City Council Meeting Date: October 5, 2021
To: Mayor and City Council
City Administrator Martig
From: Communications & Human Resources Director Mahowald
Title
Consideration of 2022 Employee Benefits Renewal.
Body
Action Requested:
The Northfield City Council consider adopting a motion approving rates and contribution for 2022 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 June 16 and with the employee benefits committee on September 27. Gallagher went to market for Life, Long Term Disability, and voluntary Vision insurance in August. Those results were presented by staff to the Council Employment Policy Committee on September 22, 2021.
The City decided to switch from the Public Employees Insurance Plan (PEIP) to Blue Cross Blue Shield in 2020. See slide 4 in attached presentation showing the change in premium with Blue Cross Blue Shield vs. what the premium would have been if the City stayed with PEIP.
See slide 7 in attached presentation for details on 2022 Blue Cross Blue Shield medical plan design changes:
1. Gender Confirming Care
2. Gene Therapy Treatment
3. 2022 Pharmacy Copay structure change
4. Sharecare Fitness Incentive
Rates 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. Gallagher negotiated a not to exceed 13% rate cap for 2023.
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%
20...
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