WS Materials 09-04-2012 - Laserfiche WebLink

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Idllyct INEW BRICHICA the city that works for you Memo To: Dean Lotter, City Manager From: Schawn P. Johnson, Assistant to the City Manager Subject: Health Insurance for Permanent Part-Time and Council Members Date: August 30, 2012 City staff recently contacted our health insurance broker Alliance Benefit Group (ABG) and Health Partners to receive some additional information regarding the possibility of adding the City's ten permanent part-time employees to the City's insurance program. The following were the responses from Alliance Benefit Group regarding the ability of the City to allow permanent part-time employees to participate in our insurance program: Question 1-Does Health Partners and NJPA allow permanent part-time employees to participate in the employer's health insurance plan? Answer: Yes-the City of New Brighton may add permanent part-time employees to the City's health insurance employee eligibility list. The City would have to modify its employee eligibility language with Health Partners and NJPA. If this change is desired for 2013, City staff would have to notify Health Partners and NJPA of this change in employee eligibility prior to October 1st Question 2-By adding ten new potential employees to the pool could this impact the City's health insurance rates for 2013? Answer: Yes-each employee that would elect to participate in the City's health insurance program beginning On January 1, 2013 would have to go through Health Partners underwriting process, census, and complete health history questionnaires. Also, please note that the City of New Brighton would be required to make a financial contribution of 50% towards an employee's premium expenses (per our agreement with NJPA) if permanent part-time employees were added to the City's health insurance plan. Due to the 50% premium employer contribution H:\Assistant to the City Manager\Budget\2013 Budget\Council and Perm Part-Time Employee Benefit Overview-August 2012.doc