City Council Meeting Date: September 3, 2024
To: Mayor and City Council
City Administrator Martig
From: Michelle Mahowald, Communications & Human Resources Director
Title
Consideration of 2025 Employee Benefits Renewal.
Body
Action Requested:
The Northfield City Council consider adopting a Motion approving rates and contributions for 2025 employee benefits coverage.
Summary Report:
The City of Northfield approved Gallagher Benefits Services as its broker for employee benefits in 2020. Gallagher Benefits Services Client Manager Colleen Schumann presented the renewal of health and other employee benefits to the employee benefits committee on August 1, August 12, and to the Council Employment Policy Committee on August 26. Gallagher's presentation is attached.
Health Insurance History
In 2020, the City decided to switch from the Public Employees Insurance Plan (PEIP) to Blue Cross Blue Shield (BCBS). According to statute, the city must go out for proposal every 5 years for employee group benefits. This year, medical and dental quotes were requested from carriers. BCBS provided a final quote of 5% increase in premiums for 2025 and a 15% rate cap for 2026.
Rate adjustments are based on group make-up, include age and area, employer contribution assumptions, historic claims costs, a forecast of future claim costs, administrative costs, taxes and assessments.
Renewals (across all plans):
2012 Premium adjustment of minus 2%
2013 Premium adjustment plus 2.4%
2014 Premium adjustment plus 8.5%
2015 Premium adjustment of 3.1%
2016 Premium adjustment of 1.55%
2017 Premium adjustment plus 3.5%
2018 Premium adjustment plus .8%
2019 Premium adjustment plus 3.1%
2020 Premium adjustment of minus 5.9%
2021 Premium adjustment plus 3.59%
2022 Premium adjustment plus 8.6%
2023 Premium adjustment plus 9.0%
2024 Premium adjustment plus 1.5%
2025 Premium adjustment plus 5%
Financial Impacts:
2025 premium costs for full-time and part-time employer and employee ...
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