10-10-2012 Council Agenda - Laserfiche WebLink

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Way of St. Wanda MAYOR Bill Blesener COUNCIL Rick Montour John Reis Michael McGraw Shelly Boss 515 Little Canada Road, Little Canada, MN 55117-1600 ADMINISTRATOR (651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson www.eLlittle-eanadann.us MEMORANDUM TO: Mayor Blesener and Members of the City Council FROM: Joel Hanson, City Administrator DATE: October 4, 2012 RE: Employee Health Insurance & Opt Out Employee Health Insurance — Employee health insurance costs will renew for 2013 with an 8.5% increase. As the Council is aware, the City currently pays 100% of the cost of single coverage and $980 per month (72 %) towards the cost of family coverage. City staff conducted a survey of both metro cities and Ramsey County cities and the dollar amount that the City is contributing toward family medical coverage is at the high end. The survey was based on 2012 information, however. Based on the amount of the increase and the survey information, City staff is recommending that the City's contribution toward the cost of single coverage remain at 100% and the contribution toward family coverage increase to $1,000 per month, a 2% increase over the $980 amount or 68% of the total cost of family coverage. Attached is a sheet showing the increase in premiums to City employees from $200 per month to $282 (41% increase). OptOut- The City's current Opt Out amount is $535 per month for those employees outing out of family health insurance coverage. Staff again surveyed both metro cities and Ramsey County cities and this amount is higher than the average. Again the survey was based on 2012 information. Based on the survey results, City staff is recommending no increase in the 2013 Opt Out amount. Staff is recommending that the Council take action on these City contributions at this time in order that final amounts can be used in its efforts to finalize the 2013 Budget.