CCR2007229.
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COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #229-2007
AUTHORIZE EXECUTION OF HEALTH INSURANCE CONTRACT
FOR 2008
BE IT RESOLVED that the Common Council of the City of Muskego, upon the recommendation
of the Finance Committee, does hereby authorize the Mayor and Clerk-Treasurer to execute the
contract for health insurance for 2008 as follows:
WPS HEALTH INSURANCE
Type of Contract Monthly
Single Member
Limited Family
Family
Single Member Over Age 65 with Medicare
Member and Spouse Both Over Age 65
with Medicare
One Member Over Age 65 with Medicare and
One Member Under Age 65
$ 515.45
$1,112.34
$1,521.68
$ 386.59
$ 773.18
$ 902.04
BE IT FURTHER RESOLVED That the following are additional changes to the 2008 coverage:
. Deductible changed from $1,000 per individual/$2,000 per family to $2,000 per
individual/$4,000 per family with employee share to remain unchanged at $250 per
individual/$500 per family. The City will reimburse the difference of $1,750 per
individual/$3,500 per family.
Lifetime maximum of $2,000,000, currently $1,000,000
Unlimited routine office visits, currently $300 annual cap
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BE IT FURTHER RESOLVED That with these changes, the health plan benefits for 2008 are
equal to or greater than the benefits reflected in the City labor contracts.
DATED THIS 27TH DAY OF NOVEMBER ,2007.
SPONSORED BY:
FINANCE COMMITTEE
Ald. Bob Melcher
Ald. Neil Borgman
Ald. Keith Werner
This is to certify that this is a true and accurate copy of Resolution #229-2007 which was
adopted by the Common Council of the City of Muskego.
11/2007jmb
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W/f(pSò 4í .:a'-2-(JO 7
CITY OF MUSKEGO
Staff Report to Finance/Common Council
To: Common Council Re. Strategic Goal #: (for future use)
From City Administrator Presenter(s): Jennifer Sheiffe~
Subject: Topic for Presentation/Report to Common Council: Recommendation for
Approval of WPS Health Insurance Plan for 2008
Date: November 20, 2007
Background Information:
Annually, the City Council must approve the "purchase" of the health insurance plan for
the City. The City has chosen to purchase a health plan from WPS for the last few years.
The City has not had customer service issues with WPS which it did have prior to going
with WPS.
Premium amounts for 2007 and proposed for 2008 are attached as well as information on
employee contributions.
Key Points and/or Information for Discussion (Maximum of 5):
1. The City because of the health experience of plan participants combined with the ever
increasing costs of health care was given by WPS a proposed premium increase of
18.87% for 2008.
2. The City's current plan provides for deductibles of$l,OOO per individual/$2,000 per
family. Following receipt ofthe proposed premium increase of 18.87%, we requested
plan rates for 2008 with a further increase in deductible to $2,000 per individual/$4,000
per family (The employees share of the deductible remains unchanged at $250/$500).
With the higher deductible the rate increase would be 6.5% as opposed to 18.87%.
3. Two plan enhancements are being brought forward by the Administration: lifetime
maximum of 2 million as opposed to the current I million and unlimited routine office
visits as opposed to an annual CAP of $300 on routine office visits.
4. The 2008 total cost for the plan with the increased deductible based on our current
employee participation count (before deducting employee contributions) is estimated at
$1,352,385.
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Recommendation for Action by Common Council: I recommend to the Finance
Committee/Common Council that the City's current health insurance plan through WPS
be purchased for 2008 with the following three changes: increase lifetime maximum to 2
million, change the routine office visits to unlimited per member per year to unlimited,
and increase deductibles to $2,000 per individual/$4,000 per family.
Fiscal Note(s): The 2008 budgets (general fund, water and sewer) provide for the
18.87% increase in health insurance costs, so presently more dollars are included in the
budgets than would be needed with the recommended plan purchase.
Total $ Requested: To purchase health plan $1,352,385, plus dollars to pay for
reimbursements of City share of deductibles used.
Amount of Total Requested Budgeted: all
Amount of Total Requested Unbudgeted: 0
Expenditure Account(s) number recommended be used: various, costs spread across
Departments.
(11/07)
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Health Insurance Plan Rates
2007 Rates in Effect 2008 Renewal Rates with 3 Plan Changes
Monthly Monthly Annual
Single $ 484.00 $ 515.45 $ 6,185.40
Limited Family $1,044.47 $1,112.34 $13,348.08
Family $1,428.84 $1,521.68 $18,260.16
lOver $ 363.00 $ 386.59 $ 4,639.08
lOver II Under $ 847.00 $ 902.04 $10,824.48
Employee contributions toward monthly premiums noted above for 2008 would be:
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Note: Union Employees & likely non-represented employees will pay 8% of monthly
premiums up to CAPS of $45 for single plan, $68 for limited plan and $90 for family
plan.
For 2008, with rates noted above:
Single plan participants will pay the 8%, which is $41.24
Limited plan participants will pay the CAP of $68.00
Family plan participants will pay the CAP of $90.00
Employees contributions toward monthly premiums for 2007 are:
Note: Union employees & non-represented employees pay 7% of the monthly premiums
up to CAPS of $40 for single plan, $60 for limited plan and $80 for the family plan.
For 2007, employees are actually paying:
Single plan participants pay 7% which is $33.88
Limited plan participants pay the CAP of $60.00
Family plan participants pay the CAP of $80.00
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(11120/07)