05.03 - Consider Recommendation from Health Ins Comm

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OR 9 -9 -10 HEALTH INSURANCE COMMITTEE MEETING Present: Mike Loven, Tom Ryan, Nancy Malecha, Sandy Peine, Janet Wedan, Mark Jurchen, David Jessop & Laura Dwyer — NJPA, Kate Petersen, Nancy Adams Mark Jurchen informed the Committee of the following. 1. Designation of a specific financial institution for health savings accounts is administratively allowable. 2. HSA premium trends are at an 8 % -9% increase which is consistent with other health plans. David Jessop stated that the medical inflation trend is at a 12 %- 17% increase. 3. The City currently has the appropriate Section 125 plan (cafeteria plan) in place through AFLAC. 4. Effective 1 -1 -11, Mark Jurchen will remove himself as the broker on the city's health insurance. Mark stated that this will save approximately $3,000 in premium costs and he feels that adequate support is already in place with city staff, NJPA, and HealthPartners. The Committee reviewed premium and plan design information for the following health insurance plans. 1. Open Access $15 copay plan 2. HSA $2500/$5000 non - embedded deductible plan 3. $1500/$3000 Three for Free plan 4. HSA $2500/$5000 embedded deductible plan 5. HSA $50001$10000 embedded deductible plan 6. $1000 Deductible plan 7. $500 Deductible plan The Committee's recommendations to the city council are: 1. New health insurance plans beginning 1 -1 -1 lwill be the $1500/$3000 Three for Free Plan and the HSA $2500/$5000 Embedded Deductible Plan. 2. Fund employees' HSA accounts in January 2011 with a $2,000 city contribution for each single contract and $3,400 city contribution for each family contract. In 2012 and beyond, the city's HSA contribution will be $150 per month for each single contract and $200 per month for each family contract. 3. The cash in lieu option is grandfathered in for employees currently on this option. However, once a grandfathered employee chooses to join the city's group health insurance plan, cash in lieu is no longer an option. Also, employees currently on the city's group health insurance plan do not have the cash in lieu option. C: (Documents and Settings) speinelLocal Settings l Temporary Internet Files VLKF719 -9 -10 Meeting Notes. doc