5.f) Staff Report-2015 Health InsuranceSCANDIA
Staff Repovt
Date of Meeting: October 21, 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 Shield 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.
At the October work session the Council indicated their desire to renew the current health insurance
plan for 2015 but to plan to look closer at changes in the following year.
Issue:
What health insurance plan should the City approve for 2015?
Proposal Details:
Included in your packet is a resolution to continue with the current plan and contributions for 2015.
Health Partners must be notified by the first week in November if the City plans to change plans for
the coming year.
Fiscal Impact:
The monthly premium for the group will increase from $3,536.20 to $4,817.91 beginning in
December. This results in approximately a $10,000 increase for the 2015 budget. These funds are
included in the draft budget.
Options:
1) Approve Resolution 10-21-14-01
2) Amend and then Approve Resolution 10-21-14-01
3) Do not approve Resolution 10-21-14-01
Recommendation:
Option 1