HomeMy WebLinkAboutSTANDARD INSURANCE CO. (2)REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE.
SEPTEMBER 8. 1998
TITLE.
EMPLOYEE GROUP
INSURANCE RO FRA
CLERK OF COUNCIL USE ONLYS
I-1P Y
As Recommended S 1998
As Amended
] ordinance on I st Reading
0 ordinance on 2nd Reading
LI Implementing Resolution
LJ Set Public bearing For
CONTINUED To
BILE NUMBER MANAGER
mom
913,cff�, 98 -053
RECOMMENDED ACTION
1 Direct the City Attorney to prepare and authorize the Mayor and Clerk of
the Council to execute renewal agreements for employee group Life
insurance, Long -Term Disability 'insurance, iedica . insurance, Dental
insurance and Employee Assistance Program,
2. Direct the City Attorney to prepare and authorize the Mayor and Clerk
of the Council to execute a new agreement with Delta Dental Insurance.
3. Adopt a resolution that allows the City of Santa Ana to elect to
participate in the Calif ornia Public Employees Retirement System
Cal Health Program, to provide Tnedical benefits for members of the
following bargaining units: Unrepresented Executive Management and
Middle Management; Police Management Association; Administrative
Management; Una iliated Confidential. and Santa Aria City Employees,
Association/ service Employees International Union Local. 347,, AFL-CIO,
C C commencing January 1, 1999.
DISCUSSION
The City's employee group benefit policies, contracts and agreements are
renewed annually on October 1. This year the City will renew the Employee
Group Life, Long -Term Disability and Employee Assistance Program providers
with no increase in costs. r � -13/
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Employee Group Insurance Program
September 8,
Page 2
Life Insurance
The current carrier is Prudential Life Insurance. We are in the second year
of a three year rate guarantee. Benefits and cost will remain unchanged.
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$12.22/employee
$0035
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Standard Insurance - Long Term Disability /Y-
our long term disability insurance rates will not increase this gear. The
cost is shared by the City and employees in accordance with Resolutions and
Memoranda of Understanding. The Santa Ana Fireman's Benevolent Association
and the Santa Ana Police Officer's Association each maintain their own long
term disability policies.
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$12.22/employee
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$6,52/employee
da-
Pa cifi acre Behavioral Healthe Inc* " Employee Assistance Program
The Employee Assistance Program 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. Services under this
program are currently provided by Pac i f ire Behavioral Health, Inc* The
terms of the contract will remain the same, including the current fee of
$2.00 per employee per month.
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Employee Group Insurance Program
September 8, 1998
Page
Dental Plans
Bids were solicit d for a new dental insurance carrier because the initial
renewal rate received from our current dental carrier reflected
increaseo As a result of the ]yid process, Delta Dental was selected as the
dental indemnit r plan provider. Safeguard Dental and Denti are Dental were
selected to remain our pre -paid Dental plan providers. These selections
reflect lowest laid, duplication and/or improved benefit levels in our current
plan.
enticare Dental Plan
safeguard Dental Plan
Delta Dental Plan
An agreement to extend the contract with American Benefit Plan Administrators
is necessary in order* to run out claims against our current indemnity self -
funded dental program which-Delta Dental will replace.
075
Employee Croup Insurance Program
September 8, 1998
Pace
Medical Plans
The CjLty currently offers two HMO plans; Kaiser and Health Net. A new
employee Health Plan has been approved by the City Council as part of the
terms and conditions s o the Memorandum o Understanding and Agreements with
various City Employee bargaining units. Effective January 1, 1999 we will
cease our current HMO plans and cover our employees through the CalPERS
Health Plan offering over tern medical insurance carriers . In order to provide
for this transition a renewal of our current Kaiser and Health Net HMO plans
is necessary for three months, from October 1 - December 31, 19980
Kaiser Foundation Health Plan
(October I - December 31, 1998
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IEW
$148 64
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Ca1PER8 Health Plan
(Effective January 11 1999)
The CalPERS Health Program will commence January 1, 1999 or as soon as
practical thereafter. This program allows members to choose from over tern
medical plans. Two plans, PERSCare and PERSChoice, allow members to pick
their own doctor. The following chart provides a summary of the Cal RS
Health Plan rates,
0 T
Employee Group Insurance Program
September 8, 19 9 8
Page 5
CalPERS Health Plan
(Effective January 1,, 19993
mnn Z-S%M1R*
ti
R-N
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-n
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� W M.
�Aetna U.S. Healthcare
$167.73
$335.46
$436,11
Blue Shield Access+ HMO
$170.11
$34 .22
$442,28
Cigna
$163,37
$326,75
+$424*77
Health Net
$164w4l
$328o82 �$427,48
$ 274,404
HP of The Redwoods
$165.97
1$239*38
$331.94
$431,52
Inter Group of Arizona
:$478*76
Plan Administrators
$662,40
Kaiser
$164. 3
$329 * 61
$428,57
Max care
$159971
$319,42
$415,24
Pacific are
$164,64
$329.2
$428,05
PERSCare
$273. ti/
$54 6 .
$710 .00
PERS Choice
$164,00
$328*
$426,00
FISCAL IMP T
The annual cost of each plan may vary depending on changes in the number of
employees during the year. The projected annual cost using current
enrollment as of June 1998 are:
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R
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-9
.
z
33
S5 TOM 5444 4 54{x44 4.S
ZOZ-:
Prudential Life Insurance
140,000
Kaiser Foundation Health Plan
300,060.
Health Net
470,240
CalPERS Medical
$4,815,000
Standard Insurance Company
$ 219,600
Safeguard Dental
$ 274,404
DentiCare Dental
$ 32,436
Delta Dental
$ 236,256
American Benefit
$ 65,000
Plan Administrators
... ..
...... ...
-- ----------------- ----- ----
.......... OAPAX + -
.........
------ -------------
$6,552,996
0 7 T
Employee Group Insurance Program
September 8, 1998
Page
Retirees who pay the cost of coverage are not included in the annual cost
estimates. In addition, the Police Officers Association o is not
included n the Medical and Dental projections since they manage their own
insurance programs.
Funds in the amount of $6,552,996 are budgeted to and available in the Pe rsonnel
Services Employee Benefits (account no, 81-177-6521 and account no. 81-177-
6191*
Enria4le
Exec i�
Personae
5�
APPROVED S TO FUNDS AND ACCOUNTS:
ef', ��� -
4od R! oloma ?Oov
Executive Director
Finance and Management Services