Work Session

CITY OF MARSHALL WORK SESSION MINUTES Tuesday, October 12, 2021 The work session of the Common Council of the City of Marshall was held October 12, 2021, at City Hall, 344 West Main Street. The meeting was called to order at 4:00 P.M. by Mayor Robert Byrnes. In addition to Byrnes the following members were in attendance: Craig Schafer, Steve Meister (4:39 PM), Don Edblom, John DeCramer, Russ Labat, and James Lozinski. Absent: None. Staff present included: Sharon Hanson, City Administrator; Annette Storm, Director of Administrative Services; Sheila Dubs, Human Resource Manager; Laura Wing, Payroll/ Benefits Specialist and Kyle Box, City Clerk. 2022 Health and Dental Insurance Renewal Human Resource Manager, Sheila Dubs introduced Bill Chukuske the city’s Broker for health and dental insurances. Chukuske provided 2022 renewal information and provide an overview of health insurance options. He has recently joined the firm of National Insurance Services. HEALTH INSURANCE: For 2020-2021, the Council approved a 2-year commitment with PEIP; this agreement had no rate guarantee in the 2nd year. Effective 01/01/2022, the City no longer has a commitment to continue with PEIP. The 2022 PEIP overall pool renewal is 9.0%. The City’s renewal rate for single coverage increased 9.47% and 9.38% for family coverage on the Advantage H.S.A. Option plan, PEIP’s high deductible health (HDHP) plan, which is the lowest cost plan offered to our group. The total premium rates are included in the on the last page of the PEIP renewal letter: see medical rates at the top of the page. (The City does not offer Dental or Life plans through PEIP.) During our 2-year commitment with PEIP, the City benefited by generally stable rate increases of 6.3% and 6.6%. Since our 2-year commitment with PEIP was ending this year, Bill completed a Request for Proposals on behalf of the City for health insurance options from other carriers for 2022. Bill will review a summary of the most cost-effective proposals received from these carriers. Each of the alternative plans Bill will review is a HDHP. Given the significant increase in rates from PEIP, Bill and Staff will not be recommending approval of PEIP plans for 2022. Staff will be recommending that the Council consider the lowest-cost, alternative plan option, which offers a 12% decrease in premiums compared to our current rates. Each of the alternative plan options requires a 2-year commitment and includes a 2023 rate cap. Staff will come back to the Council on October 26, at the regular Council meeting, to present 2022 plan and cost-share options for Council approval. DENTAL INSURANCE: The Delta Dental renewal came in at a 13.5% increase. Bill has negotiated a 4.0% rate increase on a 2-year renewal contract with Delta Dental. Bill will discuss the renewal in more detail at the meeting. Staff will bring in a cost sharing proposal to the Council for consideration on October 26th. OPEN ENROLLMENT INFORMATION: Staff will be requesting that the Council approve a cost-share option at the regularly scheduled Council meeting on October 26th. Employee Open Enrollment is planned for November 1-15. Employees will make their individual benefit elections on-line. Due to COVID-19, our benefit carriers will be available both virtually and by appointment for employees that desire additional information.  Work Session October 12, 2021 Minutes Page 2 of 2 Adjourn At 4:46, PM., Mayor Byrnes declared the work session adjourned. Mayor Attest: City Clerk