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