City Council Meeting Date: September 15, 2020
To: Mayor and City Council
City Administrator Martig
From: Communications & Human Resources Director Mahowald
Title
Consideration of 2021 Employee Benefits Renewal.
Body
Action Requested:
The Northfield City Council consider adopting a motion approving rates and contribution for 2021 employee benefits coverage.
Summary Report:
The City of Northfield approved Gallagher Benefits Services as its broker for employee benefits in 2020. Gallagher presented the renewal of health, dental, and other employee benefits with the Council Employment Policy Committee on August 26 and with the employee benefits committee on August 31. See attached presentation.
In 2020, the City decided to switch from the Public Employees Insurance Plan (PEIP) to Blue Cross Blue Shield. Blue Cross Blue Shield provided an overall decrease of -5.9% change to 2019 health insurance premium costs. Blue Cross Blue Shield provided a second year rate cap of 13%.
See slide 11-12 of 23 in attached presentation for details on 2021 Blue Cross Blue Shield Changes:
1. Specialty Coupon Accumulator Adjustment Program
2. Re-Tiering of KeyRX Formulary from 3-tier to 4-tiers
3. E-visits - first five are covered at 100% on all plans
4. Prescription drug-Specialty drug copay changed from $350 to $400
5. Retail Clinic visits - copay will be the same as office visit copay.
The Blue Cross Blue Shield 2021 renewal came in with an overall increase of 3.59% or an increase of $40,264. Rates are based on group makeup, include age and area, employer contribution assumptions, historic claims costs, a forecast of future claim costs, administrative costs, taxes and assessments. Gallagher negotiated a not to exceed 13% rate cap for 2022.
Labor contracts are settled through December 31, 2020 for all four union groups. Premium contributions will continue as paid for full-time employees in 2020. $550 per employee per month with a 50/50 split between employer...
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