HomeMy WebLinkAboutAGENDA REPORT 1997 0205 CC REG ITEM 10B- - 100ae
AGENDA REPORT
CITY OF MOORPARK
�`5 7
TO: The Honorable City Council
FROM: Richard Hare, Deputy City Manager
DATE: January 29, 1997 (CC. Mtg 2/5/97)
RE: Consider Approval of Employee Assistance
Program (EAP) for Regular Full -time Employees
our former Employee Assistance Program was attached as a
rider with our Long Term Disability Program (LTD). When the
LTD provider raised rates to force small employers to drop
their coverage, the City of Moorpark switched LTD coverage
to another provider which did not have EAP coverage. Since
that time staff has been working with our insurance
consultant, Tolman and Wiker to find an acceptable EAP
provider.
Employee Assistance Program (EAP)
Employee Assistance Programs offer proactive problem solving
and preventative services. EAP's provide direct face -to-
face, telephone referral, and consultation services for
problems and issues such as alcohol and drug abuse, divorce,
family conflicts, legal, financial, child care difficulties
and much more.
Most EAP's provide three in- person sessions per incident for
the employee and their dependents. Additional services
would be contracted for by the employee. Some types of
consultations are also covered under our Principal Mutual
Health Insurance Program.
Utilization
Over the last three years, the EAP has provided monthly
newsletter information to all employees. Additionally, it
has been used on several occasions by supervisors for
consultations regarding personnel problems. On average
twelve sessions for individual consultations have been used
each year. The estimated average annual cost of these
services would have been approximately $3,000, but the
actual cost in premiums was $782.25
Proposals
We have received three proposals from the following
providers: 1) Health Management Systems of America (HMSA),
2) HCM Benefits provided through the Southern California
000247
Joint Powers Insurance Authority and, 3) The Holman Group.
Analysis
The HMSA proposal is the most expensive option. Although it
mirrors our previous program it would increase costs from
$1.75 per employee per month to $3.50 ($1,596 per year).
The HCM proposal is a much reduced EAP proposal. It costs
slightly more than our previous program ($1.82 versus $1.75)
but reduces the available services by limiting counseling to
three sessions every six months.
The Holman Group proposal expands the services provided in
the EAP but costs 43 percent more than our original program
($2.50 versus $1.75), a monthly premium of $95.00 per month
($1,140 per year) for all full -time employees. At that rate
the City would still save approximately $1,800 over the
actual cost of providing the service directly and it costs
less than the HMSA proposal.
We have been without coverage since July 1, 1996, and have
saved $864.50. If The Holman Group was selected as
recommended the estimated premiums for the last five months
of the fiscal year would be $475.00. There would still be
a savings this year of $323.00.
Recommendation
Staff recommends that the City Council authorize the City
Manager to enter into agreement with The Holman Group to
provide EAP services as proposed for $2.50 per full -time
employee per month effective March 1, 1997.
e:Md l
000246