HomeMy WebLinkAbout20120917 - VI-08
City Council Memorandum To: Mayor Hicks & City Councilmembers From: Melanie Mesko Lee, Assistant City Administrator Date: September 13, 2012 Item: 2013 Insurance Council Action Requested:
Approve the City/employer split for 2013 health insurance rates, and affirm 2013 life and longterm disability rates. Background Information: The City offers two health insurance plans
from which employees can choose—a traditional plan (Triple Gold) and a high deductible plan (Options Blue) with an HRA. City practice, and union contract require that the increase in
family premiums be split 50/50 between the City and the employee. The City also pays 100% of the single health insurance premium for all employees; the amount is consistent with the
higher cost plan. For 2013, the City will see an 11.2% increase in health insurance rates. Council is requested to approve the funding breakdown of the plans offered as follows: TRIPLE
GOLD City employee TOTAL SINGLE per month per paycheck 2012 $559.50 $559.50 $0.00 $0.00 2013 $622.00 622.00 $622.00 monthly difference/increase $62.50 $0.00 $0.00 $622.00 2012 premium
$622.00 $0.00 $0.00 $622.00 TRIPLE GOLD City employee TOTAL FAMILY per month per paycheck 2012 $1,556.50 $937.14 $619.36 $309.68 2013 $1,731.00 monthly difference $174.50 monthly increase
$87.25 $87.25 $43.63 $174.50 2012 premium $1,024.39 $706.61 $353.31 $1,731.00
Options Blue City employee TOTAL SINGLE Premium HRA Taxable to employee Total per month per paycheck 2012 $443.50 $443.50 $79.96 $36.04 $559.50 $0.00 $0.00 2013 $493.00 monthly difference/increase
$49.50 $13.00 $0.00 $0.00 $0.00 2012 premium $493.00 $92.96 $36.04 $622.00 $0.00 $0.00 $622.00 Options Blue City employee TOTAL FAMILY Premium HRA TOTAL per month per paycheck 2012 $1,234.00
$782.26 $154.88 $937.14 $451.74 $225.87 2013 $1,372.00 monthly difference $138.00 monthly increase $69.00 $18.25 $69.00 $34.50 $138.00 2012 premium $851.26 $173.13 $1,024.39 $520.74
$260.37 $1,372.00 In 2011, the City went out for bids for both Life and Long Term Disability coverage. Not only did those rates decrease for 2012, but are locked in for 36 months. .
Financial Impact: The health insurance increase has been included in the 2013 draft budget. Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: N/A