City Council Meeting Date: October 15, 2019
To: Mayor and City Council
City Administrator
From: Michelle Mahowald, Communications & Human Resources Director
Title
Consideration of 2020 Health and Life Benefits Renewal.
Body
Action Requested:
The Northfield City Council consider adopting a motion approving rates and contribution for 2020 employee benefits coverage.
Summary Report:
The City of Northfield hired Gallagher Benefits Services to request formal proposals and conduct a medical marketing review and recommendation for 2020 health insurance benefits. Eight carriers prepared quotes. One quote submitted by Blue Cross Blue Shield was the only quote considered competitive with the Public Employees Insurance Plan. Blue Cross Blue Shield provided an overall decrease of -5.9%, change to the city's 2019 premium costs. The Public Employees Insurance Plan (PEIP) 2020 renewal was an overall increase of 5.61% to the 2019 PEIP premium costs.
Blue Cross Blue Shield provided a second year rate cap of 13%. The rate cap guarantees health insurance premium costs will not exceed 13% for 2021 coverage. PEIP does not offer rate caps.
Gallagher Benefits Services recommended three plans from Blue Cross Blue Shield's "AWARE Network Options". Rates are based on group makeup, including age and area, employer contribution assumptions, historic claims costs, a forecast of future claim costs, administrative costs, taxes and assessments.
Labor contracts are settled through December 31, 2020 for all four union groups. Premium contributions will continue as paid for full-time employees in 2019. $550 per employee per month with a 50/50 split between employer and employee for each plan.
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 Premiu...
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