HomeMy WebLinkAboutItem 06.eNovember 8, 2010
Proposed Action
Council Approval of Resolution Designating
Employee Dental Insurance Rates for 2011
Staff recommends adoption of the following motion: City Council approval of resolution
designating employee dental insurance rates for 2011.
Item No.
Passage of this motion will result in a continuation of the current plan with Health
Partners.
Overview
The City has been using the HealthPartners dental plan since 2009. For 2011,
premiums are proposed to increase by 15 %.
The City will continue to pay 100% of the cost of individual coverage for non -union
employees; employees are required to pay for the cost of dependent coverage. Rates
for union employees must still be negotiated but current benefits are the same for union
and non -union employees.
The Personnel Committee is recommending approval of this resolution.
Primary Issues to Consider
What process was used to obtain insurance quotes?
Supporting Information
• Resolution Authorizing Renewal of Employee Dental Insurance for 2011.
Q
Human Resa ces Manager
Financial Impact: $_ 11,000 Budgeted: YIN _Y Source: Various Funds
Related Documents (CIP, ERP, etc.):
Notes: These benefits apply to all funds in which benefit earning employees are
budgeted.
Analysis of Primary Issues:
What process was used to obtain insurance quotes?
Staff worked with the City's insurance broker, John Korby from Nesbit Agencies, to
determine what the increase in premiums was related to. John reviewed the utilization
report and determined that part of the projected increase for 2011 was a direct result of
the "three month premium free" option that HealthPartners provided to us for choosing
them in 2009.
We decided to solicit bids to determine if there were better options available to us. We
were able to receive quotes from a number of vendors. However, the benefits offered
were not equal to those currently being offered by HealthPartners. The costs for
diagnostics and restorative work would have increased more than the projected
premium costs. Staff recommends this course of action as it appears that the best
option is to continue with our current plan through HealthPartners.
ATTEST:
Option
Family
Employee + 1
Single
Charlene Friedges, City Clerk
CITY OF LAKEVILLE
RESOLUTION NO.
RESOLUTION DESIGNATING
EMPLOYEE DENTAL INSURANCE RATES FOR 2011
WHEREAS, the City Council will establish from time to time the insurance
plans that will be provided; and
WHEREAS, the City Council will establish the costs the City will pay for
employee and dependent coverage under City group dental insurance programs;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Lakeville that the following monthly cost responsibility be adopted for the
HealthPartners Open Access Dental Choice insurance plan effective January 1,
2011:
Employee Cost
83.14
34.05
0.00
Employer Cost
42.34
42.34
42.34
Total Cost
125.48
76.39
42.34
APPROVED and ADOPTED by the City Council of the City of Lakeville
this 15th day of November 2010.
niry nc i A KEVILLE
...di
BY:
Holly Dahl, Mayor