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t' <br /> X <br /> i <br /> Y ATR _ <br /> APPRO'IAL = <br /> November 19, 1987 <br /> -r O r <br /> Mayor and Councilmembers <br /> -FROM: / <br /> Carol B. Johnson, Finance Director <br /> J - <br /> =T T-,'NI " HEALTH INSURANCE FOR CITY EMPLOYEES <br /> As you are aware, this year Hennepin County offered their employees Family Health Plan <br /> and Group Health only as the two options for health coverage, dropping Physicians_ Health_ <br /> and`MedCenters. (About 80% of St. Anthony employees carry PHP coverage. ) <br /> The municipalities-were unhappy with this development because the municipalities have <br /> never been included on the process of developing the specifications or on the bidding <br /> procedure, even though one of the cities' representatives attended one of the County <br /> Board meetings to voice the opinions of the municipalities - to no avail . <br /> I have attended four meetings with other municipalities, who as a group decided to break <br /> away from the County to form a health insurance group. We have received rates for 1988 <br /> coverage from MedCenter and Group Health, which are the same rates bid to Hennepin <br /> County. Physicians Health' s rates will be the same as were paid in 1987 with no <br /> increases because 100% of all the Hennepin County municipalities voted to stay together <br /> s a group. <br /> The life insurance plans will remain with the same companies and the same rates through <br /> December, 1989. <br /> Attached is a resolution and agreement to be executed by the City for membership in <br /> this group. Approval will buy one year's time to research a hospitalization program to <br /> be in place in 1989. We will not be able to be a part of Hennepin County's health <br /> program. <br /> I recommend approval of Resolution 87-039. <br /> :cjk11.24.87 <br />