HomeMy WebLinkAbout25C - AGMT - EMPLOYEE INSURANCE RENEWALSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 6, 2012
TITLE:
EMPLOYEE GROUP INSURANCE
RENEWALS
- k)?L,
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1St Reading
? Ordinance on 2"d Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Authorize the City Attorney to prepare and authorize the City Manager and Clerk of the Council to
execute agreements for long term disability, medical, dental, vision, employee assistance,
employee group life and accidental death and dismemberment insurance.
DISCUSSION
The City's employee group benefit policies, contracts and agreements are renewed annually on
January 1. The City was successful in obtaining no rate increase for non-CaIPERS City
administered insurance benefits and POA Insurance contributions for 2013. Currently the City
provides life and accidental death & dismemberment (AD&D) coverage and long-term disability
(LTD) insurance through Aetna for full-time employees. We are currently in the second year of a
three-year rate guarantee for the Life, AD&D and LTD rates through December 31, 2014.
Life Insurance
Insurance Coverage Current Insurance Insurance Percent Change
Rate Renewal Rate
Life Insurance $0.102 per $1000 $0.102 per $1000 0.0%
Accidental Death & $0.020 per $1000 $0.020 per $1000 0.0%
Dismemberment
25C-1
Employee Group Insurance Renewals
August 6, 2012
Page 2
Long-Term Disability
Group Coverage Current Insurance Insurance Percent Change
Rate Renewal Rate
Management $0.352 per $100 $0.352 per $100 0.0%
Employees $8.78 $8.78 0.0%
130 day wait
Employees $15.93 $15.93 0.0%
60 day wait
Dental Plans
The contract with Safeguard and is up for renewal. Safeguard has agreed to renew our contract
for a period of one year with no rate increase. We are currently in the second year of a two-year
contract with Delta Dental, and there will be no rate increase.
Type of Coverage Safeguard Dental
Current Rate Safeguard Dental
Rate 2012 Percent
Change
Employee $25.28 $25.28 0.0%
Employee Plus Family $43.22 $43.22 0.0%
Type of Coverage Cur e l Rate RatDeelta Percent Change
Employee $48.39 $48.39 0.0%
Employee Plus Family $119.17 $119.17 0.0%
25C-2
Employee Group Insurance Renewals
August 6, 2012
Page 3
CalPERS Health Program
The CalPERS basic HMO health plans will increase by 8.7% and the basic PPO health plans will
increase by 13.9%. The increase reflects growing health care costs nationwide. The City will incur
a 9% increase in costs for all bargaining units that are tied to the Kaiser rate for the City
contribution and a 7.3% increase in costs for SEIU because the City contribution is tied to the
lowest HMO rate. There will not be any increase in City contribution to the POA medical
contribution for 2013. The employees will pick up any increase in cost above the City contribution.
Plan Employee
Only Employee & one
Dependent Employee & two or
more Dependents
Blue Shield Access+ HMO $643.93 $1287.86 $1674.22
Blue Shield NetValue $550.03 $1100.06 $1430.08
Kaiser $558.95 $1117.90 $1453.27
PERSCare $992.61 $1985.22 $2580.79
PERSChoice $611.30 $1222.60 $1589.38
PERSSelect $446.49 $892.98 $1160.87
PORAC safet members $581.00 $1088.00 $1382.00
Employee Assistance Program - REACH Employee/Associate Assistance
The City is entering into the second year of a three-year rate guarantee with REACH Employee
Assistance Program. This plan 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, legal, marital and family problems are available.
Retirees are not included in the annual cost estimates. The Police Officers Association maintains
their own insurance programs for medical, dental and LTD coverage.
25C-3
Employee Group Insurance Renewals
August 6, 2012
Page 4
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 2012.
Coverage for POA (Sworn and Non-Sworn)
2012 2013
Aetna Life/POA LTD Insu rance $ 439,753 $ 439,753
POA Dental $ 574,560 $ 574,560
POA Medical $ 6,940,940 $ 6,940,940
REACH (EAP Provider) $ 11,810 $ 11,810
Total Annual Cost $ 7,967,063 $ 7,967,063
Coverage for SEIU, CASA, SAMA, EM, PMA & PTCS
Aetna Life/LTD Insurance
Dental Carriers
CalPERS Medical
REACH (EAP Provider)
Total Annual Cost
2012
$ 131,594
$ 375,038
$ 6,455,785
$ 18,071
$ 6,980,488
2013
$ 115,175
$ 339,307
$ 5,722,225
$ 18,071
$ 6,194,778
Difference
$ 0
$ 0
$ 0
$ 0
$ 0
Difference
$ - 16,419
$ - 35,731
$-733,560
$ 0
$-785,710
Funds in the amount of $7,473,775 are budgeted and available in the Personnel Services
Employee Benefits account (account no. 08109053-64010) to pay for City Administered insurance
coverage. Funds in the amount of $7,080,920 are budgeted and available in the Employee
Benefits account (account no. 08109053-64010) to pay for the Association Administered insurance
coverage. Total budgeted amount is $14,554,695 available in Fiscal Year 2012-2013. The balance
to be budgeted in Fiscal Year 2013-2014.
APPROVED AS TO FUNDS AND ACCOUNTS:
Edward S. Raya
Executive Director
Personnel Services
Francisco Gutierrez
Executive Director
Finance & Management Services Agency t?
25C-4