City Council Meeting Date: October 4, 2016
To: Mayor and City Council
City Administrator
From: Michelle Mahowald, Communications & Human Resources Manager
Title
Consideration of 2017 Health, Life, and LTD Benefits Renewal.
Body
Action Requested:
The Northfield City Council consider approval of rates and contributions for 2017 employee 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 of just under 3%. PEIP is able to leverage off the state's bargaining clout. The pool has grown to over 125 groups, and more than 21,000 members. The plans are tiered based on the member's choice of a primary care clinic. The City of Northfield has not had to go out for proposals each year because PEIP is exempt from bid laws. The PEIP program bids for the State every four or five years depending on what the State has going on. 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 2017, the Advantage High and Value plan designs are unchanged. The HSA plan design has been enhanced with lower out of pocket maximums for Cost Levels 1, 2, and 3.
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%
Affordable Health Care Act (ACA):
The City will continue to file ACA reports to our employees (deadline January 31, 2017) and to the IRS (March 31, 2017)....
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