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36 After reviewing the information with our employee Benefits Committee, staff is recommending that 37 we continue with our current pool – Sourcewell. This bid came in at a very competitive 0% increase 38 for the first year along with the lowest rate cap of 12% for the second year. In addition, it did not 39 require any changes to our insurance plans or benefits for the 2-year contract. Staff feels this is the 40 most reasonable, cost effective, and beneficial for the city as well as employees. (It should be noted 41 that a 0% increase in benefits has been included in the City Manager’s recommended budget 42 presented to the City Council on August 10, 2020.) 43 44 Basic & Voluntary Life,AD&D and Long-term DisabilityInsurance 45 Our current provider since 2016 for the City’s basic, voluntary, AD&D and Long-term disability 46 insurance is Cigna. Two carriers bid on our proposal for Basic, Voluntary, AD&D and Long-term 47 Disability insurance – Cigna (current provider) and Standard. TheRFP resulted in our current carrier 48 bidding a lower rate for our Life Insurance than we are currently paying, thereby resulting in 49 approximately a 33% reduction in cost. Although Standard’s bid for Life insurance was lower, the time 50 and work it would take to change carriers, particularly as we are in the midst of a migration to a new 51 benefit administration system would have delayed the implementation and resulted in significant 52 additional work that would not have off-set the cost savings. Staff is recommending that we stay with 53 our current provider- Cigna. 54 55 City Cafeteria Contributions Background and Recommendations: 56 Historically, as other municipalities have done, the City has paid 100% of the premium for medical 57 insurance for the single plan. This does not mean that the single employee has free coverage. Employees 58 are still responsible for fulfilling their deducible as well as their out-of-pocket costs which could amount 59 to as much as $5,600 for a single and $11,200 for a family depending on the plan they choose. 60 61 Since2010, the City has utilized a Benefits Contribution Incentive that has worked very well and 62 provides the full cafeteria dollar amount only to those benefit eligible employees who participate in a 63 confidential health risk assessment, and a preventive care physical with a blood pressure check. If an 64 employee does not participate in these wellness items they receive $40 less per month in their cafeteria 65 amount. 66 67 Staff recommends the City contribution to the 2021 Cafeteria Plan for full-time employees remain the 68 same as the previous year with no additional cost. As there were no premium increases due to the bids the 69 city received, the city and employees will not see any additional cost. 70 2021 Cafeteria Plans *with wellness incentive 2020 Cafeteria 2020 Cafeteria Increase in Cafeteria contribution Contribution amount in $Dollars Opt Out $510 $510 $0 $2000 Deductible Single $878 $878 $0 Single +1 $1,058 $1,058$0 Family $1,355 $1,355$0 $2800 Deductible Single $872 $872 $0 Single +1 $1,070 $1,070$0 Family $1,354 $1,354$0 Page 2 of 3