11-28-1988 Council Packet - Laserfiche WebLink

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41)li DCA Center III()() HuuicVaril Minnetonka, Minnesota 41 � . (612) 541-7500 HEALTHCARE MANAGEMENT GROUI _ October 28, 1988 Tom Kuehn City of Orono P.O. Box 66 Crystal, MN 55323 Re: 198) Rates Dear Mr. Kuehn: In 1988, the insurance industry projected costs increases from 18% to 25% over prior year's experience, For 1989, costs are expected to rise at or above this same pace. The HMO marketplace is eApeciencing cost increases at or above the levels of the more traditional insurance field. The major factors in the dramatic rise are the general growth in the GNP, the rapid development of new technologies and treatment procedures, and patient utilization patterns. While increases f 40%, 50%, and 601 have been common in the HMO community, the LOGIS rates reflect. the more typical medical trend increases, showing an overall increase of 16% on single coverage and 231 on family coverage. The LOGIS Health Care Committe has reviewed the rates for 1989. At this point it was decided to proceed for Plan Year 1989 using the same three options. For the Plan Year beginning Janua-y 1, 1989, the participating rates are: Group Health PHP Med Center Single 93.34 li5.00 97.85 Family 254.70 266.00 291.25 Attached is a page showing the major benefit changes effective 1,r1/89 under each HMO coverage. Traditionally the month of Decembset is the -pen en, 1lment perir)ri during which your employees can eler'- par' vatic, in one of the three alternatives. we have been assurer' she three carriers that they have representatives avaiiable t,., assist you in open enrollment meetings and that solicitation materials will be provided. Innr11erllurts ul llrallh ('JfC 11411141� rrrrr !�ttNN1�At'l ►I.fti � !�tAl>t� ►�'