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AGENDA ITEM <br />Prepared By: DJR Reviewed By: DJR Approved By: DJR <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />1. Purpose: To gain approval for the 2021 Health Insurance Plan Benefits for employees. <br /> <br />2. Background: In May of this year, the City elected to leave the LOGIS health insurance pool <br />to seek opportunities to provide quality benefits at a cheaper cost for city employees. The City <br />engaged Paychex Insurance benefits as our agent to provide these quotes and information. The <br />City received 4 plan quotes and the information was presented to the staff insurance committee. <br />After comprehensive look at the impact to the employees and the out of pocket costs for all <br />categories of employees, a decision to present the Health Partners Option was made. <br />The 2021 Health Partners premium options represents an average of 3.47% savings on <br />premiums for employees. However, the plan options provided have moved the family <br />deductibles from $5,600 to $7,600 per year. The average premium savings for family groups is <br />approximately $1055.00 per year. The savings from the premiums has the potential to be used up <br />by the employees with families to cover deductibles. <br /> <br />3. Funding: The City allocates $915 towards single employee contributions and $1472.50 <br />towards family employee contributions. The total budgeted cost to the City for employee <br />contributions for 2020 was $758,050. The City Contribution will remain the same for 2021. <br /> <br />4. Staff Recommendation: Staff recommends approval the 2021 Health Partners Plan option <br />for the medical benefits for city employees. <br /> <br />COUNCIL ACTION REQUESTED <br /> <br />Motion to Approve the Health Partners Plan Option for employee benefits for the 2021 budget <br />year. <br /> <br /> <br />Exhibits <br />A. 2020 Health Plan Options <br />B. 2021 Health Plan Options <br /> <br />Item No.: 23 Date: November 9, 2020 <br />Item Description: Health Insurance Plan <br />Presenter: Dustin Rief, City Administrator Agenda <br />Section: <br />City Administrator <br />Report <br />271 <br />271