HomeMy WebLinkAbout#09 - Health Insurance RenewalSTAFF REPORT
DATE:
November 5, 2019
TO: Mayor and Council
AGENDA ITEM 2020 Insurance Renewals
SUBMITTED BY: Jake Dickson, Assistant City Administrator
BACKGROUND:
On October 7, 2019 staff met with NFP Representative Andy Weitnauer to discuss renewal rates for health
insurance coverage from Minnesota Public Employee Insurance Program (PEIP). A renewal meeting for all
covered staff was held on October 23, 2019.
The open enrollment meeting for employees is scheduled for October 24.
ISSUE BEFORE COMMITTEE:
Should Council approve the insurance renewals as recommended?
PROPOSAL:
The 2020 renewal rate for health insurance coverage from Minnesota Public Employee Insurance Program
(PEIP) increased by 5.17%, which is less than the anticipated rate change of 10%. PEIP has been well received
by City staff, and offers a variable plan for differing levels of need.
FISCAL IMPACT:
The 5.17% increase in rates from PEIP results in an increase of $7,547.28.
The City will see no cost change in renewing their dental insurance, basic life insurance, short term disability
insurance, and long term disability insurance.
OPTIONS:
1)Approve Resolution No. 2019-080
2)Amend and approve Resolution No. 2019-080
3)Make no approval.
RECOMMENDATION:
“Move to approve Resolution No.2019-080”
ATTACHMENTS:
1)2020 renewal comparison documents
2)2020 PEIP renewal letter
3)Resolution No. 2019-xx
CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2019-080
A RESOLUTION APPROVING HEALTH CARE PLAN AND ESTABLISHING CITY
CONTRIBUTION TO EMPLOYEE HEALTH INSURANCE BENEFITS FOR 2020.
WHEREAS, the Lake Elmo City Council has determined that it is 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; and
WHEREAS, it is now necessary to determine the insurance plan and contributions to
premium costs for the period from 1/1/2020 to 12/31/2020;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL
OF THE CITY OF LAKE ELMO, WASHINGTON COUNTY, MINNESOTA, that
it should and hereby does approve the PEIP Advantage Plan for the period of 1/1/20 to
12/31/20; and
FURTHER BE IT RESOLVED, that for calendar year 2020, the City of Lake
Elmo’s contribution to the total cost of providing health insurance benefits shall be
as follows:
Advantage Plan: 90% of premium for single coverage and 80% of premium for
family coverage.
Value Option: 100% of premium for single coverage and 90% of premium for
family coverage
HSA Compatible: 100% of premium for single coverage and $100/month to HSA;
95% of premium for family coverage and $200/month to HSA.
This resolution was adopted by the City Council of the City of Lake Elmo on this ____ day of
__________, 2019.
_____________________________
Mike Pearson, Mayor
ATTEST:
___________________________
Julie Johnson, City Clerk