ITEM 3.12 Changing Health Insurance0
F
Otsezo
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Finance
Kathy Grover,Finance Assistant
Sept 22, 2014
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent
Lori Johnson, City Administrator
3.12
AGENDA ITEM DETAILS
RECOMMENDATION:
Recommend changing from Medica Health Insurance to HealthPartners due to rate increase of 57% for
contract period beginning December 1, 2014.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes
No
BACKGROUND/JUSTIFICATION:
The City's health insurance contract with Medica is up for renewal on December 1, 2014. The renewal
rate increase came in at 57%. KC Foster of Integrity Insurance was able to get us the same coverage
through HealthPartners at a 32% rate increase. The City's premium with Medica for 2014 was $6,612.24
and would be going to $10,406.88 and does not include Mayo Clinic and Hospitals. The premium with
HealthPartners is $8,753.00 and does include Mayo Clinic and Hospitals. Both plans are the 3000/6000
100% Embedded HSA plan.
SUPPORTING DOCUMENTS: X ❑ ATTACHED ❑ NONE
• Rate Comparison sheets
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to approve entering into a contract with HealthPartners for the contract period effective
December 1, 2014 through November 30, 2015.
BUDGET INFORMATION
FUNDING:
BUDGETED: ❑ YES
❑ NO
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
Medica New Business Quote" Effective 12/01/2013
Version 1.0
Employer City of Otsego
Agency Victory
Agency Relationship Manager Anderle
Incumbent carrier HealthPartners
State MN
Zip 55330
Information from Renewal Offer (Using Original Quoted Plan)
Most recent quoted effective (late
'Pier
Benefit Plan
30-34 Year Old Premium Rale
1/1/2012
1/1/2013
0.86
0.84
Empower 3000-100%
Em ower 3000 100%
$201.60
$203.30
Information from Renewal Offer (Using Original Quoted Plan)
Most Recent Experience Period
Period Beginning Date 7/1/2011
Period Ending Date 6/30/2012
Total Prenliuln $77,337
Combined Loss Ratio 135%
Desired Nledica Offering
F,ffective Date 12/1/2013
Only employers with current 9/1 through 12/1 anniversaries may use their current anniversary date instead of 12/1
Desired Medica Plan (Optional) I MIC PP MN 3000.100% HSA
Used only for providing premium estimate. Standard rules continue regarding availability of nlultple plans.
Quote
Medica Tier for 12/01/2013 0.75
Adult Rates:
<25
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65+11MO
65+1vl I , D
Child
2 Children (# units)
3+Children (# units)
Total
CCI1St1S tUpllO11111)
$189.29
$189.29
$211,66
$212.92
$234.03
$281.29
$355.95
$445.95
$567.62
$437.15
$437.15
$154.35
$308.69
$463.04
0 $0.00
* Rates are contingent on receipt of:
Employer Group Application
Subscriber Enrollment Porno
Wage & Tax Statement
Benefit Selection Pone
Incumbent's Renewal Packet (specifically the source data used for inputs above)
Copy of this proposal I'DP generated by the pricing tool
Incumbent December 2013 renewal packets must also provide documentation of prior renewal anniversary date
lhldemi-iling will validate this documenation before the quote is finalized.
Note: Medica Tier and Rate Quote Expires on 10/12/2013
1 \CnSlGroups - SnsalnSmall Group 2013 Quocest2013 SG Proposal "I'emplace Primed 82812013 3.45 PAI
eidliu Healt%Partners» MN Medical Product Rate Sheet - 2014
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Area: MN -8
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0-17
$214.07
$214.07
41
$313.17
$360.16
18
$214.07
$246.19
42
$318.70
$366.52
19
$214.07
246.19.-..._.
43
_. $326.40.
__.._$375.37
20
$214.07
$246.19
44
$336.02
$386.44
...__-.--21._.-•---•----------$240.53_._._..
_.•__----276.62 ....__.--_45X347.33
__.m._.$399.44-._._._
_....._.. _.22 _...._.
_..._.... _.----240.53
$276.62._v_.
46 ...'.
$360.80
$414.93 -_
-- __- 23 -.-
------ --- $240.53
---�_ $276.62 -
47 --
- $375.95 -----
$432.36
24
$240.53
$276.62
48
$393.27
$452.27
25
$241.49
$277.73
49
$410.34
$471.91
26
$246.30
$283.26
50
$429.59
$494.04
27
$252.08
$289.90
51
$448.59
$515.90
28
$261.46
$300.69
52
$469.51
$539.96
...._..�_29_._.._.-__-_�--__•
$269.150•-----
-.._....309.54 ---•-•
53.._.
$490.68$564.30-•---.
30
$273.00
$313.96
54
$513.53
$590.58
31~-
$278.77
- - - $320.60
55 _ a
$536.38 - -_
$616.86
32
$284.55
$327.24 Y _
56
$561.16
$645.35
_.�._ 33 -_.VP_..
$288.15�_..�
._._..m__$331.39
57_.�
586.17
..Y. $674.12
.._. �._ _..34
$292.00
, _ _.. • $335.82 •
58
$612.87 ~�
$704.83
_a-• 35
293.93 --•--__.____._..
„338.03 ._... _._...._._.
59_.._�_._._..__
_--.-$626.10 ._..__....,..720.04
35 _....
,...__._..__$295.85
$340.24
60..__
$652.80 r....
$750.75 .. _._.
37
$297.78
$342.46
61
$675.89
$777.30
38
$299.70
$344.67
62
$691.04
$794.73
_-_-- 39R._.....
$303.55
349.09 ._.63...__.$710.04
$516.58 ._
_40
$307.40 __.�..
-�...-- $353.52_._ .,.
64
$721.59fT_._...-_
$829.86 ^
--------------
--
�_...._$721.59$829.56
65+
$721.59
Pkg Code: SE312 Effective: 10/01/2014
Thursday, September 11, 2014 1:19 PM Confidential and Proprietary Page 1 of 1
Created by Marketing and Sales Systems
City of Otsego
Company Deductible/Plan Out -of -Pocket Maximum (OOP). Rate
Current Medica 3000-100% Embedded HSA $3,000 Individual/$6,000 Family $6,612.24
Renewal (57%T) Medica 3000-100% Embedded HSA $3,000 Individual/$6,000 Family $10,406.88*
Alternate (32%T) HealthPartners 3000-100% Embedded HSA $3,000 Individual/$6,000 Family $8,753.00
*Medica's renewal does not include Mayo Clinic and Hospitals.
P.O. Box 9310
Minneapolis, MN 55440-9310
952-992-2900
Fax: 952-992-3700
-- AGE TABLE --
Final
Rates Valid For Effective Dale Through 1211512014
Account Name: City of Otsego Effective Date: 12/01/2014
Account Number: 1152704 Print Date: 09/19/2014
Proposal Number: 177986 Agent. Kurt Foster Sic Cade: 9199
Location: MN - Area 8 Phone: (763)450-7821 Risk Factor: 1.000
AGE BAND MIC FOCUS MN
3000-n%- HSA SILVER
Adult Rates: <21
21-21
22-22
23-23
24-24
25-25
26-26
27-27
28-28
29-29
30-30
31-31
32-32
33-33
34-34
35-35
36-36
37-37
38-38
39-39
40-40
41-41
42-42
43-43
44-44
45-45
46-46
47-47
Page 1 of 7
254.52
285.97
285.97
285.97
285.97
287.12
292.84
299.70
310.85
320.01
324.58
331.44
338.31
342.60
347.17
349.46
351.75
354.04
356.32
360.90
365.48
372.34
378.92
388.07
399.51
412.95
428.96
446.98
48-48 l
467.57
49-49
487.87
50-50
510.75
51-51
533.34
52-52
558.22
53-53
583.39
54-54
610.55
55-55
637.72
56-56
667.18
57-57
696.92
58-58
728.66
59-59
744.39
60-60
776.13
61-61
803.59
62-62
821.60
63-63
844.20
64+
857.92
Child(ren): - 1 child
254.52
2 children
509.03
3+ children
763.55.
MEDICA.