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• <br /> TOWN OF LOS ALTOS HILLS <br /> Staff Report to the City Council December 19, 2002 <br /> RE: Request for Amendment of Maximum Contribution to Employee Health <br /> Coverage Premiums <br /> FROM: Sarah Joiner, Administrative Services Director /1G7,,,,,2•,/ <br /> APPROVED: Maureen Cassingham, City Manager ('/\-t/ <br /> RECOMMENDATION: That the City Council approve the attached resolution which <br /> establishes new premium caps to apply to the cost of health insurance plans offered to Town <br /> employees for the.California Public Employees Retirement System (Ca1PERS) 2003 health <br /> benefit year. <br /> BACKGROUND: Each year staff reports to the Council the rates for employee health <br /> benefits offered through Ca1PERS. Annual health insurance premiums are reviewed for the <br /> purpose of establishing new caps—the maximum Town contribution towards each employee's <br /> premium—for the calendar year. In January, 2002 the annual calculation of these caps was <br /> revised and set at 110% of the average of the premiums of health plans available to <br /> employees. Utilizing this methodology, the new caps would be established as shown below: <br /> 2002 2003 <br /> Cap <br /> Employee/Retiree Only 269 377 <br /> Employee & 1 Dependent 538 754 <br /> Employee &2+Dependents 699 980 <br /> Increases in the Town's health insurance premium caps are indicative of substantial increases <br /> in health plan premiums throughout the nation. It should be noted that the premiums paid by <br /> the Town on behalf of its employees in 2003,based on employee enrollment selections, will <br /> average$268, $526, and$694 for employees, employees with one dependent, and employees <br /> with two or more employees respectively. This represents a 23% increase over calendar year <br /> 2002 premiums. <br /> attachment: Resolution Fixing the Employer's Contribution of Health Care <br /> Premium <br />