HomeMy Public PortalAboutAB01-130CITY COUNCIL City Of McCall
AGENDA BILL 216 East Park Street
Number AB 03-123 McCall, ID 83638
Date August 28, 2003
ITEM INFORMATION
SUBJECT:
Origi
nal Agenda Date & Bill No.
Department/Committee/Individual
Initials
Remarks
Health and Vision Insurance Policy Changes
A
Mayor / Council
P
City Manager
P
Finance
Director/City Clerk
Originator
R
Deputy City Clerk
O
Community Development
V
Police Chief
A
Public Works
L
Director of Golf & Parks Operations
COST IMPACT: $27,196 reduction in FY 2004 costs
S
Recreation Director
FUNDING SOURCE:
Airport Manager
FY 2004 Budget
Librarian
TIMELINE: Urgent
City Attorney
Other
SUMMARY STATEMENT:
The Benefits Committee has been researching costs of healthcare insurance in an effort to reduce the rate of cost increases without significantly lowering
the value of this employee benefit. The committee consists of employees from departments throughout the City and spouses of employees. With the assistance of our Health Care Broker
Reiman & Associates, we sought and received alternative proposals. The number of options available to the City is limited by the participation of local physicians, leaving Blue Cross
and Regence Blue Shield as the only viable options. However, the options available were reviewed, narrowed to twelve and then reviewed in detail by the Committee. After consideration
of the company’s financial condition, rate setting methods and market trends, as well as the plan benefits and costs, the Committee makes a unanimous recommendation. to switch employee
health insurance coverage from Regence to Blue Cross. The plan described in Attachment A as Option 2 (Column 4) provides the fewest changes to existing coverage and represents a cost
increase of 35% rather than the 49% required by our existing plan.
At the same time, the Committee reviewed options for continued Vision Care Insurance coverage. The current coverage
through Pacific Vision allows the employee to choose vision coverage or an equivalent amount of cash deposited in a FSA account. However, there have been significant problems with the
service provided by this company and there are questions about the long-term strength of the company. After extended discussion of three other alternatives, the Committee recommends
a change to Vision Service for coverage outlined in the far right column of Attachment B. In addition to a decrease in the coverage for frames and contact lenses, this plan requires
mandatory coverage of the employees, but allows optional coverage of dependents. In addition, the rate is guaranteed for two years. This change will increase the cost of coverage by
$.48 per employee per month, an increase that is 50% lower than that required to maintain our past coverage.
SUMMARY STATEMENT:
The Benefits Committee has been researching costs of healthcare insurance in an effort to reduce the rate of cost increases without significantly lowering the value
of this employee benefit. The committee consists of employees from departments throughout the City and spouses of employees. With the assistance of our Health Care Broker Reiman &
Associates, we sought and received alternative proposals. The number of options available to the City is limited by the participation of local physicians, leaving Blue Cross and Regence
Blue Shield as the only viable options. However, the options available were reviewed, narrowed to twelve and then reviewed in detail by the Committee. After consideration of the company’s
financial condition, rate setting methods and market trends, as well as the plan benefits and costs, the Committee makes a unanimous recommendation. to switch employee health insurance
coverage from Regence to Blue Cross. The plan described in Attachment A as Option 2 (Column 4) provides the fewest changes to existing coverage and represents a cost increase of 35%
rather than the 49% required by our existing plan.
At the same time, the Committee reviewed options for continued Vision Care Insurance coverage. The current coverage through Pacific
Vision allows the employee to choose vision coverage or an equivalent amount of cash deposited in a FSA account. However, there have been significant problems with the service provided
by this company and there are questions about the long-term strength of the company. After extended discussion of three other alternatives, the Committee recommends a change to Vision
Service for coverage outlined in the far right column of Attachment B. In addition to a decrease in the coverage for frames and contact lenses, this plan requires mandatory coverage
of the employees, but allows optional coverage of dependents. In addition, the rate is guaranteed for two years. This change will increase the cost of coverage by $.48 per employee
per month, an increase that is 50% lower than that required to maintain our past coverage.
RECOMMENDED ACTION: Approve switching from Regence Blue Shield to the Blue Cross plan
as described in Option 2 (Column 4) of Attachment A. Change from Pacific Vision to Vision Service, Plan B as described in the far right column of Attachment B for employee vision insurance
coverage.
RECORD OF COUNCIL ACTION
Meeting Date
Action