02-13-1991 Council Agenda - Laserfiche WebLink

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254114 C anrda 515 Little Canada Road, Little Canada, MN 55117 -1600 (612) 484 -2177 / FAX: (612) 484 -4538 MEMORANDUM TO: Mayor Hanson and Members of the City Council FROM: Joel Hanson, City Administrator DATE: February 8, 1991 RE: Employee Health Insurance Coverage MAYOR Raymond G. Hanson COUNCIL Beverly Scalze Bill Blesener Rick Collova Jim LaValle ADMINISTRATOR Joel R. Hanson Employee health insurance costs will total approximately $31,000 in 1991. Given the amount of this expenditure coupled with the fact that our employees have not been totally satisfied with the present plan, we have been reviewing various insurance coverage possibilities. At this point in time, we have made application to PHP and to Blue Cross /Blue Shield for health insurance coverage. (This has been done due to potential problems in insuring small groups due to pre- existing conditions and based on potential rate adjustments each carrier may impose subject to our health review.) Once final rates have been obtained, it is my recommendation that we enroll in the plan which best meets the needs of the employees subject to a maximum expenditure on the part of the City of $31,000. It would be my further recommendation that the City cap future health insurance costs at this $31,000 figure subject to employee negotiations. it should also be understood that the employees are being heavily involved in this decision in order to best meet their needs. if the Council is comfortable with this, I would ask for the authority to bind the appropriate coverage based on rates received and on the decision of the employees. This decision would be subjected to review by the Administrative Liaison. My goal in asking for this recommendation is to have new coverage in place by March 1. In order to meet that deadline, submittals have to be in to the insurance company by February 15. JRH:kpv Page 26