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Home My WebLink AboutSAFEGUARD HEALTH PLAN -1993R I REQUEST FOR COUNCIL ACTION 0 cati rr CITY COUNCIL August 16, 1993 MEETING DATE TITLE EMPLOYEE GROUP � INSURANCE RENEWALS CITY MANAGER RECOMMENDED ACTION Direct the city Attorney Clerk of the council to Insurance Renewals commen DISCUSSION ��i SSE ONLY Approved CEf As Ftecornmended emended (see minutes) Ord i nance on I st Fjoading Ord i an ce on 2n Reading Implementing Resolufton Set PLiblic e � For Continued d to: r FILE NMS: ii V ♦. to prepare and authorize the Mayor and execute agreements for Employee Group ci g October 1, 1993 . The cityls city's employee group insurance policies, contracts and a g reer ents renew annually on October l and are listed Belo o Kaiser Foundation Nealthplan - IGN i Nea .th p lain o California: Health Maintenance organization (CIGNA S taff) an Private Practice Plans Health maintenance Network f southern California (Health Net Pacific coast Administrators: Claims Administration of self-Funded Dental Plan -- safe card... a l :.:'.:: ,Plain : Pre-Paid Dental Benefits ent a `e: Pre -Paid Dental Benefits Standard Insurance Company, Life and Accidental Death Dismemberment ent I nsurance � Long-Term usability Insurance All rates discussed in this memorandum are monthly and based on a -k {}�;orturuatio o the - existing benefits, except for Kaiser' 4 Y benefits. . Effective October 1. 1993, the Kaiser Plan will begin assessing a prescription drug copayment of $2.50 per prescription. 057 25� Employee Group Insurance Renewals August 1, 1993 Page Two of iX HEALTH PLANS For the 1993-94 contract year, the CitY'rs Hmo plans will be implementing significantly lower rate increases than those put into effect for the 1992-93 contract gear. The Kaiser Plan, which has the most generous benefits, will begin assessing a prescription drug copayment. All other plans will continue to have the same benefits as the current year, Kaiser Foundation Health Plan The Kaiser Plan for the 1993-94 contract year will have a prescription drug co payment, currently $0, o $2.50 per prescription. This change will bring the wiser benef it level more in line with CIGNA and Health Net. The combination of Kaiser's rate action and this benefit reduction resulted in the following renewal rates: single Family Current Rates Renewal Rates (10/01/92- (la /o1/9s- Percent Change 09/30/93) 09/30]94) From Current $171,14 $174o86 420.62 1 433.76 2.2 3. 1 Except for prescription drugs, all other benefits will remain the same. IG A Health Plans city two 1G HMOs a clinic type and an individual practice The � � type, Both plans are rated on a combined basis; thus rates are the same. The renewal rates are detailed below: Current Rates Renewal Rates (30/01/32- (10/01/93- Percent Change 09/30/93) 09/30/94) From Current * Single $170.68 $182.04 6.7% * Family 422.54 454.52 7.60 The plan benefits will remain unchanged. 2-t5U 058 Employee Group Insurance Renewal August 16, 1993 Page Three of Six Health Net The Health Net rates will e increasing . for active employees. The rates are detailed below; The plan benefits will remain unchanged. DENTAL PLANTS The City will continue to offer the existing indemnity self-funded dental plan along with two prepaid dental programs, 'there will be no change in benefits, Pacific Coast Administrators/self-runded Dental Plans The rates for the City's indemnity self - funded dental plan will be increasing 7. This rate adjustment is Lased on claim experience for the most recent twelve months (07/01/92-07/01/93). There has been a slight increase in plan utilization during this period compared the prior gear. The rates are listed below: These rates assume the same plan benefitso The administration fee for these services wi Employee Group Insurance Renewals August 16, 1993 Page Four of Six Safeguard Health Plans - Prepa2".d Prepaid Dental Coverage The 1993 -94 contract year will be the second year of a three -gear guarantee with Safeguard. There will be no change in rates and benefits. The rates are described below DentiCare a- Prepaid Dental coverage e tiC re is the second prepaid dental plan offered alongside Safeguard. The DentiCare plan was introduced effective October 1, 1992, For the second contract year, Denticare will be increasing rates by 8.0%. This rate increase includes an adjustment for the significantly lower than anticipated enrollment for the current year. The rates are detailed below. The plan benefits will remain unchanged. LIFE /AD &D AND LONG TERM DISABILITY INSURANCE The City will continue to offer the existing Group Life, Accidental Death and Dismemberment and Long Terre Disability overages currently insured through Standard Insurance. There will be no charge in benefits and rates. Standard Insurance Company Life /AD &D Insurance Standard Insurance Company began insuring the Life and AD&D plans on October 1, 1989, having replaced Lafayette Insurance Company, The current rates, detailed below, will not change effective October 1, 1993. Life $.20/$1,000 25D 0 no Employee Group Insurance Renewals August 16, 1993 Page Five of Si Employee Group Insurance Renewals August 16, 1993 Pace Six f Six The annual cost of each plan may vary depending on 1. changes made during the Annual open Enrollment in September; and 2e, Monthly fluctuations ire enrollment. Retirees, who Pay the cost of coverage, are not included in the annual cost estimates. In addition, the Police Officers Association (POA) is not included in the Medical and Dental projections. The City contributes to the PoA medical and dental plans through another account. Finally, both the Police Officers Association and Fire Benevolent Association are excluded from Long Term Disability (LTD) projections due to eac h of these two associations carrying their ors LTD plans. Funds in the amount of $6,092,507,00 are budgeted and available in Personnel Services Employee Benefits account no. 81-177). rmit Francis ecutive Director Personnel Services 25D APPROVED AS TO FUNDS AND ACCOUNTS* { of Executive - hector Finance & I c t . Services Agency 062