HomeMy WebLinkAbout2022 Health-Dental-One Time Lump Sum to be presented to City Council for adoption by motion2022 HEALTH/DENTAL INSURANCE/ONE -TIME LUMP
SUM/BUDGET ADJUSTMENT
JANUARY –DECEMBER 2022
2022 HEALTH AND DENTAL RENEWAL OPTIONS
Rexburg Staff and Mayor asked our Agent to do a market check on Health Insurance after initial negotiations with Blue Cross
After a market check, it was decided to do a Request for Proposal (RFP)
The RFP sought to provide very comparable benefit plan
Results of RFP on Medical
Current Provider Blue Cross quoted a 10.01% increase on Medical
City had budgeted a 16% increase for Health/Dental
Our experience rating improved dramatically from the time we did the payroll budget last March
Select Health quoted a 1.38% increase for medical
Pacific Source quoted no increase for Medical, and a Rate Cap Agreement in Year 2 not to exceed 9.9%
The Disruption with Pacific Source was very minimal on the Health Plan
They would also provide a Vision Plan
Results of Dental RFP
Blue Cross offered Dental Plan with no increase
With Pacific Source we would experience a 56% disruption, meaning 56% of the providers our employees have used in the past would be out of network
2022 HEALTH AND DENTAL RENEWAL RECOMMENDATIONS FROM STAFF/MAYOR AS PRESENTED TO
EMPLOYEE COMMITTEE
Rexburg Staff and Mayor recommend the following:
Renew Health Insurance with Pacific Source on a fully insured plan
Renew Dental Insurance with Blue Cross of Idaho
Increase the Health/Dental Employer Deduction Rates by 3%
Increases annual set aside to savings from approximately $146,000 to $236,000
Take a minimal increase on Teleadoc (total of $864/year) and Employee Assistance Plan (EAP-$2,523/year)
ONE-TIME PAYROLL LUMP SUM ANALYSIS/CONSIDERATIONS
Consider a One-Time Payroll Lump Sum Pay to FT Employees
Revenues came in much stronger than anticipated since adopting the wage freeze
Would be a good gesture of appreciation to our employees who provided excellent service during COVID in all
areas, including critical response and continued operation of vital services
Have seen the effects of high inflation that is impacting our employees, even after the 1.4% COLA. The inflation
rate from January to September 2021 is at 4.9%
Would help with transition from semi-monthly to bi-weekly
paid 80 vs 86.66667 hours -8% less per check (Annual Pay stays the same)
We Budgeted 16% increase in 2022 on Health and Dental and can switch to new provider with no actual
premium increase in 2022
Staff Suggests an increase in city share of 3% and to do a budget adjustment and put additional budget savings back into
contingency
COST ANALYSIS
BUDGET ADJUSTMENT RECOMMENDED
BUDGET ADJUSTMENT RECOMMENDED
Budget Adjustments:
Salaries FT Increase $155,700
One-Time Lump Sum to FT employees
employed as of 11/17/21
Benefits Decrease $356,800
Contingency Increase $201,100
MOTIONS REQUESTED OF CITY COUNCIL
Staff and Mayor are seeking a Motion of the City Council to
accept the following:
Approval to move forward with change of Medical Insurance to Pacific
Source and to retain Blue Cross Dental
To increase the Employer deductions for Health/Dental by 3%
Approval of the One-Time Lump Sum Proposal as presented
Approval of the Budget Adjustment as presented