Staff recommends establishing the following maximum monthly contribution for eligible unrepresented employees and elected officials in 2016:

• $920 per month for employees enrolled in a copay health plan (+$10 from 2015)

• $1180 per month for employees enrolled in a deductible health plan (+$60 from 2015)

• Additional $80 per month contribution to the HRA or HSA of participants in a deductible health plan (no change from 2015)

The City of Apple Valley currently provides group medical, dental, and life insurance to employees in full-time positions designated in the Pay and Benefit Plan and elected officials. The City makes a maximum monthly contribution toward the selected benefits for eligible employees. An additional incentive contribution of $80 per month is made to the Health Reimbursement Arrangement (HRA) or Health Savings Account (HSA) of participants enrolled in a deductible health plan.

An open enrollment period is held each year to allow employees to make changes to certain benefits coverage. This year’s open enrollment period will be held November 2 - 13 for an effective date of January 1, 2016. In order for employees to make the best-informed decision during the open enrollment period, it is beneficial to communicate the monthly City contribution in advance.

The City is a member of the LOGIS health care consortium. In 2011, the LOGIS group solicited competitive bids for insurance and selected Blue Cross Blue Shield of Minnesota as the carrier beginning in 2012. The LOGIS group’s contract with Blue Cross Blue Shield includes rate caps through 2016.

The rates for the selected plans have been released from LOGIS. For 2016, the rates will increase by the cap of 11.5%. The LOGIS group's utilization of care services would have called for an increase of 16% if the rate cap were not in place.

For 2016, the City will continue to offer the same health plan options: a copay plan and two types of deductible plans. One type of deductible plan coordinates with an HRA, and the other type of deductible plan coordinates with an HSA. Currently, 86% of City employees participate in a deductible health plan. Preventive care is encouraged and promoted for all covered employees. Preventive health care is 100% covered with no deductible or copayment under all of the City’s health plan options.

The City's dental plan will remain with HealthPartners Dental, and the family dental monthly premium will increase by $10. Life insurance will remain with Sun Life and rates will not increase for 2016.

The City will offer employees several opportunities to learn more about group insurance plan options during the open enrollment period, including group sessions and individual meetings.