HomeMy WebLinkAbout#18 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
City of Lake Elmo, Minnesota
Employer/Employee Benefit Cost Share Policy
Adopted December 2016
The Lake Elmo City Council has determined that it is in the best interest of the City to
provide a health insurance plan to help maintain the health of its current employees and
to enable the city to attract and retain a quality workforce.
Therefore, beginning in January 2017 the City will cover 90% of the monthly premium
for single coverage and 80% of the monthly premium for family coverage. Furthermore,
the City will cover 100% of the monthly premium for dental coverage.