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5.e REsolution 09-18-18-01 approving the Health Care Plan and establishing contribution to Employee Unsurance Benefits for 2019c SCANDIA Staff Report Date of Meeting: September 18, 2018 To: City Council From: Neil Soltis, City Administrator Re: Health Partners Renewal for the year December 1, 2018 to November 30, 2019 Background: Beginning in 2014 the City has purchased group hospitalization coverage through Health Partners. In 2015 as a part of the labor agreement, coverage for the public works employees was moved to a plan sponsored by the Union. The City Administrator, Deputy Clerk and Public Works Director remain on the Health Partners plan. The City's personnel policy calls for the City to pay the full cost for single coverage and 80% of the cost for family coverage. The current plan that provides for 100% coverage after a $2,000 deductible with a maximum out of pocket cost of $2,250 for individuals and $4,500 for family coverage. The city also provides a contribution to a Health Savings Account to help offset the deductible. Those amounts are $120 per month for individuals and $160 per month for families. There are minor changes between the current and proposed plan with the most significant being charged for allergy and other injections being 100% covered to a $2 co -payment. The monthly cost to the City for the replacement plan as proposed by Health Partners is $3,269 a month which is an increase of $572 a month from the current. Our insurance consultants noted that Health Partners is the only company that is currently writing policies for small groups such as ours at a competitive cost. While Health Partners offers an options coverage that would reduce the cost by $70 per month, there would be a dilution in the coverage provided. Issue: Should the City Council approve the renewal of employee group hospitalization coverage with Health Partners? Proposal Details: A description of the current and proposed plans follow this report. Fiscal Impact: The increased cost to the City would be $6,860 for the year. This increase has been factored into the information presented on the preliminary budget and maximum tax levy. No increase is being proposed for the City contribution to the individual HSA accounts. Options: 1) Approve the renewal as proposed 2) Select another options provided by Health Partners. 3) Seek proposals from group hospitalization coverage from other insurance companies. Recommendation: Option 1. CITY OF SCANDIA RESOLUTION NO.: 09-18-18-01 RESOLUTION APPROVING HEALTH CARE PLAN AND ESTABLISHING CITY CONTRIBUTION TO EMPLOYEE HEALTH INSURANCE BENEFITS FOR 2019 WHEREAS, the Scandia City Council has determined that it is the best interest of the City to provide a health insurance plan to help maintain the health of its current employees and to enable the city to attract and retain a quality workforce; and WHEREAS, it is now necessary to determine the insurance plan and contributions to premium costs for the period from 12/1/2018 to 11/30/2019; NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that it should and hereby does approve the Health Partners: SE Open Access HSA Open Access Rx Plus Gold 2000-100 for the period of 12/1/19 to 11/30/19; and FURTHER BE IT RESOLVED, that for calendar year 2019, the City of Scandia's contribution to the total cost of providing health insurance benefits shall be as follows: 100% of premium for single coverage, 80% of premium for family coverage, $120/month HSA contribution for those on single plan and $160/month for those on a family plan. Adopted by the Scandia City Council this 18th day of September, 2018. Christine Maefsky, Mayor ATTEST: Neil Soltis, Administrator/ Clerk