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City Contributions Background and Recommendations: We have consistently over the years maintained a philosophy of paying 100% of the premium for medical and dental insurance for the single plan. This has also been the trend ii� the Stanton 5 group although the marketplace continues to move away from paying for 100% coverage plans. Staff recommends following this trend as well as continuing to malce small strides toward more equalized contributions. The last several years the City has managed to maintain approximately the same out of pocket costs for the families by absorbing the majority of the increases and by adding the single plus one tier in 2004; those individuals actually saw a decrease in their out of pocket costs. In 2004 Council began moving to a more equal contribution per employee, regardless of the employee's family status and lifestyle choices. Some very small steps have been talc�n toward equalization, but this has been quite limited due to the enormous increases the City has faced over the past few years. It was also found through a survey conducted in 2004 that the majority of staff participating in the survey wanted equalization as well. Therefore, the committee in loalcizag globally at current plan design as well as future struggles to iceep premiums affordable yet minimize potential deductible risks as much as possible the staff recommends approving the following 2008 monthly cafeteria contribution levels: 9 Opt Out: $3 80 moving toward equalization, 9 With the out of pocket premium expensive remaining relatively constant for 2008 the staff recarnmends moving toward consumer driven health and big picture future planning thus providing greater cafeteria dollars to be used in the I�I�A for those willing to take more risk. 9 Those on the $1,000 Deductible Plan would receive: Single: $495 ■ Single + 1: $610 ■ Family: $800 9 Those on the $2,500 Deductible Plan would receive: ■ Single: $605 ■ Single + 1: $710 Family: $875 9 Monthly contributions deposited into a�Tealth Reimbursement Account as follows: $1,000 Deductible Plan Monthly BRA Deposit: � Single $83 (increase of $21) � Siilgle + 1 $90 (increase of $20) • Family $70 (increase of $20)