6. Staff Report-2015 Health Insurance
Staff Report
Date of Meeting: October 1, 2014
To: City Council
From: Kristina Handt, City Administrator
Re: 2015 Health Insurance
Background:
Last year the Council approved switching health insurance carriers from Blue Cross Blue Shi eld to
Health Partners. The plan description was similar- $1500 individual/ $3000 family deductible. The
City covers 100% of single coverage and 80% of family coverage. The Council also continued to
contribute to an HSA since this was a high deductible plan. The contributions are $105/month for
individual coverage and $140/month for family coverage. The change resulted in a $16,000 savings
to the City.
As I mentioned at the September work session, our premiums for next year are going up about 40%.
This will result in an approximately $10,000 increase to the City. I mentioned I was meeting with our
agent following the work session. A summary of our discussion is below. Health Partners must be
notified before November 7th if the City wants to change plans.
Health Partners provided the following explanation of changes to the plan.
Before January 1, 2014 On or After January 1, 2015
Pediatric Vision-
Eye Wear
No Coverage Follows DME benefit; limited
to one pair of glasses per year
Pediatric Dental No Coverage ACA compliant coverage is
embedded in plan.
Routine Care for Clinical
Trials
NA Same as corresponding benefit
Metering and Out-of-
Pocket Limits
Varies by plan All co-pays and deductibles
must meter to the out-of-pocket
limit and be no more than the
COLA amounts set by IRS.
2014 max out-of-pocket is
$6,350 individual and $12,700
family
Waiting Periods Varies by employer Limited to 90 days or less
Wigs for Alopecia Areata $350 limit One wig per year
Late Entrants Allowed with Pre0existing
Condition
Not allowed. Member must
have eligible life event or enroll
during open enrollment period.
Issue:
What health insurance plan should the City approve for 2015?
Proposal Details:
I met with Val Sutherland from health Insurance Mart on September 5th. She confirmed what Barry
had previously told me; there would be very little change in premium if the City switched providers
and in fact switching to Blue Cross Blue Shield would result in a monthly increase of over $70. In
order to get a lower premium the City would have to consider switching to a plan with a higher
deductible.
Carrier Plan Deductible Monthly Premium
Health Partners 1500/3000 (Current) $4,817.91 (2015)
$3,536.20(2014)
Health Partners 2000/4000 $4,437.08
Health Partners 3000/6000 $3,902.67
BCBS 1500/3000 (w/dental) $4,890.71
BCBS 2000/4000 (80% after deduct) $4,074.51
BCBS 3250/6500 (80% after deduct) $3,598.73
Medica 2000/4000 $4,744.12
Medica 2500/5000 (70% after deduct) $4,328.40
Other options for the Council to consider would be changing the employee contribution to the
premium and/or the HSA. Barry also had mentioned would be for the City to just provide a stipend
and the employee would have to go out on their own to find coverage.
Options:
1) Provide staff direction on plan changes and/or contributions
2) Direct staff to prepare resolution to stay with current plan and contributions