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Health Partners will renew on January 1, 2015. The initial renewal rate came in just 34 under a 4% increase, which was negotiated down to an increase of 1% for 35 administrative costs. 36 37 In 2012 the City conducted a comparison study and found that comparable cities with 38 high deductible plans actually had a bit lower out of pocket maximums than Roseville 39 but also had higher premiums and City contributions costs. Thus, the costs by the City 40 and the employee were similar to the average because comparable cities were paying up 41 front and the employee at Roseville was taking on more out of pocket risk in the case of 42 an event. 43 44 Staff is diligently working to load data and set up formulas and coding so that the HRIS 45 system may be utilized for web-based enrollment at this year’s open enrollment. We 46 anticipate open enrollment to begin in early November providing all renewal and 47 contribution information for 2015 is loaded in the next two weeks so that system testing 48 and auditing can be done prior to November first. 49 50 City Contributions Background and Recommendations: 51 52 Historically we have maintained a philosophy of paying 100% of the premium for 53 medical and dental insurance for the single plan. This also remains the trend in the 54 marketplace, although the market continues to move away from the rich coverage co- 55 pay plans (as Roseville has already done). 56 57 In 2010 Council approved implementation of a Benefits Contribution Incentive that has 58 worked very well and provides the full cafeteria dollar amount only to those benefit 59 eligible employees who participated in a confidential health risk assessment, and a 60 preventive care physical with a blood pressure check. If staff does not participate in 61 these wellness items they receive $40 less per month in their cafeteria amount. 62 63 With the 2015 plan designs remaining constant with the exception of the $100 increase 64 in the deductible on the high deductible plan and the premiums increasing by 1% 65 across the board, staff recommends City contribution increases to keep the employee 66 whole and as incentive to staff who are participating and the driving force for keeping 67 claims and thus renewal costs low. The increases to the 2015 Cafeteria Contribution 68 levels with these recommendations would be as follows: 69 70 Opt Out: $490 (NO increase) 71 72 Those on the $1,000 Deductible Plans would receive: 73 Single: $647 (increase of $11) 74 Single + 1: $767 (increase of $11) 75 Family: $983 (increase of $11) 76 77 Those on the $2,000 or $2,500 Deductible Plan would receive: 78 Single: $757 (increase of $11) 79 Single + 1: $867 (increase of $11) 80 Family: $1,058 (increase of $11) 81 82 Page 2 of 3