Memorandum                                         

City of Lawrence

Human Resources Division/City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Michelle Spreer, Benefits Specialist
CC:	Lori Carnahan, Human Resources Manager Diane Stoddard, Assistant City Manager
Date:	September 8, 2010
RE:	Healthcare Follow up for City Commission

This memo is in response to questions from the City Commission on September 7, 2010. Following is information regarding the City of Lawrence Health Care plan premiums compared to our market cities and mid-year vs. year end claims comparisons.

Market Survey – Healthcare Premiums

Data was compiled from our primary market cities for use in the Annual Compensation and Benefits Summit held on May 18, 2010. Market cities include; Lee’s Summit, Lenexa, Olathe, Overland Park, Shawnee, Topeka and WYCOKCK.

Two of the 7 market cities (WYCOKCK and Topeka) offer plans where the City pays 100% of the employee only premium. The remaining 5 cities subsidize nearly 75% of employee only premiums.

Well program information was not gathered from the market cities. Those cities that charge a premium for individual coverage may have wellness program incentives that allow employees to reduce their premium to zero with participation in the program.

All market cities subsidize dependent coverage by an average of 79%, with the exception of Topeka at 49%.

Claims History

The 5 year average of the City’s health care plan expenses at mid-year is 48% of the total expenses for the entire plan year. Expenses include medical, dental & Rx claims, admin costs and stop loss premiums. The attached chart compares mid-year costs to year end actual costs for 2005 - 2009.

Attachment

Health Care Plan – Mid-Year vs. Year End Actual Expenses