25A - AGMT - EMPLOYEE INSURANCE RENEWALS

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Employee Group Insurance Renewals October 3, 2011 Page 4 Employee Assistance Program - REACH Employee/Associate Assistance The Employee Assistance Program (EAP) assists employees and their eligible dependents in handling problems that may be interfering with their performance on the job. Consultation for problems such as alcohol and drug abuse, marital and family problems are available. REACH currently provides services under this program. Bids were solicited for a new EAP provider to ensure that the rates from REACH continue to be competitive based on the current market. The service level from REACH has been superior and the contract will be renewed with REACH. The terms of the contract will remain the same. The current fee is $1.85 per employee per month based on 1,550 employees. REACH has agreed to renew this contract for a three year period with no increase. Retirees are not included in the annual cost estimates. The Police Officers Association maintains their own insurance programs for medical, dental and LTD coverage. The Firemen's Benevolent Association maintains their own insurance program for LTD coverage. FISCAL IMPACT The annual cost of each plan may vary depending on changes in the number of employees enrolled during the year. The projected annual costs are calculated using current enrollment as of July 2011. Coverage for POA (Sworn and Non-Sworn) 2011 2012 Difference Aetna Life/POA LTD Insurance $ 455,730 $ 439,753 $ - 15,977 POA Dental $ 594,000 $ 574,560 $ - 19,440 POA Medical $ 6,688,836 $ 6,940,940 $ 252,104 REACH (EAP Provider) $ 12,210 $ 11,810 $ - 400 Total Annual Cost $ 7,750,776 $ 7,967,063 $ 216,287 Coverage for FBA (Sworn and Non-Sworn) 2011 2012 Difference Aetna Life/FBA LTD Insurance $ 153,922 $ 152,853 $ - 1,069 Dental Carriers $ 154,857 $ 158,374 $ 3,517 CalPERS Medical $ 2,570,016 $ 2,752,991 $ 182,975 REACH (EAP Provider) $ 4,551 $ 4,529 $ - 22 Total Annual Cost $ 2,883,346 $ 3,068,747 $ 185,401 25A-4