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AGENDA ITEM <br />Prepared By: RO Reviewed By: A. Carlson Approved By: <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />1. Purpose: To gain approval for the 2022 health insurance plan for employees. <br /> <br />2. Background: In May of 2020 the City left the LOGIS health insurance pool to seek <br />opportunities to provide quality benefits at a more reasonable cost for city employees. In 2021 <br />the City selected had Health Partners as an insurance provider with the result of a slight decrease <br />in premiums. However, the renewal rate for Health Partners in 2022 reflects an increase of 25% <br />over the 2021 rate. This would have real dollar impacts to both the city budget and our <br />employees’ personal finances. Since we were notified of this increase a few weeks ago, we have <br />engaged a new insurance broker and had them provide us quotes on other carrier options. The <br />Public Employees Insurance Plan (PEIP) came in as the most cost effective option at an overall <br />increase over our current plan of ~ 3.4%. These are averages as the specific impact depends on <br />the individual plan (employee, employee/spouse, employee/children, and family). <br /> <br />3. Funding: The City currently allocates $915 towards single employee contributions and <br />$1472.50 towards family employee contributions. The contribution for single coverage will <br />remain at $915. Based on union agreements, the family contribution is increased in an amount <br />equal to 50% of the increase in family coverage. While the overall increase is 3.4%, the family <br />coverage is increasing by 17%. The City contribution for family insurance in 2022 will increase <br />to $1627.25. <br /> <br />4. Staff Recommendation: Staff recommends approval of PEIP as the medical plan for City <br />employees in 2021 and 2022. <br /> <br />COUNCIL ACTION REQUESTED <br />Motion to approve the Public Employee Insurance Plan (PEIP) for employee benefits for the <br />2022 budget year. <br /> <br /> <br />Exhibits <br />A. 2022 Health Plan Options <br /> <br />Item No.: 12 Date: November 9, 2020 <br />Item Description: Public Employees Insurance Plan <br />Presenter: Ron Olson <br />Finance Director <br />Agenda <br />Section: <br />Finance Director <br />Report