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HomeMy Public PortalAboutResolution 1228RESOLUTION NO. 1228 A RESOLUTION EXTENDING THE PERIOD OF PARTICIPATION IN THE SOUTHWEST AGENCY FOR HEALTH MANAGEMENT FOR A PERIOD OF THREE ADDITIONAL YEARS. WHEREAS, the Village of Plainfield did previously through the passage of Ordinance No. 1397, become a member of the Southwest Agency for Health Management (SWAHM) which is an Intergovernmental entity providing employee benefits to the officers and employees of this municipality; and WHEREAS, through its membership in SWAHM, this Intergovernmental entity gains the ability to achieve economics of scale in the administration of the benefit claims of its requisite Members and the other benefits of membership provided for in the Contract and by-laws between SWAHM and Intergovernmental Personnel Benefit Cooperative ("Cooperative"); and WHEREAS, the Contract and by-laws of SWAHM provide that SWAHM shall operate in three (3) year cycles with the governing board and each Member being required to pass an ordinance or resolution agreeing to continue as a Member for the new three-year cycle; and WHEREAS, failure to pass a timely ordinance or resolution, at least ninety (90) days before the commencement date of a new three-year cycle shall constitute withdrawal from S WARM; and WHEREAS, the next three-year cycle of SWAHM and the Cooperative commences on July 1, 1999; and WHEREAS, this municipality desires to express, through the passage of this Resolution, its desire to continue as a Member of the SWARM for the three-year cycle commencing on July 1, 1999, provided that an adequate number of other Members of the SWARM, as is set forth within the Contract and by-laws document, also agree to continue as Members for the next three-year cycle; NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES, as follows: SECTION 1: The Village of Plainfield shall continue as a member of the Southwest Agency for Health Management for athree-year term commencing on July 1, 1999, in accordance with the Contract and by-laws of that entity as they currently exist or as they may be validly amended in the future. SECTION 2: The obligation of the Village of Plainfield to be a Member of the Southwest Agency for Health Management shall obligate the Village of Plainfield to make financial contributions to the Southwest Agency for Health Management only to the extent required from time-to-time by the Contract and by-laws of the SWAHM. SECTION 3: This resolution shall take effect immediately upon its passage and approval as provided by law. PASSED this 19 day of April _ , 1999. AYES: Rathbun, Darnell, Smolich, Dement, O'Connell. NAYS: p ABSENT: Stelzer APPROVED this 19 day of April , 1999. Vi lage President ATTEST: Richard A. Rock PRE81pENT TRUSTEES Jay D. Darnell VILLAGE OF PLAINFIELD Jeffrey Dement Kathy O'Connell WILL COUNTY'S OLDEST COMMUNITY Steven I_. Rathbun Raymond Smalich Kurt Stelzer Susan Janik VILLAGE CLERK April 13, 1999 To: Mayor Rock and the Village Board of Trustees From: Chris Minick, Finance Directo Subject: SWARM Renewal Every three years, the Village must renew its commitment to the Southwest Agency for Health Management (SWARM), the Village's health care plan for its full time employees. The commitment is for an additional three-year period. The total premium. for the Village as a whole has increased by approximately $100 per month or .33%. The individual monthly rates break down as follows: HMO Rates 1999-2000 1998-1999 Single $169.08 $164.15 Family $505.51 $490.79 PPO Rates Single $240.46 $251.76 Family $610.54 $641.33 Life Insurance $.20 $.20 Dental Insurance Single $18.97 $18.09 Family $51.04 $48.62 All administrative fees have been accounted for in the above analysis. As the table reflects, the cost for the PPO insurance plan is decreasing for the 1999-2000 renewal year. The rate for the HMO plan is increasing. Due to the mix of the Village's employees, (more are in HMO than PPO) the actual total health insurance premiums for the Village are increasing by approximately $1,200 for the year. The premium listed above is a one-year premium and will change during the other two years of the renewal. Historically, the pool has done very well in regards to rate 23145 W. LINCOLN HIGHWAY • PLAINFlELD. ILLINOIS 60544 • (815) 436-7093 • Fax (815) 436-195D increases. Including the proposed rates for the 1999-2000 renewal year, the rate increases for the Village of Plainfield have averaged 1.24% per year over the four-yeaz period from 1996-1997 plan yeaz through the 1999-2000 plan year. Industry wide increases for the same four-year period averaged 2.725% per yeaz. (Source: Jan. 2S, 1999 edition of Business Insurance a health care publication published by Crains Communications.) Staff has not received significant complaints regazding the health care plans in effect. Staff has also had no major problems in dealing with the customer service personnel at the HMO and PPO companies. The plans as currently structured offer employees a choice of plans and doctors. Employees also have the option of supplementing the insurance coverage the Village provides by purchasing supplemental insurance through AFLAC at the employee's expense. The AFLAC insurance provides for help with deductibles and copayments. Enclosed is a resolution to renew the Village's participation in the SWAHM for athree- yeaz period ending June 30, 2002. Staff is requesting that the Board formally approve the resolution, and extend participation in the SWAHM pool for the next three yeazs.