The St. Michael City Council authorized switching health care providers after the new provider quoted a 20 percent lower cost.
City administrator Steve Bot said quotes for medical insurance were received, with Health Partners providing the lowest quote at almost 20 percent less than current rates. He said the coverage and plans offered would be similar to the current plans.
Bot added that a staff meeting was conducted with all city employees to inform them of the proposed change. He said the Affordable Health Care Act would like have implications on next year’s health insurance renewal, but that the city would at least see some savings during the next year for medical rates.
Mayor Jerry Zachman and council members Kevin Kasel, Joe Marx and Chris Schumm authorized switching to Health Partners.
In other action, the council:
HEARD that since the youth hockey association has turned its focus to an outdoor rink instead of a second sheet of ice, the consensus of the council was to remove a fundraising sign hanging in the south lobby of the City Center.
HEARD citizen inquiry from resident Layne Roschen. Roschen asked about additional revenue that the city could see in 2014 from the new legislative local government aid formula, and sales tax exempt status for cities reinstated. Councilor Kasel said those revenues would be helpful for certain funds, but that the staff and council would view it as one-time revenue, since the legislature may make changes to the formula again in the future.
SET a special budget work session for Tuesday, July 30, at 7 p.m.