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ITEM 3.9 Renewal of medical insuranceTY OF ot ch qgo 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