HomeMy Public PortalAboutAB 03-125 Health Ins ChangeCITY COUNCIL City Of McCall
AGENDA BILL 216 East Park Street
Number AB 03-125 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: $47,167 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 Benefits 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 Benefits Committee. After
consideration of the company’s financial condition, rate setting methods and market trends, as well as the plan benefits and costs, the Benefits Committee makes a unanimous recommendation.
to switch employee health insurance coverage from Regence to Blue Cross. The recommended plan described in the shaded column of the attached document 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 Benefits 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 Benefits Committee recommends a change to Vision Service for coverage outlined in the shaded column of the attachment. 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 continue with our past coverage and provider.
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 Benefits 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 Benefits Committee. After consideration
of the company’s financial condition, rate setting methods and market trends, as well as the plan benefits and costs, the Benefits Committee makes a unanimous recommendation. to switch
employee health insurance coverage from Regence to Blue Cross. The recommended plan described in the shaded column of the attached document 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 Benefits 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 Benefits Committee recommends a change to Vision Service for coverage outlined in the shaded column of the attachment. 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 continue with our past coverage and provider.
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. Direct staff to take all actions required to make this change effective October 1, 2003 and authorize the
Mayor to sign all necessary documents.
RECORD OF COUNCIL ACTION
Meeting Date
Action
August 28, 2003
Approved Consent Agenda