HomeMy WebLinkAboutSAFEGUARD HEALTH PLAN (2) -1994REQUEST FOR
COUNCIL ACTION
CITY COUNCIL August 1, 1994
MEETING DATE _ - -
PE GROUP
TITLE
INSURANCE RENEWALS
aucation
f 1
CITY MANAGER
RECOMMENDED ACTION
CLERK
F THE COUNCIL USE ONLY
,approved
E As e o r ended
As Amended (see Minutes)
Ord i nance on 1st Reading
Ord ianee on 2nd Reading
implementing Resolution
set Public Hearing For
Continued
FILE NUMBER(S):
4 4 j I Lo
Direct the City Attorney to prepare and authorize the Mayor and
Clerk of the Council to execute agreements for Employee Group
Insurance and Employee Assistance Program Renewals commencing
October 1, x 9 9 4 .
DISCUSSION
The City's employee group benefit policies, contracts, and
agreements are renewed annually on October 1. For the contract
year 1994--95, the City will experience for the first-time
decrease in the negotiated medical insurance rates with C GNA and
Health Net. Kaiser will experience a minor increase. However, the
overall annual cost to the City will decrease due to the resulting
rate reductions.
The various City Employee group benefit programs are listed below
with a summary of the rates on the succeeding pages.
ow Kaiser Foundation Healthplan
- CI NA Healthplan of California* Health Maintenance
organization CIA Staff) and Private Practice Plans
- Health Maintenance Network of Southern California (Health
Net)
Self- Funded Dental. Plan: R. E. Farrington Inc. Claims
Administrator
-- Safeguard Health Plan: Pre -Paid Dental. Benefits
entiCare : Pre-Paid Dental Benefits
Employee Assistance Program; LifeLink Plus EAP
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Employee Group Insurance Renewals
August 1, 1994
Page Two of Fire
All rates discussed in this memorandum are monthly and based on a
continuation of the existing benefits.
Ali PLANS
CIGNA Health lans
The City offers two CIGNA HMOs, a clinic type and an individual
practice type. Both plans are rated on a combined basis; thus
rates are the same, The renewal rates are substantially lower than
last year and maintain current benefit levels.
Health Net
The Health Net rates will remain unchanged for single coverage and will
decrease for family coverage, In addition, Health Net has provided a
two year rate guarantee. The plan benefits will remain unchanged,
092
C i"I
Employee Group Insurance Renewals
August 1, 1994
Page 'three of Five
Kaiser Foundation Health Plan
The Kaiser Plan for the 1994 -- contract year will increase rates only
slightly while maintaining all current benefit levels,
DENTAL PLATS
The City will conti
Employee Group Insurance renewals
August 1, 1994
Page Four of Five
Safeguard Health Plans ,- Prepaid Dental coverage
The 1994-95 contract year will be the third year of a three -year
guarantee it Safeguard. There will be no change n rates and
benefits. The rates are described below:
Self-Funded Dental Plan: R. E. Harrington, Inc. Claim Administrators
The rates for the City ,'s indemnity self- funded dental plan will be
increasing by This rate adjustment is based on claim experience
for the most recent twelve months (07/01/93-07/01/94). There has been
an increase in plan utilization during this period compared to the prior
year. These rates assume the same plan benefits. The rates are listed
below:
Current Ratesl
Renewal Rates
(10/0./93-
(10/01/94-
Percent Change
09/30/94)
09/30/95)
From Current
* Single
$ 12.84
$ 12.84
Oo
* Family
24.64
24.64
0%
Self-Funded Dental Plan: R. E. Harrington, Inc. Claim Administrators
The rates for the City ,'s indemnity self- funded dental plan will be
increasing by This rate adjustment is based on claim experience
for the most recent twelve months (07/01/93-07/01/94). There has been
an increase in plan utilization during this period compared to the prior
year. These rates assume the same plan benefits. The rates are listed
below:
The administration fee for these services will remain at $4.00 per
employee per month. This is competitive for self - funded plans of
similar size and complexity.
EMPLOYEE Ss TA PROGRAM
LifeLink Plus EAP - Employee Assistance Program Prodder
The Employee Assistance Program assists employees and eligible
dependents in handling problems that may be interfering with performance
on the job, Consu .tation for problems such as alcohol and drug abuse
and marital and family problems is available. There will be no change
in the cast for contract year 94-95, Currently the cost is $2 collars
per month per full- -time employee.
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Current Rates:
Renewal. Rates
(10/01/93-
1/019-
Percent Increase
09/30%94)
09/30/95)
From Current
Single
$ 32.26
$ 34.42
6,7%
Family
69.26
73.90
6s7%
The administration fee for these services will remain at $4.00 per
employee per month. This is competitive for self - funded plans of
similar size and complexity.
EMPLOYEE Ss TA PROGRAM
LifeLink Plus EAP - Employee Assistance Program Prodder
The Employee Assistance Program assists employees and eligible
dependents in handling problems that may be interfering with performance
on the job, Consu .tation for problems such as alcohol and drug abuse
and marital and family problems is available. There will be no change
in the cast for contract year 94-95, Currently the cost is $2 collars
per month per full- -time employee.
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Employee Group Insurance Renewals
August 1, 1994
Page Five of Five
FISCAL IMPACT
The projected annual costs, assuming active enrollment as of lr, 1994
are detailed elo *
]
The annual cost of each plan may Crary depending on
1. Changes es made during the Annual open Enrollment in September; and
2,o Monthly fluctuations in enr l.l.r ent ,
Retirees who pay the cost of coverage, are not included in the anal
cost f e timate . In addition, the Police officers Association P is
not included in the Medical and Dental pr-ojections projections since they manage
their ors insurance programs.
Ponds in the amount of $5,552,495.00 are budgeted and available in
Personnel services Employee Benefits (account no . 1 -177) .
F�
�r Mi-t-Francis
,Executive Director
Personnel Services
H. -\IBS DO 1 U1 . :KF:LEL :ck
APPROVED AS TO FUNDS AND ACCOUNTS$
Rod ma
Executive Director
Finance Mqmt . Services Agency
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