November 4 - City of Hays, KS

Benefit Committee thoroughly researched information submitted and is recommending to
the City Manager a partially self funded dual option plan for all city employees in 2011.
City Management concurs with this recommendation. The plan realizes a -10.76%
decrease in the high deductible plan and .24% increase in the traditional plan.
The High Deductible Health Plan will be the no cost option with 100% of the premium
paid. This option includes Health Savings Account with city contributions of $1700 for
family participants and $850 for single participants.
The second option available to employees is the traditional plan which was offered to
employees last year with no change in benefits. This option is the buy up option with
employee premium contributions amounting to the difference between the two plans.
Legal Consideration
There are no known legal obstacles to proceeding as recommended.
Financial Consideration
The health insurance options presented meets the Commissions directive of $9,500 per
average employee cap while providing the employee a no cost option with a funded
health savings account and an alternative traditional plan with a buy up. The dual option
provides for mill levy stabilization while presenting health insurance options to the
employee.
Options
This issue is present to the City Commission with the following options:
Approve the 2011 Health Insurance Blue Cross & Blue Shield with Dual Option
Plan.
Move the issue to the next work session for further review.
Do nothing.
Deny the request.
Recommendation
City staff as well as the Wage and Benefit Committee recommend approving the 2011
Health Insurance with Blue Cross & Blue Shield with Dual Option Plan.
Action Requested
Staff requests the approval of the 2011 Health Insurance as recommended.
Supporting Documentation
2011 Health Insurance Bids
Benefits/Projected Cost Comparison
2011 Blue Cross & Blue Shield Contract
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