DEPARTMENT: Human Resources
FILE TYPE: Regular Action
TITLE
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Approval Of 2027 Medical Plans And Premium Rates
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RESOLUTION
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WHEREAS, proposed premium rates for 2027 have been identified considering utilization and claims experience of the three Plans, medical trend, Affordable Care Act fees, and administrative expenses; and
WHEREAS, self-funded medical plan expenses projected for 2027 result in an aggregate rate increase of 9.10%; and
WHEREAS, due to 2027 Internal Revenue Service (IRS) limit changes in minimum deductibles for High-Deductible Health Plans, the Dakota Health Savings Account (HSA) plan will have an increase in deductible, $1750 for single and $3500 for family; and
WHEREAS, this change will increase the County annual HSA contribution to $875 for single and $1750 for family enrollment.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby approves the aggregate rate increase overall of 9.10% to the self funded medical plan, Dakota Advantage Plan will increase by 11%, Dakota Select Plan by 7.25% and the Dakota Health Savings Account Plan will increase by 5.25%; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby approves the Dakota Health Savings Account medical plan increase in deductible; $1750 Single and $3500 Family set by the IRS which increases the County annual HSA contribution to $875 for single and $1750 for family enrollment.
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BACKGROUND
The County’s self-funded medical plan is administered by Blue Cross Blue Shield of Minnesota. The County continues to offer three medical plan options to employees. The County’s base plan is the Dakota Advantage Plan which is a low deductible plan with a Health Reimbursement Account and in which most employees are enrolled. The two optional plan offerings are the Dakota Select Plan—a low-deductible plan with a Health Reimbursement Account—and the Dakota Health Savings Account Plan, a high-deductible plan with a Health Savin...
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