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CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 B. BENEFITS PROVIDED Retirees The City is required by State Statute to allow retirees to continue participation in the City's group health insurance plan if the individual terminates service with the City through service retirement or disability retirement. To be eligible for benefits, an employee must qualify for retirement or disability benefits from a Minnesota public pension plan. The employee may continue to participate in the City's group health insurance plan that the employee was a participant of immediately prior to retirement. Employees may obtain dependent coverage at retirement only if the employee was receiving dependent coverage immediately prior to retirement. Covered spouses may continue coverage after the retiree's death. The surviving spouse of an active employee may continue coverage in the group health insurance plan after the employee's death. All health care coverage is provided through the City's group health insurance plans. The retiree is required to pay 100% of their premium cost for the City -sponsored group health insurance plan in which they participate. The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. Upon a retiree reaching age 65 years of age, Medicare becomes the primary insurer and the City's plan becomes secondary. Disabled police and firefighter The City continues to pay the employer's contribution toward health coverage for Police or Firefighters disabled in the line of duty per Minnesota Statute 299A.465, until age 65. Coverage for a spouse is included, if the spouse was covered at the time of the disability. The January 1, 2013 through December 31, 2013 monthly premiums paid for Police or Firefighters disabled in the line of duty are: Employee Employee Plus Spouse Aware Plan $30 Copay $669 $1,405 $30 Copay 90/10% coinsurance 637 1,138 $500 Deductible - $25 copay 591 1,242 $2500 HDHP/HSA 442 927 $4000 HDHP/HSA 403 847 Accord Plan $30 Copay 644 1,351 $30 Copay 90/10% coinsurance 613 1,286 $500 Deductible - $25 copay 569 1,194 $2500 HDHP/HSA 425 892 $4000 HDHP/HSA 388 814 74