The City offers employees health insurance through Medica. There are currently two plans to choose from, and within each plan there are three provider networks.

In late August, we received our health insurance renewal notice from Medica. The initial renewal was a 34% premium increase, but after some discussion/negotiation our broker secured a 29% increase. In analyzing the numbers, we still felt a 29% increase was too high. As a result, in September we asked other insurance providers to bid for our business.  Unfortunately, we learned the beginning of October that that no one bid for our business.

Based on the increase, Administration presented benefits information and recommendations to employees the week of October 16, 2017. Administration believes that it is best to move forward with three new networks – the Park Nicollet ACO, the Ridgeview ACO, and the Vantage ACO. The new networks would replace our Essential network, and they are more limited in scope however almost 60% of our employees have a primary care doctor that is within the Park Nicollet system. Employees will still have an option to upgrade to the Elect network, and the open Passport network at a higher cost.

Additionally, in the past the city split the employer’s contribution for health benefits into a formula – 100% for single, 88% for 2-party, and 72% for family coverage. This is antiquated method for applying the employer’s contribution. Starting in 2018, we have standardized the employer’s contribution - single coverage will receive $551 per month, 2-party will receive $935 and family coverage will be provided with $1,303 per month in employer’s contribution.

Administration thinks it is best to also include a new Plan in our offerings. Many employers are moving into an even higher deductible plan, and offering this new plan would provide our employees with even lower premiums. This plan would include a $2700 deductible for singles, and a $5,400 deductible for 2-party and families. We would keep our existing $1500/$3,000 High Deductible Plan, and our Traditional Plan, however the Traditional Plan would be more limited in nature, and have only two networks.

More information can be found in the attached 2018 Open Enrollment Guide.