Agenda Packets - 1997/02/03 - Laserfiche WebLink

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Item No. Staff Report No. -/9(p, L Meeting Date: February 3, 1996 Type of Business: WK • Cit of Mounds View Staff Report WK: Work Session;PH:Public Hearing; CA:Consent Agenda;CB:Council Business To: Honorable Mayor and members of the City Council From: Bruce Kessel, Finance Director Item Title/Subject: Additional information on health insurance Date of Report: January 30, 1997 Based upon discussions and a review of prior years records, it appears that since the 1970's,the City has been paying a flat dollar amount per employee for basic life insurance (presently$10,000 per employee) and health insurance. In the early 1980's,the City modified its policy to allow the employee to use this amount to purchase basic life insurance and one or more of a basket of other benefit options which includes family or single health insurance, dental insurance and/or supplemental life insurance of up to three times the employee's base salary. In 1992, the amount paid towards this benefit per employee per month was $285, and increased to $300 in 1993, to $310 in 1994, and has been at$330 since 1995. For health insurance, employees are allowed to pick from four insurance plans, including Medica Premier, Healthpartners,Blue Plus, and the League of Minnesota Cities plan. Premiums range from $126 to $159 for single coverage and $320 to $406 for family coverage. From 1990 through 1995, • the City received its coverage under LOGIS (a municipal joint powers entity), and since that time through Public Employees Insurance Plan (State of Minnesota insurance plan). When the conversion was made in 1995, it resulted in lower insurance premiums but instituted co-pays. Employees are also more selective in the plans they choose and appear to try to maximize the coverage they can receive from both the City and their spouse's plan; for example, some employees select single family health insurance, but then use the remaining funds for family dental and supplemental life insurance. The makeup of City employees is constantly changing with retirements,terminations, etc., but in general, the City has 50 employees who are eligible for health insurance. All employees receive basic life insurance at a cost of$2.30 per month. Of the 50 employees, 18 have single coverage and the balance have family coverage. Fourteen employees have supplemental life insurance at a cost of $7 to $41 per month on average (with two employees above the average at$99 and $118), based upon age and amount of coverage. Twenty employees have some or all of single or family dental insurance paid, at a cost of$1.50 to $54 per month. There are three part time employees that are eligible for a pro-rata share of benefits based upon their hours (two employees work half time and receive 50%of the $330, and one employee works three quarter time and receives 75%of the $330 benefit). In the Stanton Group Six Cities (23 metro cities with populations between 10,000 and 25,000, municipal contributions for health insurance range from $275 to 464 per month. Seventeen of the cities pay some or all of the cost of dental insurance. •