• $2000/$4000 deductible plan (Three for Free)

• $1500/$3000 deductible plan

• $25/100% copay plan

 

Giving employees a larger role in healthcare decision-making through the use of deductible plans, wellness education, and encouraging the use of convenience care clinics are beginning to have a positive effect on the city’s claims experience. This positive effect on claims experience should ultimately lower the city’s healthcare costs.

 

Per state statute, the city must negotiate its contribution to health insurance with union employees; therefore, when the city reaches tentative agreement with the AFSCME group, LELS Sergeants and LELS Patrol, that information will be presented to the City Council for consideration.

 

 

Below are premiums for the 2011 health plans as well as employee deductible and maximum out-of-pocket costs. Staff is proposing the 2011 health insurance contribution levels in the table below for non-union employees.

 

2010 Contribution Levels
			City	City	Total	EE
		Total	Contribution	Contribution	COR	Contribution
		Premium	to Premium	to VEBA**	Contribution	to Premium
Three for Free*
Single ($2000 ded/$3000 OOP)		$536.87	$536.87	$130.00	$666.87	$0.00
Family ($4000 ded/$5000 OOP)		$1344.66	$813.75	$192.00	$1005.75	$530.91
$1500 Deductible
Single ($1500 ded/$3000 OOP)		$554.65	$466.94	$130.00	$596.94	$87.71
Family ($3000 ded/$6000 OOP)		$1389.14	$781.20	$192.00	$973.20	$607.94
$25/100%
Single ($2500 OOP)		$762.77	$517.14		$517.14	$245.63
Family ($5000 OOP)		$1909.59	$831.56		$831.56	$1078.03
*Each plan member receives three free office visits (physician services) annually in addition to the preventive care visit.
**The City’s 2010 VEBA contribution includes the $4.30 monthly claims fee.

Staff recommends that that Personnel Committee by motion recommend that the City Council approve the above-listed health insurance contributions for non-union employees. If approved, the monthly health insurance contributions will go into effect January 1, 2011.