1. Health Insuranceham{{
City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406) 758-7000 Fax - (406) 758-7758
REPORT TO: Honorable Mayor and City Council
FROM: Chris Kukulski, City Manager
SUBJECT: Health Insurance
MEETING DATE: June 28, 2004
BACKGROUND: During Monday evenings discussion there appeared to be a consensus in
moving forward with the Health Insurance Committee's recommendations regarding what the
cost share should be for two party; single parent with dependents and family coverage however,
there was much debate over the single employee share. The attached spreadsheet has three
options for cost sharing the health insurance premiums for the single employee category.
The debate seemed to be between covering the entire cost of the employee, having the single
employee pay $50 per month or something in between which we presented you with as being a
$25 option per month option.
There also seemed to be some consensus that if the Council chose to adjust the single employee's
share that the decision should not negatively impact the employee's share of the two-party,
single parent w/ dependents or family premiums. Therefore we have presented to you the cost
differentials of the three choices. The $25 per month option will add $10,800 ($25 x
36employees x 12months = S10,800) and the $0 per month option will add $21,600 ($50 x 36 x
12 = $21,600) in total costs for the City.
RECOMMENDATION: The City Council make a motion adopting either Plan A, Plan B or
Plan C and authorize the City Manager to sign a contract with Blue Cross/Blue Shield.
FISCAL EFFECTS: The $25 per month option will add $10,800 and the $0 per month option
will add $21,600 in total costs for the City.
Respectfully submitted,
1
Chris A. Kukulski
City Manager
066/21/04
HEALTH COMMITTEE - recommended rate structure
PLAN A
Fully Funded Blue Choice 70130
plan
plus $125,000 run out
FYI
2004 rates
RATE CITY
EMP
RATE
CITY
EMP
$ 464.00 $ 414.00
$ 50.00
single
$ 364.00
$ 364.00
$ -
$ 770.00 $ 695.00
$ 75A0
emprchiidren
$ 915.00 $ 815.00
$ 100.00
2-party
$ 120,00
$ 656.50
$ 63.50
$ 1,053.00 $ 903.00
$ 150.00
family
$ 834.00
$ 731.50
$ 102.50
Retirees -medicare
100%
Retirees -medicare
100%
$ 285.87 $ -
$ 285.87
$ 196.00
$ -
$ 196.00
$ 571.74 $ -
$ 571.74
IS 315.00
$ -
$ 375.00
Fully Funded Blue Choice70/30 plan
plus
$125,000 run out
FYI
2004 rates
RATE
CITY
EMP
RATE
CITY
EMP
$
464.00
$ 43%00
$
25.00
*single
$ 364.00
$ 364.00
$
$
710.00
$ 695.00
$
75.00
emptchildren
$
915.00
$ 815.00
$
100.00
2-party
$ 720.00
$ 656.50
$ 63.50
$
1,053.00
$ 903.00
$
150.00
family
$ 834.00
$ 731.50
$ 102.50
Retirees -medicare
100%
Retirees -medicare
100%
$
285.87
$ -
$
285.87
$ 196.00
$ -
$ 196.00
$
57€.74
$ -
$
571.74
$ 375.00
$ -
$ 375.00
*Additional cost to the City for the above is $10,800
51
Fully Funded Blue Choice 70/30 plan
plus $125,000 sun out
FYI
2004 rates
IRATE CITY
EMP
RATE
CITY
EMP
$ 464.00 $ 464.00
$
-
*single
$ 364.00
$ 364.00
$
$ 770.00 $ 695.00
$
75.00
emp;'children
$ 915.00 $ 815.00
$
100.00
2-p
$ 720,00
$ 656.50
$ 63,50
$ 1,053.00 $ 903.00
$
150.00
family
$ 834.00
$ 131.50
$ 102.50
Retirees -medicare
100%
Retirees -medicare
100%
$ 285.87 $ -
$
285.87
$ 196.00
$ -
$ 196.00
$ 57L74 $ -
$
571.74
$ 375,00
$ -
$ 375.00
*Additional cast to the Citv for the above is $21,600