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MEMO TO: Mayor 6 City Council <br />FROM: Finance Director -Treasurer Brager <br />DATE: April 3, 1986 <br />RE: EMPLOYEE. INSURANCE. BENEFITS <br />On May 1, 1986 our contract with Group Health, Inc. is up fcr <br />renewal. I have received notice from Group Health, Inc. that our <br />rates will increase to $69.25 per month for single coverage, an <br />increase of approximately 8.21; family coverage will increase to <br />$187.85, an increase of approximately 5.6%. <br />I propose that we renew the group contract with Group Health, <br />Inc. for employees and their dependents effective May 1, 1986 at <br />the above quoted rates. I further propose that an open <br />enrollment period be conducted from April 8, 1986 throught April <br />25, 1986. <br />In addition I have obtained quotations from Group Health, Inc. <br />Iut VdLAUU5 dental insurance pla.^.s. A dental 1ncijrA nfP b18n has <br />been requested by the non -union group of employees as well as the <br />two union groups in the past. Approximately two years ago we <br />tried to offer a dental plan but could not meet the participation <br />requirements of a minimum of 25 employees. The Plan now being <br />offered requires a minimum enrollment of ten employees. The City <br />has been quoted several different dental plans which range in <br />cost from $11 to $14.05 for single coverage and from $27.10 to <br />$37.55 for family coverage. Staff proposes holdino an employee <br />meeting at which the Plans would be outlined in allowing the <br />employees to choose which Plan they would like to have ofterec. <br />The resolution which authorizes the City's contribution to <br />employee insurance plans should be amended as it states "The City <br />will contribute up to a maximum of $167.50 per month per employee <br />for Group Health and Life Insurance, including dependent <br />coverage". This should he changed to include dental insurance. <br />It should read "The City will contribute up to a maximum of <br />$167.50 per month per employee for Group Health, Dental and Life <br />Insurance, including dependent coverage". <br />RECOMMENDATION: Authorize renewal of the contract with Group <br />Health Plan, Inc. to provide employee health <br />benefits effective May 1, 1986. Further <br />authorize the offering of Group Health, Inc. <br />Dental Program to City employees effective <br />May 1, 1986 and modify Resolution No. 1981 to <br />reflect the addition of a dental program to <br />the employee benefits package. <br />DB/ds <br />