ITEM 3.9 Renewal of medical insuranceTY OF
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MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT*
REQUESTOR:
MEETING DATE:
Administration
Dan Jordet, ASID
14 October 2013
PRESENTER(():
REVIEWED BY:
ITEM
Consent Agenda
Lori Johnson, CA
3.9 2014 Medical Insurance
Program Renewal
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended that the City Council consider adopting a motion authorizing renewal of the City's
medical insurance benefit program for employees switching providers from Health Partners to Medica
but retaining all other provisions of the current program.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
No
IS A PUBLIC HEARING REQUIRED?
No
BACKGROUNDIJUSTIFICATION,
The City provides for medical and dental insurance benefit payments for each regular, full time
employee. This amount may only be used for medical insurance or dental insurance payments. If
premium costs for the employee do not use the full amount, the City retains the difference.
K.C. Foster., the City's agent for medical insurance at Integrity Insurance discovered that rates with the
City's current carrier, Health Partners, were slated to rise 18.5% for 2014. Through his diligent efforts,
Medica provided the City with a quote for medical insurance that increased rates less than 1% for 2014.
In order to secure these rates the City will more its renewal date to December 2013 to take advantage
of renewal prior to the implementation of the Affordable Care Act adopted by Congress.
Because these rates are very favorable, it is recommended that no change be made in the City's
contribution for medical or dental insurance for 2014 and the program in place for 2013 be continued
into 2014.
SUPPORTING DOCUMENTS- X ATTACHED o NONE
Comparison Table of Rates for 2013/2014
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Move that the City Council authorize the continuance of the employee medical insurance benefit for
2014 and a switch in the medical insurance provider from Health Partners to Medica
BUDGET INFORMATION
FumoiNo:
Provided through the Personal Services
provisions for all Departments |nthe 2014
Budget
ACTION TAKEN
----|
X YES
oAPPROVED ASREQUESTED ii DENIED oTA8LED oOTHER (List changes)
Health Partners
Health Partners
Medica
2013 Rates
2013 Cost
2014 Renewal
'Yo Change
2014 Cost
2014 Renewal
% Change
2014 Cost-
0-18
$
189.60
$
-
224.80
18.57%
$ -
$ 189.29
(0.16%)
$
19-24
$
189-60
$
189.60
$
224.80
18.57%
$ 224.80
$ 189.29
(0-16%)
$
189.29
25-29
= ev 189.60
$
189.60
$
224.80
18.57%
$ 224.80
$ 189.29
(0.16%)
$
189.29
30-34
203.30
$
203.30
$
241-00
18.5 4%
$ 241.00
211.66
4.11%
$
211-66
35-39
203.30
$
G09-90
$
241.00
18.S4%
723-00
$ 212.92
4.73%
$
638.76
40-44
206.80
413.60
245.20
18.57%
490.40
$ 234.03
13.17%
$
4G8.06
45-49
278.70
$
557.40
$
330.40
18.55%
660.80
281.29
0.93%
562.58
50-54
$
-------- 350-80
$
1,754.00
$
415.90
18-156%
$ 2,079.50
$ 355.95
1.47%
$
1,779.7.5
55-59
445.60
$
lo336.80
$
528.30
18.56%
$ 1,584.90
$ 445.95
0.08%
$
1,337.55
60-64
549.90
$
1,649.70
$
651-90
18.55%
$ 1,955.70
$ 567-62
3.22%
$
1,702.86
65+
$
567.30
$
-
$
672.60
18.56%
$ -
$ 437.15
(22.94%)
$
65+ Medicare
$
281.80
-
$
334.10
18.56%
$ -
$ 437.15
55-13%
$
1 Child
156.40
469.20
$
185.50
18-61%
$ 556.50
$ 154.35
(1.31%)
$
463.05
2 Children
312.80
$
-
371.00
18.61%
$ -
$ 308.69
(1.31%)
$
-
3+ Children
469.20
$
469.20
556-50
18.61%
$ 556.50
$ 463.04
(1.31%)
$
463.04
$
7,,842.30
$ 9,297.90
8,,006.19
Dollar Increase for 2014
$ 17,467.20
1,966.68
Percentage Increase for 2014
18.56%
2.09Y.1