CR 88-146 Ghost Health Insurance Approval
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. July 15, 1988 - Council Rpt. 88-146
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Cll.OtJP REALTH INSURANCE APPROVAL - LOGIS HEALTH CARE PLAN
r.rQPosed Acti<>n
Staff recommends: that the City Council adopt the following motion: Move that the
Resolution 88-65, r.esol'1.tion approving oarticipation in the Local Govertunent
Information System's (LDGIS) ~ealth Care Gr.oup by the City of Hookins be approved.
The effect of this motion will be to approve the City's participation in a health
insurance consortium of 41 cities created for the purpose of providing cost-
effective health lnsurance fa:;: municipal employees.
Overview
Until 1987. th~ City of Eopkins provided health insurance to its employees through a
joint purcha.s:Ln~ arrangement with Hennepin County. The Ci ty was able to provide
three health care alternatives through that joint purchasing arrangement. In 1987.
Hennepin Count}' lIlade a decision to reduce its health insurance options to one
primary provider therebY'" forcing the cities who jointly purchased health insurance
through the ~QU~ty to eccept that choice or purchase insurance on their own.
The City of Itopkins and 40 other cities in Hennepin COI.mty decided to purchase
.. insurance 00 their own lmder a joint effort sponsored by (LOGIS) Local Government
Information Systeoos, an organization that has a joint powers relationship with many
cities for comput~r services. Initially this was to be a short term relationship.
established to preserve health insurance options. After significant additional
study howeve I' . Lt now .ppears that a continued working relationship through LbGIS is
in the best lnt~rest of the 41 cities that participate. Because of the size of our
group {2.500 e~p1<>yees) and our good experience rating, we were able to retain .our
three optioo& and fairly competitive prices.
In order to c()[\t:inue with the LOGIS group, the City must adopt the attached
resolution.
Issues to Const~cr
The City Council has tbe following issues to consider:
0 Is this in the best interest of the City of Hopkins?
Forty-one cities have :retained a consultant to analyze our options and make a
recommendation. It: 'Was recommended that ....e continue to purchase jointly and that we
formalize our consor tiUl'1l unde r LOGIS. This will enable our employees to continue
their current doctor-patient relationships an9 our health care premium costs will be
competitive.
0 What ~ther ~ptions are available?
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The City could choose to purchase insurance on its own, however, due to the small
size of our grQu?, our <:osts would inevitably rise. The City could also choose to
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. purchase through the County, however, that would mean eliminating health care
options for our employees.
AttAchments
0 Resolution
0 Eligibility requirements
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Craig R. Rapp
City Manager
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. CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 88-65
RESOLUTION APPROVING PARTICIPATION IN THE LOCAL GOVERNMENT
INFORMATION SYSTEMS (LOGIS) HEALTH CARE GROUP BY THE CITY OF
HOPKINS
WHEREAS, a number of communities of the state of Minnesota
identified benefits including cost, effectiveness and
efficiency of joining together to cooperatively provide for
the establishment, operation and maintenance of employee
benefit programs to the benefit of the parties and others;
and
WHEREAS, the consortium has further determined that a
necessary adjunct of management information systems is
providing information and data pertaining to health care
options as part of employee benefits; and
WHEREAS, them members of LeGIS hays determined through their
Executive Committee that the management of information
pertaining to health care options is interwoven with the
. selection and operation of such plans ana_that joi.ntly
oontracting for such plan operation is a necessary and
appropriate role for LeGIS; and
WHEREAS, The City of Hopk.ins has determined that it is to
its benefit to participate in LOGIS as an associate member
with the intent of participating in the coordination of
employee health care planning and service selection;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the ,.
City of Hopkins authorize the City Manager to execute the
LeGIS joint and cooperative agreement.
Adopted this 19th day of July, 1988
Donald J. Milbert, Mayor
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