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Home My WebLink AboutAGENDA REPORT 1990 1219 CC REG ITEM 08USUBJECT: HEALTH AND VISION INSURANCE RENEWALS BACKGROUND The City's employee health December 31, 1_990. and vision coverages expire on Shield. The vision nsurance There. will be no is held with Blue in�cx -e SP i11 jremium. The health insurance Insurance Company. coverage s heicl with Western Life last Jul P y• The City was not able to obtain a July for a term greater tha i s_Lx months. quote Western Life will only offex- a ,r. Once a Policy Period would be term _f six gain, from a months. The 1991. 1iIY 1991 to Ju MOORPARK U--,'PARK, iTEM-E--U. PAUL W. LAWRASON, make administration -. Mayor BERNARDO M. PEKE CALIFORNIA �o `� .:�t Cou I Meeting �,� �9�. y STEVEN KUENY Mayor Pro Tem SCOTT MONTGOMER r Councilmember ' ` City Manager CHERYL J. KANE JOHN E. ACTIC J: j City Attorney PATRICK WOZNIAK a ;; RICHARDS, A.I.C.P. Councilmember --T ° Director of LILLIAN KELLERMAN By �` Community Development City Clerk any the JOHN F. KNIPE 24 o since ria },mployees the City Engineer enrolling f� `, $ 96 per month JOHN V. GILLESPIE to Chief of Police M E M O R RICHARD T. HARE A N D U M City Treasurer TO: HONORABLE CITY =NCIL FROM: RICHARD HARE. DEPUTY CITY MANAG DATE: December 14, 19Q0 SUBJECT: HEALTH AND VISION INSURANCE RENEWALS BACKGROUND The City's employee health December 31, 1_990. and vision coverages expire on Shield. The vision nsurance There. will be no is held with Blue in�cx -e SP i11 jremium. The health insurance Insurance Company. coverage s heicl with Western Life last Jul P y• The City was not able to obtain a July for a term greater tha i s_Lx months. quote Western Life will only offex- a ,r. Once a Policy Period would be term _f six gain, from a months. The 1991. 1iIY 1991 to Ju Proposals have been received b%- t; `Joint Powers Insurance out}tern California Authorit. ! F:In; and the Coachella 799 M oorpark Avenue - - - -_ - Moorpark, (alrfc nia 93021 -- (805)529-6864 ne 30, This is an inconvenience and doe_: Policy more difficult make administration find another bidder four°cover, of st< ff has been the on level of coves es. he new unable to fe that will offer the rate: months reflect nine an ei an nc-ease Propo;;ed for the next same six ght percent increase in <iep( .an employee rate rzdErtt and The City's employee : ates. agreement increase in dependent Premium IOU) stipulates that employee, ek The dependent prem i",,. beginning edjng 20'- be Paid by - 'r "eased any the of the their dependents employee would 24 o since ria },mployees the have have i_ maintain coverac e t-,) f far their enrolling f� `, $ 96 per month de',(,r to OTHER PROPOSALS Proposals have been received b%- t; `Joint Powers Insurance out}tern California Authorit. ! F:In; and the Coachella 799 M oorpark Avenue - - - -_ - Moorpark, (alrfc nia 93021 -- (805)529-6864 COUNCIL REPORT Page 2 Valley Joint Powers Insuran -e Authority SCJPIA uses Calsurance and t'�e ;�VJPIA uses (CVJPIA). for their respective medical plans. The attached worksheets outlined the plan elements u::ed to compare coverages. The Western Care Plan not :_,nly offered to the employees, but is MOU COMPLIANCE, is superior in benefits also less costly. The MOU requires consultation with the employees prior to renewal of our coverages. The staff has complied with this requirement. Half of the employees carry dependent coverage and will be adversely impacte(° by this premium increase. RECOMMENDATION Based on authorizin g Shield for care. The VISION current information the staff recommends the City Manager_ to renew coverage with Blue vision care and w_th Western Life for following monthly rites would appl health Y• EMPLOYEE +1. )EP FAMILY $ 5.50 MAXIMUM 70 8.80 $ 14.30 HEALTH $ 188.03 =284.27 $472.30 Personnel costs on the whole are? less than budget estimates due to vacancies during the fist six months of the year. There are adequate budgeted funds in the entire increase in the 511 to cover therefore recommended that the e tirea�ncrease in de premiums. It is premiums be paid by the city for the Pendent year. This will maintain the integrityd of of the benefit package and will not unequally im act an employees for the remainder ,,f p Y one group of he buci jet year. EMP MED RATE DEP MED RATE COMBINED RATE EMP AD +D DEDUCT 1 DEDUCT 2+ COINS TO LEVELS PCS COPAY PREG AS ILLNESS EMP LIFE TERM INCREASE POTENTIAL PPO RESOURCES EMP MED RAT DEP MED RAT COMBINED RA EMP AD +D COINS PPO DEDUCTIBLE DEDUCT 1 DEDUCT 2+ COINS TO LE PCS COPAY PREG AS ILL EMP LIFE TERM WESTERN 5/1/89 143.78 228.59 372.37 0.06 7 0 100 300 80 %/5 K 3/5 YES 0.30 12 MTHS NEW WESTERN NEW RATE WESTERN iil,UE 'ROSS AUTHORITY 188.03 284.27 1(,3.18 145.97 472.30 344.56 '%:)6.69 369.17 average 0. 0 6) 43t >.54 515.14 10 "`) NA 0.05 30:) 100 200 80 %/5 I"', 300 400 5/ 30% 90 %/5 K Y �::: .100 F0 %l'.; K 3 7 0.34 _' E: S YES 6 MTI3: S MODERA`� 1; y MONTHS 0.38 12 MONTHS HI(:1H LOW MODERATE LOW 2 MTHf : 6 0.34 M'I HS LOW WESTERN 5/1/90 WESTERN NEW RATE 166.0£3 7/.1./90 1/1/91 258.7::. 17:;.81 188.03 424.7) 26 3.73 284.27 0.01 43t >.54 472.30 c' 06 0.0(3- 10.00 l0i) ' 0.00 300 1.00 100.00 80 %/5 ',l .100 F0 %l'.; K 300.00 5/c 80 %/5 K YE._: 5/7 0.34 4 ES YES 2 MTHf : 6 0.34 M'I HS 0.34 6 MTHS ESTIMATED COSTS FOR WESTERN CARE PLAN CITY I NC= EMPLOYEES' EMI' COST EMP CENSUS EMP ONLY 15 DEP COV DEP OF°TION TOTALS PER MONTH 228.55 96 $897 10 30 45.72 2820.45 4264.01> 1421,35 $8,506 SIX MONTHS 16922.7 25584.::; ANNUALIZED 8-')28.1 $51,035 33845.4 51168.6. 17C156.2 $102,070 COMPARISON OF PROGRAM COSTS WITH SI?,'ILIAR BENEFITS WESTERN CARE COST ON AN ANNUAL BASF, BLUE CROSS THREE TIER COST $102,070 BLUE CROSS COMPOSITE COST $112,067 SOUTHERN CALIFORNIA JPIA $127,800 $114,875 91 DEP RATE ACTUAL INC CITY I NC= EMPLOYEES' EMI' COST 89 DEP RATE 28 4.27 274.3:x_ SIX MONTH $ 0 DIFF 228.59 228.55 96 $897 CHG 55.68 45.72 0.24 0.2r;