5.11.
| CC Regular Session |
| Meeting Date: | 08/08/2023 |
| Primary Strategic Plan Initiative: | {ud_pd7} |
Information
Title
Adopt Resolution 23-181 Approving a 2-year Extension of the City's Health Insurance Renewal with HealthPartners for 2025-2026.
Purpose/Background:
The City of Ramsey's employee health insurance benefits have been part of the Local Government Information Systems (LOGIS) consortium since 2012. When the pool last went out for bid, the agreement with HealthPartners was for 2022-2024. The LOGIS Committee and HealthPartners have agreed to another 2 years which includes pool rate caps of 9.5% in 2025 and 9.5% in 2026.
Given the inflationary increases seen across the economy and particularly in the healthcare industry, which tends to have increases greater than other goods and services, the Committee felt that single digit increases for two more years is beneficial to the pool members and provides for the ability to complete future union negotiations. The additional two years will bring us to the end of the 5-year contract duration allowed under state statute, when the pool will market the plan for coverage beginning January 1, 2027.
To ensure stability, all organizations will need to agree to remain in the pool for the next contract cycle through December 31, 2026. The reason for this is that if an organization decides they want to leave the pool before the end of the contract, HealthPartners has the right to adjust rates for the remaining pool members.
The City's history with LOGIS has proven to be highly beneficial. There were just two years (2015 and 2016) where the City outperformed the pool, but the other 9 years the experience of the pool has helped the City.
The City's current union contracts expire on December 31, 2024. Having advance knowledge of the maximum possible increase to health insurance rates ahead of negotiating the next contracts will be beneficial.
Given the inflationary increases seen across the economy and particularly in the healthcare industry, which tends to have increases greater than other goods and services, the Committee felt that single digit increases for two more years is beneficial to the pool members and provides for the ability to complete future union negotiations. The additional two years will bring us to the end of the 5-year contract duration allowed under state statute, when the pool will market the plan for coverage beginning January 1, 2027.
To ensure stability, all organizations will need to agree to remain in the pool for the next contract cycle through December 31, 2026. The reason for this is that if an organization decides they want to leave the pool before the end of the contract, HealthPartners has the right to adjust rates for the remaining pool members.
The City's history with LOGIS has proven to be highly beneficial. There were just two years (2015 and 2016) where the City outperformed the pool, but the other 9 years the experience of the pool has helped the City.
| Plan Year | City of Ramsey Total Plan Loss Ratio | LOGIS Plan Loss Ratio |
| 2012 | 155.7% | 107.1% |
| 2013 | 149.9% | 110.3% |
| 2014 | 154.1% | 107.0% |
| 2015 | 55.7% | 105.4% |
| 2016 | 58.1% | 99.6% |
| 2017 | 243.0% | 129.9% |
| 2018 | 253.6% | 120.6% |
| 2019 | 198.7% | 119.8% |
| 2020 | 190.3% | 100.4% |
| 2021 | 162.6% | 109.9% |
| 2022 | 137.5% | 113.9% |
The City's current union contracts expire on December 31, 2024. Having advance knowledge of the maximum possible increase to health insurance rates ahead of negotiating the next contracts will be beneficial.
Funding Source:
Not Applicable.
Recommendation:
Adopt resolution #23-181 to Approve a 2-year Extension to the City's Health Insurance Renewal with HealthPartners for 2025 and 2026.
Action:
Motion to Adopt Resolution #23-181 to Approve a 2-year Extension to the City's Health Insurance Renewal with HealthPartners for 2025 and 2026.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Brian Hagen | Brian Hagen | 08/03/2023 12:26 PM |
- Form Started By:
- Colleen Lasher
- Started On:
- 08/01/2023 02:12 PM
- Final Approval Date:
- 08/03/2023