HomeMy WebLinkAbout25F - EMPLOYEE GROUP INSURANCE RENEWALS
REQUEST FOR
COUNCIL ACTION
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CITY COUNCIL MEETING DATE:
CLERK OF COUNCIL USE ONLY:
OCTOBER 3, 2005
TITLE
EMPLOYEE GROUP INSURANCE
RENEWALS
APPROVED
o As Recommended
o As Amended
o Ordinance on 1" Reading
o Ordinance on 2nc Reading
o Implementing Resolution
o Set Public Hearing For
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CIT 'MANA' ER ------
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Authorize the City Attorney to prepare and authorize the City Manager and
Clerk of the Council to execute agreements for employee group life and
accidental death & dismemberment, long-term disability, medical, dental
and employee assistance program insurance.
DISCUSSION
The City's employee group benefit policies, contracts, and agreements are
renewed annually on January 1. Currently we provide life and accidental
death & dismemberment coverage and long term disability insurance through
AIG Life Insurance Company for full-time employees. Although other
insurance benefit costs are increasing next year, AIG has agreed to renew
our life insurance and long-term disability agreements at a slight
premium decrease while maintaining the current benefit structure. The
rate reduction for the life insurance is for a one-year period, while the
rate reduction for the long-term disability is for a two-year period.
Life Insurance
Insurance Current Insurance Percent Change
Coverage Insurance Rate Renewal Rate
Life Insurance $0.175per $1000 $0.130 per $1000 -25.7%
Accidental Death $0.03 per $1000 $0.03 per $1000 0.0%
& Dismemberment
25F-1
Employee Group Insurance Renewals
October 3, 2005
Page 2
Long-Term Disability
Group Coverage Current Rate Renewal Rate Premium Change
Management $0.782 per $100 $0.78 per $100 -0.3%
Employees $10.39 $10.39 0.0%
130 day wait
Employees $15.93 $15.93 0.0%
60 day wait
The City will continue to offer the existing three dental plans, which
include one indemnity plan, Delta Dental and two prepaid plans Pacific
Union Dental and Safeguard. There is no rate increase in Pacific Union
Dental and Safeguard. However, Delta Dental will have an increase of
less than 2.0%. All rates are guaranteed for one year.
Dental Plans
Type of Coverage Safeguard Dental Safeguard Dental Percent
Previous Rate Rate 2006 Change
Employee $23.22 $23.22 0.0%
Employee Plus $39.79 $39.79 0.0%
Family
Type of Coverage Pacific Union Pacific Union Percent Change
Previous Rate Rate 2006
Employee $23.35 $23.35 0.0%
Employee Plus $50.21 $50.21 0.0%
Family
25F-2
Employee Group Insurance Renewals
October 3, 2005
Page 3
Type of Coverage Delta Delta Percent Change
Previous Rate Rate 2006
Employee $47.46 $48.39 1. 9%
Employee Plus $110.19 $111.90 1. 5%
Family
CalPERS Health Program
The CalPERS Health Program medical rates for Orange County will increase
an average of 6.8%. This slight increase is a result of the new regional
pricing structure implemented by CaIPERS.
Plan Employee Employee & 1 Employee & 2+
Only Dependent Dependents
Blue Shield Access+ HMO $357.67 $715.34 $ 929.94
Kaiser $320.55 $641.10 $ 833.43
PERSCare $646.74 $1293.48 $1681.52
PERSChoice $384.56 $769.12 $ 999.86
PORAC(safety members) $399.00 $748.00 $ 950.00
Retirees who pay the cost of coverage are not included in the annual cost
estimates. In addition, the Police Officers Association is not included
in the medical and dental proj ections since they maintain their own
insurance programs.
Employee Assistance Program - REACH Employee/Associate Assistance
The Employee Assistance Program assists employees and their eligible
dependents in handling problems that may be interfering with their
performance on the job. Consultation for problems such as alcohol and
drug abuse, marital and family problems are available. REACH currently
provides services under this program. The terms of the contract will
remain the same. The current fee is $1.85 per employee per month. This
rate guarantee is for a three year period.
25F-3
Employee Group Insurance Renewals
October 3, 2005
Page 4
FISCAL IMPACT
The annual cost of each plan may vary depending on changes in the number
of employees currently enrolled during the year. The projected annual
costs, using current enrollment as of July 2005 are:
AIG Life Insurance Company
Dental Carriers
CalPERS Medical
REACH (EAP Provider)
Total Annual Cost
$ 329,329
$ 572,460
$ 7,449,838
$ 41,803
$ 8,393,430
Funds in the amount of $8,393,430 are budgeted and available in the
Personnel Services Employee Benefits account (account no. 81-177-6521).
APPROVED AS TO FUNDS AND ACCOUNTS:
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Executlve Dlrector
Personnel Services
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~ranci~co G~tierrez
Executlve Dlrector
Finance & Mgmt. Services Agency~
25F-4