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10.e 2021 Non-Union Insurance Coverage SelectionDATE: FROM: TO: RE: HEALTH INSURANCE Total Current Carrier Premiums Increase over PY % Change HealthPartners 2100-100 Rx Plus HSA (2021)57,395.08$ 20,153.52$ 54.12% Proposed Carriers PEIP Advantage 56,992.74$ 19,751.17$ 53.04% PEIP Value 51,232.15$ 13,990.58$ 37.57% PEIP Advantage HSA 39,851.87$ 2,610.30$ 7.01% Preferred One HSA 37,397.64$ 21,756.07$ 58.42% DISABILITY INCOME INSURANCE Full-Time Employees Add Part-Time Total cost Total Cost Madison National Life (2020)3,608.40$ 4,849.20$ DENTAL INSURANCE 4 Employees NO EXISTING COVERAGE Total Cost HealthPartners Open Access Dental 3,927.48$ PEIP at 90% or more City Share 2,549.40$ PEIP at 50% to 89% of City Share 3,455.04$ The City Council has the choice to extend disability income insurance to its part-time employees. Leaving this benefit's coverage at its current level will cost $3,608.40 The under a switch to the PEIP Insurance program, the City Council has the option to extend dental coverage to full-time benefits eligible employees. Below are the costs the City would be responsible for. The recommended option is highlighted in yellow. Part-time employees would not be included. October 16, 2020 Ken Cammilleri, City Administrator Selecting 2021 Health Insurance and Benefits for Non-Union Benefits Eligible Employees Honorable Mayor and City Council Members Each year, the City Council is tasked with selecting health plans for its non-union employees. This year the City Council is recommended to select the Public Employee Insurance Program (PEIP) Advantage HSA Plan. This option plan presents lower costs to both the City and employees. It also has more stable yearly increased costs that average around 3% each year. All highlighted yellow recommendations were included in the original general fund budget proposal. 1 of 2 City of Scandia 14727 209th St. N. PO Box 128, Scandia, Minnesota 55073 Phone (651) 433-2274 Fax (651) 433-5112 http://www.ci.scandia.mn.us LIFE INSURANCE 8 Employees Add Fire Chief EXISTING COVERAGE Total Cost Total Cost NCPERS Group Life Insurance (2020&2021) $16 per month per employee 1,536.00$ 1,728.00$ The following is a breakdown of total costs depending adding part-time benefits and/or dental coverage. Fulltime Benefits Adding Part-time Eligible Level Benefits Coverage Total Cost Total Cost TOTAL EXISTING 2020 COVERAGE COST 41,872.37$ TOTAL PROPOSED 2021 COVERAGE COST 44,996.27$ 46,429.07$ TOTAL 2021 WITH DENTAL 47,545.67$ Please let me know if you have any questions. Currently, the City's employee life insurance coverage extends to all regular and part-time employees except to the Fire Chief. (The Treasurer was 'grandfathered in" when the City adjusted its benefits eligibility threshold. The following is the current cost and the additional cost to add coverage for this position. 2 of 2 City of Scandia 14727 209th St. N. PO Box 128, Scandia, Minnesota 55073 Phone (651) 433-2274 Fax (651) 433-5112 http://www.ci.scandia.mn.us