HomeMy WebLinkAboutStaff Report-Health Ins Cost ShareSTAFF REPORT
DATE: December 20, 2016
CONSENT
ITEM #: 18
TO: Mayor and City Council
FROM: Kristina Handt, City Administrator
AGENDA ITEM: Employer/Employee Health Insurance Cost Share
BACKGROUND: Staff brought the health insurance renewal information to both the Finance Committee and HR
Committee in November. The purpose was to get a recommendation on whether or not the 6% increase to the premium for 2017 would be shared equally between the employer and employee, as had been the previous practice. As a result, the current employer contribution for health insurance is 87% for single
coverage and 76.5% for family coverage. ISSUE FOR DISCUSSION: What percentage of the health insurance premium should be covered by the employer beginning in 2017? PROPOSAL DETAILS/ANALYSIS: The HR Committee recommended that a policy setting specific percentages be developed rather than the past practice of sharing the increases. This would provide a clearer communication tool and better documentation of the how much the City covers. The HR Committee further recommended that the City cover 90% of the premium for single coverage and 80% for family coverage. No change in plan (currently Blue Cross Blue Shield) is recommended at this time.
FISCAL IMPACT: The increase to the City’s share of the benefit cost is approximately $800/month OPTIONS: 1) Adopt the Employer/Employee Benefit Cost Share Policy
2) Amend and then Adopt the Employer/Employee Benefit Cost Share Policy RECOMMENDATION: If removed from the consent agenda:
Motion to adopt the Employer/Employee Benefit Cost Share Policy