HomeMy WebLinkAbout25A - EMPLOYEE GROUP INSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
September 17, 2007
TITLE:
EMPLOYEE GROUP INSURANCE
RENEWALS
R w
MANAGE
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
^ As Recommended
^ As Amended
^ Ordinance on 1S' Reading
^ Ordinance on 2"d Reading
^ Implementing Resolution
^ Set Public Hearing For_
CONTINUED TO
FILE NUMBER
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 and
dental 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. AIG has agreed to
renew our life and accidental death & dismemberment insurance agreement
with a slight increase in cost for a two year period. AIG has agreed to
a rate pass on the current LTD and Supplemental Insurance plan rates
through December 31, 2008.
Life Insurance
Insurance Current Insurance Percent Change
Coverage Insurance Rate Renewal Rate
Life Insurance $0.13 per $1000 $0.15 per $1000 15.4%
Accidental Death $0.03 per $1000 $0.03 per $1000 0.0%
& Dismemberment
25A-1
Employee Group Insurance Renewals
September 17, 2007
Page 2
Delta Dental has agreed to renew our contract for a period of two years
with no rate increase. We are currently in the second year of a three
year contract with Safeguard Dental, and there will be no rate increase.
However the rates for United Healthcare Dental, who acquired Pacific
Union Dental during 2007, will increase 7% and are guaranteed for a
period of one year.
Dental Plans
Type of Coverage Safeguard Dental Safeguard Dental Percent
Current Rate Rate 2008 Change
Employee $25.28 $25.28 Oo
Employee Plus $43.22 $43.22 Oo
Family
Type of Coverage Pacific Union United Healthcare Percent Change
Current Rate Rate 2008
Employee $25.22 $26.99 7.Oo
Employee Plus $54.23 $58.03 7.Oo
Family
Type of Coverage Delta Dental Delta Dental Percent Change
Current Rate Rate 2008
Employee $48.39 $48.39 0.0%
Employee Plus $111.90 $111.90 O.Oo
Family
25A-2
Employee Group Insurance Renewals
September 17, 2007
Page 3
Ca1PERS Health Program
The CalPERS Health Program medical rates will increase overall premiums
by 6.30. This increase is nearly six percentage points lower than the
overall 2007 rate increase, and the smallest in a decade.
Plan Employee
Only Employee & 1
Dependent Employee & 2+
Dependents
Blue Shield Access+ HMO $447.97 $ 895.94 $1164.72
Blue Shield NetValue $401.98 $ 803.96 $1045.15
Kaiser $393.63 $ 787.26 $1023.44
PERSCare $712.71 $1425.42 $1853.05
PERSChoice $458.59 $ 917.18 $1192.33
PERSSelect $444.05 $ 888.10 $1154.53
PORAC(safety members) $452.00 $ 847.00 $1076.00
The City is entering into the third year of a three-year rate guarantee
with Reach Employee Assistance Plan. Retirees are not included in the
annual cost estimates. In addition, the Police Officers Association is
not included in the medical and dental projections since they maintain
their own insurance programs.
FISCAL IMPACT
The annual cost of each plan may vary depending on changes in the number
of employees enrolled during the year. The projected annual costs are
calculated using current enrollment as of July 2007.
AIG Life Insurance Company
Dental Carriers
Ca1PERS Medical
REACH (EAP Provider)
Total Annual Cost
2007
$ 265,358
$ 660,796
$7,976,933
$ 41,803
$8,994,890
2008
$ 279, 308
$ 763,402
$ 9,362,128
$ 41,803
$10,446,641
Difference
$ 13, 950
$ 102,606
$1,385,195
$ 0
$1,451,751
Funds in the amount of $10,446,641 are budgeted and available in the
Personnel Services Employee Benefits account (account no. 81-177-6521).
APPROVED AS TO FUNDS AND ACCOUNTS:
u -
Enrique J. Alv ~ k'rancisco Gutierrez ~
Execut~ e Dir ct r executive Director
Personnel Services Finance & Management Services Agency
25A-3 ~~
2 5A-4