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Kasson council selects higher‑deductible medical plan with city HSA contribution and approves lower‑cost life policy
Summary
Council selected the 4,200/8,400 deductible medical plan with city HSA contribution as the best value and approved switching the employer-paid life policy to a Hartford $25,000 plan at a lower monthly cost; at least one council member opposed aspects of the changes.
City staff presented updated vendor quotes for employee medical plans and life insurance. After reviewing projected premium increases and employee cost-sharing, council voted to select the higher deductible plan (4,200 single / 8,400 family) paired with the city covering half of the deductible via HSA contributions, a move staff said will limit total employer cost increases while providing some HSA support for employees.
Separately, staff recommended replacing the city’s current employer‑paid life insurance arrangement with a Hartford policy offering $25,000 coverage at lower monthly cost; council approved that change as well. Council members asked staff to track enrollment counts (single vs. family) and to report back on actual fiscal effects after open enrollment.
Councilors noted that while the change reduces employer premiums, higher deductibles may increase out‑of‑pocket exposure for some employees; staff said employees can top up with HSAs and that the HSA contribution is intended to mitigate that effect.
