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STAFF REPORT <br />TO:Mayor Keis and Members of City Council <br />FROM:Heidi Heller, City Clerk <br />DATE:January 13, 2020 <br />RE:2020 Health Insurance – Health Partners Policy & Opt Out Benefits <br />ACTION TO BE CONSIDERED: <br />Approve PEIP, Public Employees Insurance Program, as the City’s health insurance provider, <br />and Opt-Out payments of $575/month for family coverage and $250/month for single, under <br />age 26, coverage. <br />BACKGROUND: <br />In March 2019, the City changed from Health Partners to PEIP, Public Employees Insurance <br />Program, as was able to substantially reduce health insurance premium costs. The City agreed to <br />stay with PEIP for two years, so the City’s health insurance provider will remain as PEIP for <br />2020 with a 6.41% increase. The employee contribution for family coverage will remain the <br />same at $355/month in 2020. <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, or employees who are under age 26 and remain on a parent’s insurance plan. When an <br />employee opts out of the city’s health insurance plan, the result is a cost savings to the City even <br />though the opt out benefit is paid to the employee. <br />2019 opt out payments for health insurance were $575/month for family coverage and <br />$250/month for single, under age 26, coverage. No changes to these amounts are proposed for <br />2020. <br />RECOMMENDATION: <br />Staff recommends the 2020 Opt-Out payments remain at $575/month for family coverage and <br />$250/month for single, under age 26, coverage.