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� Request for Council Action 1��5�� Item Number: �. Department Approval Manager Approval Agenda Section Item Description: 2005 City Insurances Renewal & Cafeteria Contributions Medical Background and Renewal: The City of Roseville has been insured with Preferred One since 2003. We have consistently over the years maintained a comprehensive plan with a small co-pay and 100% hospital care. However, effective January 1,2002, the City began offering an additional $300 Deductible option and in January 1,2004 we added a single plus one tier option to give employees and retirees the least expensive and most efficient alternatives. Therefore, the City currently offers two medical options and three tiers through one provider. Employees are eligible if they work a minimum of 20 hours per week and there are 163 total eligible employees comprising of 144 full-time and 19 part-time. We currently have 19 that are on the City's health plan due to COBRA events such as retirement. The City of Roseville's contract with Preferred One for employee health insurance will expire on December 31,2004. Staff issued an R�'P for 2005 Health Insurance in August and received responses fiom two companies and bid decline letters from Medica and Blue Cross in September. Open enrollment is scheduled to begin on November 9th. Following receipt of the proposals this year, staff shared cost and coverage information with the City Benefits and Wellness Committee, a committee of city employees. The two proposals that came in compared in coverage fairly closely but the premiums amounted to a 20% increase if renewal was with Preferred One and a 10% increase if the City moved back to Health Partners. The City of Roseville was insured with Health Partners from 1998 through 2002 and was satisfied with them. The Benefits and Wellness Committee supports the change to move back to Health Partners. According to email notices conducted throughout the renewal process employees have expressed concerns about increasing costs but no concerns with renewing with Health Partners. Generally speaking, Health Partners is offering similar coverage for smaller premiums than Preferred One. Lastly, staff monitors the metropolitan Stanton group 5 region to compare Rosevillepremiums to other communities. Of the twenty five cities in this group, the 2004 average premium was $969 and Roseville's premium was $943. Therefore, the rates are approximately average and