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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Keis and Members of City Council <br /> <br />FROM: Heidi Heller, City Clerk <br />DATE: January 6, 2017 <br /> <br />RE: 2017 Health Insurance – Health Partners Policy & Opt Out Benefits <br /> <br /> <br />For 2017, the City’s health insurance provider was changed from Blue Cross Blue Shield to <br />Health Partners in order to keep the premium increase much lower. The Blue Cross Blue Shield <br />premiums were increasing by 19% versus the same policy with Health Partners was only a 6.4% <br />increase. <br /> <br />As the Council is aware, the City provides an Opt Out benefit for those employees eligible for <br />family health insurance coverage and who have coverage through a spouse’s health insurance <br />plan. When an employee opts out of family health insurance, the result is a cost savings to the <br />City even though the opt out benefit is paid to the employee. <br /> <br />2016 opt out payments for health insurance were $575 for staff and $623 for the City <br />Administrator. <br /> <br />With regard to 2017 opt out, the following is proposed: <br /> <br />City Staff - 2017 opt out payment for staff is proposed to remain at $575 per month. <br /> <br />City Administrator – The City Administrator’s contract provides for payment of 100% of his <br />family health insurance costs, or an opt out payment of 95% of that cost. In this case, the City <br />Administrator is insured under the City’s plan and his spouse is insured at her place of <br />employment. The additional cost of the City Administrator’s family health insurance coverage <br />for 2017 would be $722.84 per month and does not include any allowance for the $2,000 <br />deductible. Based on an opt out payment of the 95% proposed, his opt out payment would be <br />$686.70 per month. <br /> <br />Staff recommends approval of the 2017 Health Partners health insurance policy and opt out <br />amounts.