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„,trNiofw Report Number 13-071 Pl Agenda Section VI-4 the city that works for you Council Meeting Date March 26,2013 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Consideration of a Motion by the City Council to Support the Submittal of Letters to our Local State Representatives Stating the City's Opposition to the Statewide Teachers Health Insurance Pool Bill(Senate File 446 and House File 573) DEPARTMENT HEAD'S APPROVAL: Dean R.Lotter, City Manager CITY MANAGER'S APPROVAL: No comments to supplement this report Lc:�! Comments attached In 2008, the City of New Brighton joined the National Joint Powers Alliance(NJPA)service cooperative (Region 5 of Central Minnesota) for purchasing health insurance coverage for our staff members. The City of New Brighton has benefitted greatly over the last five years from being a member of NJPA through enhanced insurance benefits,wellness programs, and the ability to contain rising health insurance costs by purchasing insurance coverage as a group instead of a single government entity. A bill that would pool school employees into a statewide health plan has advanced in committees in the House and Senate.The proposal has been a high priority for Education Minnesota, the association that represents public school teachers. Proponents for the legislation,HF 573 (Rep.John Ward, DFL-Baxter) and SF 446(Sen. Scott Dibble,DFL-Minneapolis), argue that a statewide pool for school districts would lower health insurance premiums for all school employees. Opponents of this bill believe the measure, if enacted, would raise costs for many school districts, which currently have the option of negotiating with other entities such as cooperatives for health insurance coverage. The NJPA health insurance service cooperative is currently comprised of twenty-eight government entities(cities, counties,public utilities, and school districts). If this bill would pass the Minnesota state legislature, the NJPA service cooperative would lose thirteen of its current members. The loss of school districts in the service cooperative would have a negative financial impact on the NJPA health insurance service cooperative and could impact its ability to provide affordable insurance coverage to its existing members (such as the City of New Brighton). Over the years, service cooperatives have been very effective in controlling the rising costs of health insurance coverage through the power of government entities working together and using the buying power of a larger group. If school districts are not allowed to participate in service cooperatives,this will reduce the buying power of service cooperative members for purchasing affordable health insurance coverage in the years to come. Recommendation: Motion by the City Council to support the submittal of letters to our local state representatives stating the City's opposition to the Statewide Teachers Health Insurance Pool Bill(Senate File 446 and House File 573). Legislative History: None Financial Impact: None Dean R. Lotter City Manager I:\COUNCIL\REPORTS\20 13\Administration\Opposition to the SF 446 and House File 573-March 2013.doc