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1 claims in 2009 by the City. PEIP (the State Plan), and Slue Cross bid, but their rate increases <br />2 were even more than Medica, hence providing no real benefit. The City did receive a bid <br />3 from Health Partners which does provide a reason to switching providers. <br />5 Following the receipt of the renewal proposal from Medica and other vendor's staff shared <br />6 cost and coverage information with City staff through email, the intranet, and the Senefit's <br />7 Committee (a representative committee of city employees). The Senefit's Committee was <br />8 asked to provide feedback on the various bid options from the prospective of their respective <br />9 groups. Staff also worked with Medica and Slue Cross through Financial Concepts (our <br />10 benefit's broker) to find ways to ease the increase. Medica in the end was only able to offer a <br />11 13% increase with no rate cap in a second year. Slue Cross how ever was able to offer an <br />12 8.9% increase which impacts only one plan options and actually yields a very small decrease <br />13 in premium costs of the other two plans. However, the decrease in one plan is offset by an <br />14 industry mandated change which increases the out of pocket maximum substantially. <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />29 <br />30 <br />The Senefits Committee recommends the move to Health Partners during this economically <br />difficult time to provide staff with the most economically efficient options for health <br />insurance. Staff is showing signs a change in behaviors and claims have declined which <br />rewards staff and the City by a less than trend renewal for 2010. Continued education, <br />wellness, and action will again be the focus for the Senefits and the Wellness Committees in <br />2010. Open enrollment is scheduled to begin in early November. I have included the final <br />renewal worksheet (Exhibit A) for your review and comparison. <br />Cit,y Contributions Background and Recommendations: <br />We have consistently over the years maintained a philosophy of paying 100% of the <br />premium for medical and dental insurance for the single plan. This also remains the trend in <br />the Stanton 5 group although the marketplace continues to move away from paying for rich <br />coverage plans as Roseville has already done. <br />31 In 2004 Council began moving to a more equal contribution per employee, regardless of the <br />32 employee's family status and lifestyle choices, as supported by an employee survey done that <br />33 year. Staff has also made minimal strides toward more equalized contributions, but any <br />34 strides have has been off set by enormous premium increases and plan design changes the <br />35 City has faced over the past few years. <br />36 <br />37 <br />38 <br />39 <br />40 <br />41 <br />42 <br />43 <br />44 <br />45 <br />46 <br />47 <br />48 <br />49 <br />With the 2010 plan designs and City budget struggles in mind staff recommends an even and <br />fair split of the increase funds across the board approving the following 2010 monthly <br />cafeteria contribution levels: <br />➢ Opt Out: $435 (a $25 increase to allow insurance purchased outside the <br />City group insurance) . <br />➢ Those on either of the $1,000 Deductible Plans would receive: <br />■ Single: $575 (increase of $25) <br />■ Single + 1: $690 (increase of $25) <br />■ Family: $900 (increase of $75) <br />➢ Those on the $2,500 Deductible Plan would receive: <br />2 <br />