City Council Meeting Date: October 3, 2023
To: Mayor and City Council
City Administrator Martig
From: Michelle Mahowald, Communications & Human Resources Director
Title
Consideration of 2024 Employee Benefits Renewal.
Body
Action Requested:
The Northfield City Council consider adopting a Motion approving rates and contributions for 2024 employee benefits coverage.
Summary Report:
The City of Northfield approved Gallagher Benefits Services as its broker for employee benefits in 2020. Gallagher Benefits Services Area Vice President Jessica Nikunen presented the renewal of health and other employee benefits to the employee benefits committee on September 13 and to the Council Employment Policy Committee on September 18.
The City decided to switch from the Public Employees Insurance Plan (PEIP) to Blue Cross Blue Shield (BCBS) in 2020. Gallagher negotiated a 13% rate cap for 2024 BCBS medical coverage. BCBS delivered a 1.5% average increase from current rates (+$22,713).
One change was made to our 2024 plan design. The IRS increased the HSA deductible to $3,200 for single coverage and $6,400 for family coverage in 2024. See Medical Plans Renewal Summary - BlueCross BlueShield of Minnesota in the attached PDF. The changes are highlighted in blue print.
Rates 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%
Financial Impacts:
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