HomeMy WebLinkAboutAGENDA REPORT 1989 0419 CC REG ITEM 08GELOISE BROWN
Mayor
BERNARDO M. PEREZ
Mayor Pro Tern
CLINT HARPER, Ph. D.
Council member
PAUL LAWRASON
Council member
SCOTT MONTGOMERY
Council member
RICHARD T. HARE
City Treasurer
TO:
FROM:
DATE:
SUBJECT:
Background
MOORPARK
MEMORANDUM
The Honorable City Council
Richard Hare, Deputy City Ma/~
April 14, 1989 {J_J
Health Insurance Proposals
ITEM 8.G:
STEVEN KUENY
City Manager
CHERYLJ. KANE
City Attorney
PATRICK RICHARDS, A.I.C.P.
Director of
Community Development
R. DENNIS DELZEIT
City Engineer
JOHN V. GILLESPIE
Chief of Police
The current health benefit plan for City employees is due to expire July
1, 1989. It was anticipated that renewal with our carrier, First Far
West, would result in a 60-80% increase in premium. Over the last
quarter, First Far West has encountered financial difficulties.
Therefore, Staff has worked w'ith the City's broker, Tolman & Wiker, Inc.
to solicit proposals for coverage from several reputable health insurance
companies, anticipating that First Far West would no longer be able to pay
claims. As of June 1, 1989, First Far West will cease processing claims.
Eight companies were asked to make proposa 1 s meeting the same benefits
offered by First Far West. Several firms declined to bid which is not
unusual in today's market given that we are a very small group. Of the
five that did bid, only Western Life substantially meets the current
benefits provided. Benefits consist of a $100 deductible, with a 100%
payment for services rendered from a preferred provider and an 80/20 split
of service costs from non-preferred providers. Western was also the only
firm which offers a prescription card service similar to our current plan.
This plan does, however, introduce the additional co-pay provision
requiring employees to pay $3.00 for each visit to the service provider.
The health insurance company considers this a cost containment provision.
799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864
The Honorable City Council
April 14, 1989
Page 2
The differences in rates are summarized below:
Current First Far West Rates Western Life
Employee 153.75 156.31
Spouse 141.06 171.75
Child 128.39 128.39
Family 269.45 300.14
Rates % Change
1. 7
21.8
-0-
11. 4
The maximum cost previously with First Far West would be $7,005.70 per
month, and under the Western Life Plan it would be $7,803.64, which
represents an 11% increase in maximum cost. Based upon our current
employee census and the mixture of single, married and married with
dependent employees, it is anticipated that costs will average
approximately $6,500 per month. Due to vacancies during the year, and the
modest difference in cost of the two plans, adequate funds are available
in this budget year for the May and June premium increases.
The Staff is continuing to review the health insurance market, pool
coverages, and cooperative agreements with larger employee groups. In the
event a more favorable arrangement becomes available, Staff would return
to the City Council with the proposal for conversion mid-year in this
12-month contract. In order to continue adequate health care coverage for
our employees, and to avoid the complications associated with the phasing
out of First Far West, it is very important that we transfer to another
carrier as soon as possible.
Staff Recommendation
Authorize the City Manager to enter into a 12-month agreement with Western
Life for employee group health insurance coverage effective May 1, 1989
per the terms of Western Life's Medsence proposal dated April 13, 1989.
RH:sc
894143
Attachments
MOORPARK, CALIFORNIA
City Council Meeting
of f-19 1981._
ACTIONr_G H.1--etU
}f.Vr{ ~
~~~~~~;;..;.;;. .....
59249 (9/88)
Founded in 1910, Western Life has a
heritage of financial stability spanning
eight decades. Based in St. Paul,
Minnesota, Western Life has been
consistently rated Excellent by A.M. Best
Company, the independent analysts of the
insurance industry.
Western Life's parent company, AMEY
Holdings, Inc., is a New York-based
financial services group with more than
$2 billion in assets. It is owned by N.Y.
AMEY of Utrecht, Netherlands, a
multinational firm with a history of
steady growth, dating all the way back to
its founding in 1847.
As part of the AMEY family, Western
Life is dedicated to providing the quality,
innovative insurance and financial
products and services you need to meet
the changing challenges of both today and
tomorrow.
..
[WFSr£1WJ
member AMEV-group
P.O. Box 64271
St. Paul, MN 55164
CITY OF MUORJ:'AKK _, __ ,_
: APRIL 12, 1989
COMPANY OED STOP
LOSS
,UE SHIELD 250 OUT OF
POCKET
)0 / 70' PLAN 1000 PPO . 1nno Nl,N ..
OUT OF
:lAVELERS 100 POCKET
• 1000
l.AN M 80/20
RAVELERS 100 ti
LAN Q
90/70
OUT OF
HE PRINCIPAL 100 POCKET
PO -$5.00 500
CO-PAY
OUT OF
ESTERN LIFE • 100 POCKET
MEDSENCE $3.00 1100
co-pay INDIV
NPPO f:10/?a
5~·Sh-;,/l
.
-~ -
.ETNA -DECLI NE NEED 25 LIVES
ILUE CROSS-DEC LINE
>ACIFIC MUTUAL -DECLI ~E
..... -·---------.__,,. -. -, -·· ,-
WTE: TRAVELER S RATES SUBJECT T
MEDICAL COST
.
EMP DEP FAMILY
ONLY (one)
140.~5 +148.08 +225.09
"
-·u
152.01 +228.33 +228.33
157. 72 +236.90 +236.90
176.28 +291.52 +291.52
128.39-CH
156.31 171. 75-SP 300.14
(INCLUDJ S $7.00 PC S CARD)
,().([
.
~o QUOTE ON MUNICI1 ALITIES
D TREND NCREASE IJ ~ EFFECT1' E
LIFE
AD&D
Cost
per
1000
.so
.29
II
.23
.44
DENTAL COST
EMP I DEP
ONLY (one)
FAMILY
t,;::; l l.MB.l UJ
MONTHLY
PREMIUM
.c,.:, .L .i.n.n.J...i;...u
MONTHLY
PREMIUM
PLAN.A 50 DED 80/80/501 I LIFE,MED, MATERNITY
26.94.+21.18 t+39.41' 941.75'•·.r ... ~-1 $5,343.11
PCS+221.17 VISION +224
26.3~ +33.08 1+33.08 I 964.34 !LIFE MED MATERNITY
II
50 D
17.8
II II
PLAN 1
38.27
II
791.78
546.20
$6,198.05
LIFE, MED, MATERNITY
$6,426.52_
LIFE, MED, MATERNITY
$7,691.62
PCS +547.92
LIFE, MED, MATERNITY
$6.405.15
DATE 1S AFTUR 4-13-89
Mt-:i,Hm MET):( Cl'il.. 11,munANCE
C X 'l Y OF 1"1001\f·•Anl<
1:w~ ·,uL.MnN ()HD vJif:J:h:
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M1:•~dlcn"ih:£? Non ··Mud:lc•n<:;c
P1rovi cfo-1 1·
DEOUCTlDLE $0
llc.i~.';pit., .. 1l C::PVf·li-E.':'d E')·(f)f':f'l'".,f:.'\'.:; ~,()
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F~MILY DCDUC11DL~
OUT· ·OF--f~•CJCKET MAX I MUMS
'.1:ncl:i vi c:luc-:11
Individual)
l Ni:\Uf:;Fl> F'LJ~C:El,l'T {-)Eil~
l·lu~:-pl t,,11 cov,:.':'rt::•cJ e:q:.r(;:1H.::.f~t:::.
Surgical cov~rad e~pmnse5
C1thr.•1· r. ovr-1r r,;:•d f~J-:pt-:·rH,,n~:;
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L:i. -r E?''.: i filf.• fiic:1}: i mum lH~rH~·f :i 1.:: :t-1, C,(10, 000. oc,
Pl.:,n .Lncl~.1dH~.,: Prt":'qr1i\ri(.::y 11.-\t·. iHIY ott-wr 5,.j,cknf',•s:.s.
F·l,J.n inc1uch:•r;~ Phat·lllclCf::utlccll C,:\rd S~t•vi,.::<.;• --, i7 CO· .. ·F'/)''Y'MFI\H
EMF'LDYEF L HT'. {)f·JD {\D&D I NEll lR{'1'-JCF
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GF•JJ!JP~ CITY OF MODf~fY1m,.:
7 rr:, r. 9;':0?1
fS1\K~iE~ HuNTHLV COST SUHHARY FOA t 100 OEOUCTIBLE
C:FFLCT:rvE
VFHt~ IOI'~
l'll-)Y
C:?-·9 ~ (H)
£HPLOYE£ COVERftGE \iOLlli'tEIEES RATE l'IO~THlY ~R£NIUH Hedic~l Pre~lut Breakd~tifi per E1ployee
~a~e S.A. Hat PCS
life anc llDtD S 285,000 0.44 1$1,000 12~.40
Dl!nPrn 20 lb.20 IE£ 324. oo...:
NajClr Nedic~l 2(1 15b,31 /EE 3112L20 153.75 o. (1(; 2,56 (1. (10
0£ PEN;)fNT [:OVERAGE YOLUl'IE/UIH l RnE NONTHL Y PRfHlUn Hedi[s! Prf~iuffi Breakdown ~er Unit
~ase S,A, Hat
renf'ro 5 38,27 /Sp~ Ch 191,35"
DenPru 2 1b, 34 /SpouH 3,.6&-'
DenPro I 21.93 /Chi Id 21, 93 ✓
llajor t'edical 7 300, 14 /Sp t [h 21100.98 269.~5 0,00 3(:, b9
ll3jor Medical 3 171. 75 /Spouse 515,25 Ht.Ob (1,00 30,69
M.1for Medical 4 JW,39 /Child 513.~b JZB.39 (1. 00 (I. 0(1
EMPLOYEE TOTAL $ 3,575,60
DEP£NDE~·T TOTAL t 3, 37~ .. 75
TOTAL NON1HLY PREMIUH $ 6,S'Sl.35
Tot~l pr~~iu~ for the tlSO Deductible plan is $6 1776.37.
ln-.i.ti~"-1 r·rd:1i•!'.!.-t.:tt"d ~•l'"c,r,ci!::·Pcl 4'o,·· :l'.2 mc1rit:hf:; hPl]:t.nrdni] 1-hi·' •/'jrr,;t rd M(,Y
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l.
SIGNlrirANl £;nv~NGS r~N Bl ~[ALIZED WITH A 6 MONTH RA"fE CYCL.E.
PCS
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D F !' E: N D E N l
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•• -· -SUMMA R'Y OF BENEFITS ---
---occur·-r,~ T 1 OI\I : CLFrU ChL ~ f;/< 1 LL..E}), Ul\lf.:'if,'. IL LJ:D
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THF L11r1r·AN\'' r~u:~t=:r.:v:·~:i:, THL fHGl·I! l"[l ACC!,::f-'T ur.: Fil:JECT ri1,JY cmnUF'
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