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� Request for Council Action Date: 10/21/02 Item Number: Xj, E. Department Approval 1�'Ianager Approval Agenda Section Item Description: ,l 2003 Health Insurance Consent Background: The City of Roseville's contract with HealthPartners for employee health insurance will expire on December 3 1, 2002. Staff issued an RFP for 2003 Health Insurance in August and received responses from three companies in September. Open enrollment is in November. The City of Roseville has been insured with Heal&Partners since 1998. We have consistently maintained Heal&Partners Plus Network with a$10 copay and 100% hospital care. However, effective January 1, 2002, of last year we began to offer an additional $300 Deductible option to give employees and retirees a less expensive alternative; as a result, the City now offers two medical options through one provider. Employees are eligible if they work a minimum of 20 hours per week; there are 161 total eligible employees. Following receipt of the proposals this year, staff shared cost and coverage information with City employees through feedback meetings. According to surveys conducted in the October feedback meetings employees expressed a preference for the Preferred One proposal rather than renewing with HealthPartners. Generally speaking, Preferred One offers similar coverage for smaller premiums than HealthPartners. Annually, staff monitors the metropolitan region to compare Roseville premiums to other communities. Of the eleven cities surveyed, the 2003 proposed plan with Preferred One would place Roseville's health insurance rates as the second lowest. Therefore, the rates are attractive, all things considered. Policv Implications: Currently, 149 employees and retirees have chosen to receive health insurance through the City's program: 75 single and 74 family coverage. In order to establish greater equity in City contribution amounts, the City will provide uniform contributions regardless of whether employees and retirees choose the Plus/100% option or the 80%/Deductible option. Premium calculations are as follows: