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Health Benefits Information provided to City Council
Health Benefit Changes Adopted By City Council July 30, 2004

The City's health benefit design and funding have been the topic of recent study, analysis and City Council deliberation. On Friday July 30, in the second of two special Council work sessions, City Council approved several adjustments to be effective with the beginning of the plan year (January 1, 2005). These changes are summarized in the attached document.

Additionally, City Council directed that the following current year's practices remain in place through 2005 and until further review.

1. The current blended premium structure continues. This means that employees and retirees will continue to reside in the same "pool" for rate setting purposes rather than being separated by their claim costs based on category (employee; retiree <65; retiree > 65)

2. The current subsidy percentages for active employees, retirees and dependents will continue. This means the percentage of total monthly premium that the City pays and the percentage of total monthly premium that the employee or retiree pays will continue as it is now.

Next Steps: Rates for 2005 will be calculated over the next two weeks. At that time, a more formal communication to employees and retirees will be distributed including specific rate information for 2005 and the logistics of open enrollment meetings and related activities.

City Council Approved Changes (pdf)

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