decision 60 process. 61 62 Finally, Roseville is moving to a new online open enrollment system which our benefits 63 broker Financial Concepts is paying for this year. Employee census and demographics 64 is being loaded to the system currently with the City’s contribution and final plans 65 information scheduled to be completed by the end of this week. System testing will be 66 conducted the final two weeks in October and full roll out to all staff will occur on 67 th November 5. 68 69 City Contributions Background and Recommendations: 70 71 Historically we have maintained a philosophy of paying 100% of the premium for 72 medical and dental insurance for the single plan. This also remains the trend in the 73 marketplace, although the market continues to move away from paying 100% for rich 74 coverage plans (as Roseville has already done). 75 76 In 2004 the City Council began moving to a more equal contribution per employee, 77 regardless of the employee’s family status and lifestyle choices, as supported by an 78 employee survey done that year. Strides toward equal contribution halted in 2008 due 79 Page 2 of 4