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MINUTES <br />CITY COUNCIL <br />JANUARY 9, 2013 <br />2013 HEALTH <br />INSURANCE <br />OPT OUT <br />Keis questioned the practice of providing an opt out payment for City <br />employees who have health insurance through a spouses' plan. The <br />City Administrator reviewed the report recommending the 2013 I3ealth <br />Insurance Opt Out amounts. He noted that this program has been in place <br />for a number of years, and City employees who have health insurance <br />through a spouses' plan are eligible to receive opt out compensation that is <br />just over half the amount that the City contributes toward family health <br />insurance. The Administrator indicated that this results in a win /win in <br />that the City saves money and the employee receives some compensation <br />for not taking this benefit. The Administrator also noted that it has been <br />his experience that this program has helped to keep the cost of health <br />insurance down. <br />The City Clerk reported that there are currently six City employees <br />receiving opt out compensation. She indicated that the level of opt out <br />payment is based on a combination of the cost of health insurance for a <br />single individual and the level of opt out payment provided by metro cities <br />based on the League of MN Cities (LMC) salary survey information. The <br />Clerk noted that the recommendation is to retain the 2012 opt out payment <br />level for 2013 except for the City Administrator's opt out which is based <br />on contract language and one City employee whose health insurance is <br />provided through Medicare. <br />McGraw asked if City employees opting out are required to show that they <br />utilize opt out compensation for health insurance costs. The City <br />Administrator replied that the City does not oversee how this money is <br />expended by the employee. The Administrator indicated that City staff <br />can provide more detailed information on the opt out program for the <br />Council's review. He noted that the program has been in place for <br />approximately 15 years and is also addressed in the City's Personnel <br />Policy. <br />Blesener introduced the following resolution and moved its adoption: <br />RESOLUTION NO. 2013 -1 -9 — APPROVING 2013 OPT OUT <br />PAYMENTS AS PROPOSED IN STAFF'S REPORT DATED <br />JANUARY4, 2013 <br />The foregoing resolution was duly seconded by McGraw. <br />Ayes (5). <br />Nays (0). Resolution adopted. <br />5 <br />