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Department Approval Item Description l�'�, Jy REQUEST FOR COUNCIL ACTION 2010 Benefits Contribution Incentive INTRODUCTION AND BACKGROUND: Date: 4/27/09 Item No.: 12.a City Manager Approval � / Through benefits changes toward consumer driven health care plans and the City's Wellness program, we have provided both awareness and opportunities for healthier and happier employees. The committees believe the next step is continued education and a focus on preventative care. During the January Senefits and Wellness Committee meetings the teams looked at 2008 accomplishments and future goals. Members felt the changes incorporated into the 2009 benefits package provided a solid foundation for choice and a potential change in employee benefits use and behavior. The teams believe that improving employee wellness advances the long-range goal of increasing the health and happiness of staff and minimizes health insurance rate increases. We've seen a slight decline in claims over the last year and thus believe our programs are beginning to work. In 2008, approximately 30% of Roseville employees saw their physicians for a wellness check, whereas the national average is closer to 80%. The members feel that Roseville's poor participation in preventative checkups is one reason that claims have been so high, which resulted in higher rate increases. To achieve the goal of improving employee health and minimizing insurance costs, the Senefits Committee ( in agreement with the Wellness Committee) feels the next step is to provide greater incentives to get employees to complete health assessment surveys and see their doctor for a wellness exam. Sy following these initiatives, employees will be better informed about their health risks and, with the help of their doctor, may identify health problems at an early stage when they may be correctable, better managed, or less expensive to treat. Therefore, Management concurs with the Senefits Committee and recommends directing a larger share of the Council-approved benefits contribution to employees who have completed certain wellness oriented initiatives prior to the beginning of the 2010 health insurance year. The Committee believes that $10 per month would be enough incentive to motivate employees to participate. This distribution will be added to all benefit-eligible employees who participate showing the proper documentation during the benefits enrollment period for 2010. Page 1 of 2