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Currently there are nine employees with health insurance coverage through the City. <br />(Other employees opt -out and are covered under their spouses' plans.) A survey was <br />conducted of the nine employees to determine their renewal preference. The three <br />employees with single coverage prefer to renew at the 15 -100% coverage; of the six <br />employees with some type of family coverage, four employees are in favor of 15 -80% <br />and two are in favor of 15 -100 %. <br />From discussions with our insurance agent, the health insurance industry is evolving <br />toward high deductible health insurance plans that encourage more involvement of the <br />patient in treatment costs and decisions. Cities are beginning to offer health insurance <br />plan options that allow employees to choose either a standard health insurance plan or a <br />high deductible plan. Staff is not ready to roll out a program that includes the choice of a <br />high deductible plan due to some administrative adjustments that have to be made with <br />our benefit plan. (The City's Medical Flexible Spending Plan is on a calendar year basis <br />and the health plan on a fiscal year. Due to this and rules associated with Health Savings <br />Accounts and Medical Flexible Spending Accounts, we are effectively precluded from <br />offering an HSA plan for the current renewal year.) We anticipate that this will happen <br />for the 2008/2009 renewal, however. <br />Based on the trend toward more consumerism in health care, the hefty rate increase for <br />the 15 -100% coverage, the out -of- pocket maximum is the same under the 15 -100% and <br />the 15 -80 %, it is staff's recommendation that the health insurance renewal be for Health <br />Partners Open Access 15 -80 %. <br />2- <br />