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515 Little Canada Road, Little Canada, MN 55117-.1600 <br />(651) 766 -4029 FAX: (651) 766 -4045 <br />www.ci.liLtle- canada.mn.us <br />MEMORANDUM <br />TO: Mayor I3lesener and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: February 3, 2011 <br />RE: Health Insurance Cost Reimbursement <br />ADMINISTRATOR <br />Joel R. Manson <br />As the Council is aware, the City participates in the cost of employee health insurance to a <br />maximum of $934 per month for family coverage. Employees pay the balance of their monthly <br />health insurance costs. Employees who have other health insurance and opt out of the City's <br />health insurance plan are paid $525 per month as an Opt Out benefit. <br />The Parks Recreation Director has decided to go onto Medicare insurance as well as purchase <br />a supplemental plan for a total cost of $360 per month, while retaining his spouse on the City's <br />health insurance plan at a cost of $426 per month. <br />Staff is recommending that the Director be reimbursed his out -of- pocket expenses for Medicare <br />and supplemental insurance as well as recommending the City pay the cost of his spouse's <br />insurance. The net impact of this change is that the Director will save $132 /month in health <br />insurance premium costs, while the City will save $148 /month. <br />MAYOR <br />13111 Blesener <br />COUNCIL <br />Rick Montour <br />John [(cis <br />Michael McGraw <br />Shelly Boss <br />