5.i) Staff Report-HSA AgreementSCANDIA
Staff RepoVt
Date of Meeting: November 18, 2014
To: City Council
From: Kristina Handt, Administrator
Re: Select Account HSA
Background:
The City has contracted with Select Account since 2007 to administer the Health Savings Account
(HAS) in conjunction with the high deductible health insurance. In 2007, the City got health
insurance through Blue Cross Blue Shield as a member of the Southwest/West Central Cooperative.
In 2014, the City left the coop for health insurance and instead received coverage through Health
Partners as a small group. This switch saved the City $16,000.
Issue:
Should the City approve the agreement with Select Account?
Proposal Details:
A copy of the mater service agreement is included in your packet. Once approved the attached
adoption agreement will be signed. The agreement is similar to past agreements with a couple
of exceptions. There are preferred electronic pricing incentives. The City will have no problem
using the group portal and paying electronically. Also account holders have already been mailed
debit cards.
Since the City is no longer offering health insurance through the coop, the monthly fees for the
HSA will increase to $0.95 per employee per month. Currently, the fee is $0.60. Although this
fee has increased, the overall cost to the City for providing health insurance is still considerably
less than had we stayed with Blue Cross Blue Shield.
Fiscal Impact:
There are 6 employees on the HSA program. Annual cost will increase $25.20 for HSA
administration.
Options:
1) Approve the Master Services Agreement
2) Do not Approve the Master Services Agreement
Recommendation:
Option 1.