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.