City Council Meeting Date: October 17, 2017
To: Mayor and City Council
Ben Martig, City Administrator
From: Michelle Mahowald, Communications & Human Resources Director
Title
Consideration of 2018 Dental, Health, and Life Benefits Renewal.
Body
Action Requested:
The Northfield City Council consider adopting a motion approving rates and contribution for 2018 employee benefits coverage.
Summary Report:
The City of Northfield has been with the Public Employees Insurance Plan since 1991. The PEIP Advantage Plan is based on the very successful Minnesota Advantage Plan, a cost tiered health benefits plan. The Advantage Plan gives the employees a choice of three plans (Blue Cross Blue Shield (BCBS), HealthPartners (HP), and Preferred One (P1).
The pool has performed very well over the last nine years with an average annual renewal increase of 2.3%. PEIP is able to leverage off the state's bargaining clout. The pool has grown to over 175 groups, and more than 25,000 members. The plans are tiered based on the member's choice of a primary care clinic. The City of Northfield has not been legally required to competitively request proposals as the PEIP pool manages the responsibility of competitive bidding. Specifically, the PEIP program bids for the State every four or five years. A true "Pool" like PEIP is an excellent place for a group that would have high claims volatility on its own. The City of Northfield's renewal is based on the total pool's (21,000 members) claims experience.
For 2018, there are no significant plan changes except the addition of the no cost voluntary OMADA program which helps members avoid type 2 diabetes.
Renewals:
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 plus 1.55%
2017 Premium adjustment plus 3.5%
2018 Premium adjustment plus .8%
Affordable Health Care Act (ACA):
The City will continue to file ACA reports to our e...
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