The URL can be used to link to this page

Home My WebLink About10/01/2014BAKERSFIELD Staff: Steven Teglia Assistant to the City Manager 1. ROLL CALL City Council rr Ken Weir, Chai Terry Maxwell Harold Hansor SPECIAL MEETING NOTICE PERSONNEL COMMITTEE of the City Council - City of Bakersfield Wednesday, October 1, 2014 12:00 p.m. City Hall North - Conference Room A 1600 Truxtun Avenue, First Floor Bakersfield, California 93301 AGENDA 2. ADOPT AUGUST 15, 2014 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Continued Discussion and Recommendation regarding 2015 HE Care Plan renewals - Teglia 5. COMMITTEE COMMENTS 6. ADJOURNMENT � BAKERSFIELD /s/ Ste�v�Tec�;c� Committee ME Staff: Steven Teglia Ken Weir, Chai Assistant to the City Manager Terry Maxwell Harold Hanson SPECIAL MEETING OF THE PERSONNEL COMMITTEE Friday, August 15, 2014 12:00 p.m. City Hall North - Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 12:05 p.m. 1. ROLL CALL Committee members: Councilmember Ken Weir, Chair Councilmember Terry Maxwell Councilmember Harold Hanson City staff: Alan Tandy, City Manager Steven Teglia, Assistant to the City Manager Chris Huot, Assistant to the City Manager Caleb Blaschke, Management Asst. - City Manag Nelson Smith, Finance Director Virginia Gennaro, City Attorney Christi Tenter, Human Resources Manager Ginger Rubin, Benefits Technician Retired employees and BCARE: Others present: Fred Baugher, Bill Descary, Margaret Ursin and Rok Johnny Wu and Tom Morrison: Segal Company 3. PUBLIC STATEMENTS None 4. NEW BUSINESS A. OPEB Actuarial Analysis Presentation Finance Director Smith stated that OPEB stands for Other Posi Benefits. Retiree medical benefits fall into this category. The City have an actuarial study done every two years. He introduced Tom Segal, to provide the report. Mr. Morrison distributed information, and provided a summary of thE the Committee. • As of June 30, 2013, the unfunded actuarial accrued liability < $19.7 million, from $83.6 million to $63.8 million. • The funded ratio of assets to actuarial accrued liability, wr liability for all retirees plus active employees who are eligible f when they retire, increased from 19.37�o in 2011 to 42.15�o i increase in funding is due not only to making the minimum rec Required Contribution (ARC), but also, in some years, paying r minimum amount. • The overall net obligation decreased by $1.7 million. As a resu increased contributions, along with recent plan changes, th forward decreased from $8.0 million to $6.5 million. • The assets on hand to meet all benefit obligations increasE million to $46.5 million due to contributions made, plus investm� • The actuarial present value of total projected benefits is $121 • The City is currently 42.15�o funded. If the current schedule i the liability will be fully funded in 24 years, which is the amortization schedule. Committee Chair Weir noted the positive aspects of the report, and Bakersfield is one of a few cities in the state or country that has accc type of success. Mr. Morrison said that in comparison to other cities in the statE Bakersfield can be considered Best in Class. B. Discussion reqardinq 2015 Health Care Plan Renewals Assistant to the City Manager Teglia stated that a meeting with i Committee had taken place earlier this same day, and they were � the same information that would be presented to the Personnel C follow-up meeting with each Committee will take place. Mr. Morrison summarized the information that had been distributed. • Anthem o HMO: There is a proposed rate increase of l b�o. o PPO for active employees: There is a proposed rate inc o PPO for retirees: There is a proposed rate increase of 2� o Senior Secure for retirees over the age of 65: There i rate increase of 4.b�o. It was noted that, with the proposed rate increases, there difference between the active employee contribution for Anthem HMO and PPO plans. • Kaiser o HMO for active employees, and those under the age < a proposed rate increase of 15�0. o High Deductible plan for active employees: There is a K increase of 5�. o High Deductible plan for those under the age of 6� proposed rate increase of 15.b�o. o Senior Advantage: There is a proposed rate increase o1 • There is no increase or decrease proposed for the two Pacific Plans, as they are in the midst of multi-year contracts. There rate increase of 7.2�0 on the Met Life Dental plan. • There is no rate increase or decrease proposed for Assistance Program Plan, Flexible Spending (125) Plan, Life Long-Term Disability. Suggestions for modifications to mitigate the rate increases were pro include increasing out-of-pocket maximums, lowering co-insurance A summary of rate histories for each plan for active employees revE appear to be in line with the national trends. Over a five-yea average increase for the Anthem PPO Plan was 4.b�o. The higl increase for the same time period was 7.3� for the Anthem HMO, a average increase was 2.8�o for the Kaiser HMO. For the non-medicare eligible retirees, the five-year average rate 12.7� for the Kaiser HMO, 10.7�o for the Kaiser DHMO, and 2.8� fo PPO plans. These figures factor into the OPEB liability Enrollment in each plan for active employees is as follows: • Anthem PPO - 52�0; • Kaiser HMO - 27�0; and • Anthem HMO - 21 �. Committee member Maxwell asked about the total increase in c answer was $1.2 million. Assistant to the City Manager Teglia noted that the amount c< depending on potential modifications that might be agreed to by � Committee. Committee Chair Weir asked about the time table for resolving all qu Assistant to the City Manager Teglia said that the plan changes shoul and brought forward to the City Council prior to Open Enrollment place at the beginning of November. He added that staff will me the Personnel Committee, and bring forward a report on the progrE the Insurance Committee. 3. COMMITTEE COMMENTS None 4. ADJOURNMENT The meeting was adjourned at 12:45 p.m. The following presentation was made at the Special Meeting of the Personnel Committee on Wednesday, October 1, 2014 Cit of Bakersfield y Personnel Committee October 1, 2014 Tom Morrison Table of Contents >Overview of 2015 Plan Renewals • 2015 Current City Contribution • Proposed Plan Modifications • Anthem HMO • Anthem PPO • Anthem Senior Secure • Kaiser HMO • Kaiser HDHP • Kaiser Senior Advantage • Dental, vision, EAP and Life >Append ix >Overview of 2015 Plan Renew als 2015 Cit Contribution Without Plan Modificati y lan ��> nthem iser IetLife Dental UD Dental�2� ES Vision�3� HMC PPC Sub Tota HMC HDHF Sub Tota PPC Imperial 100( Napa 80( Sub Tota HMC PPC Sub Tota Total Medical, Dental, Visior City's Budgeted IncreasE Enrollment 289 709 998 361 2 363 790 574 3 577 ..: : .. Active Current City Contribution at 80% $2,726,880 $7,671,600 $10,398,480 $2,686,240 $10,472 $2,696,712 $798,480 $275,920 $1,352 $277.272 $47,920 $74,480 $122,400 $14,293,344 2015 City Contribution at 80% Annual Increase $3,163,120 $436,240 $8,055,040 $383,440 $11,218,160 $819,680 $3,089,200 $402,960 $10,992 $520 $3,100,192 $403,480 $856,000 $57,520 $275,920 $1,352 $277.272 $47,920 $74,480 $122,400 $15,574,024 $0 $1,280,680 $714,667 2015 Cit Contribution With Plan Modification: y Current City 2015 City Contribution Plan �� Enrollment Contribution at 80% at 80% Annual Increase nthem HMO 289 $2,726,880 $3,019,040 $292,160 PPO 709 $7,671,600 $8,055,040 $383,440 Sub Total 998 $10,398,480 $11,074,080 $675,600 Kaiser HMO 361 $2,686,240 $2,941,440 $255,200 HDHP 2 $10,472 $10,992 $520 Sub Total 363 $2,696,712 $2,952,432 $255,720 MetLife Dental PPO 790 $798,480 $856,000 $57,520 PUD Dental�2� Imperial 1000 574 $275,920 $275,920 $0 Na a 800 3 $1,352 $1,352 $0 Sub Total 577 $277,272 $277,272 $0 MES Vision�3> HMO 668 $47,920 $47,920 $0 PPO 728 $74,480 $74,480 $0 Sub Total 1,396 $122,400 $122 400 $0 Total Medical, Dental, Vision $14,293,344 $15,282,184 $988,840 City's Budgeted Increase $714,667 Amount Over the Bud et $274 173 �� ING Life and AD&D, Optum EAP, Unum LTD and Healthcomp are not included above Anthem HMO Plan Modifications Deductible Single Family Annual Out-of-Pocket Maximum Single Family Hospital Inpatient Outpatient Primary Care Visits Specialty Care Visits Diagnostic X-Ray and Lab Preventive Care Durable Medical Equipment Emergency Room Prescription Drug Retail Generic Brand (Formulary) Brand (Non-Formulary) SpeCIaltV Current HMO $0 $0 $500 $1,500 $250/admit $0 $25 $25 $0 $25 $0 $100 (waived if admitted) $10 $20 $20 $20 Option Value HMO 20 day/125 $0 $0 $3,00( $6,00( $250/day, up to $125/ad $20 $40 $0 $0 50% $150 (waived if $10 $25 $45 20% Rate Increases from 2014 I 16.00% I 10.71 ° Kaiser HMO Plan Modifications eductible Single Family nnual Out-of-Pocket Maximum Single Family ospital Inpatient Outpatient rimary Care Visits pecialty Care Visits reventative Care iagnostic X-Ray and Lab urable Medical Equipment mergency Room mbulance Transportation rescription Drug Retail Generic Brand Days of supply rescription Drug Mail Generic Current Kaiser HMO G� ;.� $1,500 $3,000 $250/admit $25 $25 $25 $25 $0 20% $100 (waived if admitted) $50 $10 $20 100 days $10 Option 1: Ambulance and Modification $0 $0 $1,500 $3,000 $250/admit $25 $25 $25 $0 $0 20% $100 (waived if adm $100 $10 $20 30 days $20 2015 Anthem Monthl Rate Summa y �r em Blue Cross HMO Active (Monthly) Single 2-Party Familv em Blue Cross PPO Percentage Co Increase / 2015 City 2015 Employee I� Enrollment 2014 Rate 2015 Rate* (Decrease) Contribution Contribution (D 68 66 155 Enrollment Active (Monthly) Single 169 2-Party 138 Family 402 Retiree (Monthly) Single 254 2-Party 144 Famil 10 hem Blue Cross Senior Secure $432.97 $870.16 �1.272.10 2014 Rate $482.66 $966.97 $1,453.01 $760.96 $1,521.82 $2.282.75 $479.36 $963.41 �1,408.42 2015 Rate $506.78 $1,015.30 $1,525.64 $935.86 $1,871.60 $2.807.42 10.71 % 10.72% 10.72% Percentage Increase / (Decrease) 5.00% 5.00% 5.00% 22.98% 22.98% 22.98% Dnrrnr�t�rvn $383.49 $95.87 $770.73 $192.68 > 1,126.74 $281.68 co 2015 City 2015 Employee Ir Contribution Contribution � $405.42 $101.36 $812.24 $203.06 $1,220.51 $305.13 Varies Varies r., 2015 Kaiser Monthl Rate Summa y �r iser HMO Active (Monthly Single 2-Party Family Under 65 Retiree (Monthly Single 2-Party Familv Kaiser Deductible Enrollment I 2014 Rate I 2015 Rate* 100 70 191 5 1 0 $358.50 $716.99 $1,014.54 $859.25 $1,718.50 $2,431.68 Enrollment I 2014 Rate $392.55 $785.10 $1,110.92 $940.88 $1,881.76 $2,662.69 Percentage Increase / (Decreasel 9.5% 9.5% 9.5% 9.5% 9.5% 9.5% Percentage Increase / 2015 Rate (Decrease) 2015 City Contribution $314.04 $628.08 $888.74 Varies Con 2015 Employee In� Contribution De $78.51 $ $157.02 $ $222.18 $ Varies �, Cor 2015 City 2015 Employee In Contribution Contribution (Di Active (Monthly) Single 1 $284.79 $299.03 5.0% $239.22 $59.81 � 2-Party 0 $569.60 $598.06 5.0% $478.45 $119.61 � Family 1 $805.96 $846.25 5.0% $677.00 $169.25 � Under 65 Retiree (Monthly) Single 0 $703.99 $814.09 15.6% Varies Varies � 2-Party 0 $1,407.98 $1,628.19 15.6% Famil 0 $1,992.29 $2,303.88 15.6% Kaiser HMO Senior Advantaqe 2015 Dental Monthl Rate Summa y �r cific Union Dental Monthly Summa 'mperial 1000 - Active Single 2-Party Family Vapa 800 - Active Single 2-Party Enrollment 169 142 274 �� 2014 Rate $22.81 $45.49 $67.44 $20.41 $40.70 fic Union Dental Optional Plan - Monthly Summ Trinity Dental - Retiree Single 2-Party Family Regency Dental - Retiree Single Enrollmenl 18 13 0 77 2014 Rate $11.42 $18.28 $28.03 $19.23 2015 Rate* $22.81 $45.49 $67.44 $20.41 $40.70 2015 Rate* $11.42 $18.28 $28.03 $19.23 Percentage Con Increase / 2015 City 2015 Employee In� Decrease Contribution Contribution De 0.0% $18.25 $4.56 � 0.0% $36.39 $9.10 � 0.0% $53.95 $13.49 � 0.0% $16.33 $4.08 � 0.0% $32.56 $8.14 � Percentage Increase / 0.0% 0.0% 0.0% 0.0% Con 2015 City 2015 Employee In� �ontribution Contribution (De Varies Varies 2015 Dental Monthl Rate Summa y �r etLife Dental PPO Active (Monthly) Single 2-Party Familv Enrollment 187 205 �c • : 2014 Rate $42.16 $86.71 144.52 2015 Rate $45.20 $92.94 $154.93 Percentage Increase / (Decreasel 7.2% 7.2% 7.2 conti 2015 City 2015 Employee Inci Contribution Contribution (Dec $36.16 $74.35 123.94 $9.04 $18.59 30.99 �� , � 2015 EAP, and Vision Rate Summa rY (Composite Rate) - All Employees Active (Monthl Percentage 2015 Con Increase / 2015 City Employee Inc Enrollment 2014 Rate 2015 Rate Decrease Contribution Contribution De 1436 $1.66 $1. 66 0. 0% 1.66 0.00 : edical Eye Services (MES) Monthly Summary - Vision MO Active and Retiree Single 2-Party Family Active Single 2-Party Percentage 2015 Con Increase / 2015 City Employee Inc Enrollment 2014 Rate 2015 Rate* Decrease Contribution Contribution De 196 $3.75 $3.75 0.0% $3.00 $0.75 g 167 $7.50 $7.50 0.0% $6.00 $1.50 � 311 $9.75 $9.75 0.0% $7.80 $1.95 � 197 $5.25 $5.25 0.0% $4.20 $1.05 180 $10.55 $10.55 0.0% $8.44 $2.11 *4-year rate guarantee through 2016 2015 Flexible Benefits, Life and LTD Rate Sum ealthComp - Section 125 Flexible Benefits (per participant per month) Enrollment Heal th Co m NG - Life Insurance (Rate per $1,000 Enrollment Basic Life AD&D *3-year rate guarantee through 2015 num - Long Term Disability (Rate per $100) Enrollment Un um 2014 Rate 2014 Rate $0.102 $0.02 2014 Rate $0.55 2015 Rate 2015 Rate* $0.102 $0.02 2015 Rate $0.55 Percentag Chanae Percentag� Change 0.0% 0.0% Percentag Change 0.0% >Append ix Act i ve P I a n Rate H i sto ry 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% 2011 2012 2013 2014� 20152 Act i ve P I a n Rate f o r S i n I e E m p I o e e- Rate H J Y $600.00 $500.00 $400.00 $300.00 Szoo.00 $100.00 S- � Kaiser HMO � -Anthem HMO ��_ - �: 2011 $317.45 $356.03 Active Rate History 2012 $317.45 $356.03 2013 $330.14 $386.92 ��-� - 2014 $358.50 $432.97 Non Medicare Retiree Plan Rate History 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% �.�% -5.0% -10.0% -15.0% -20.0% -25.0% 1 2 2011 2012 2013 2014 2015 Non Medicare Retiree Plan Rate for Sin le Ret g Rate H i sto ry $Z,000.00 $900.00 �:�� S�oo.00 $600.00 Retiree Rate History $500.00 - $400.00 $300.00 $200.00 $100.00 $- 2011 2012 2013 2014 � Kaiser HMO $626.83 $737.35 $739.56 $859.25 Enrollment for Active Plans 2013 Enrollment - Actives Kaiser DHMO, 1, 0.1% Kaiser HMO, 324, 25% Anthem HMO, 274, 21% Anthem PPO, 717, 54% 2014 Enrollment - Actives Kaiser DHMO, 2, 0.1% Kaiser HMO, 361, 27% Anthem HMO, 289, 21 % Anthem PPO, 709, 52% Non Medicare Retiree Enrollment 2013 Enrollment - Non Medicare Retirees Kaiser HMO, 9, 2% Kaiser DHMO, 1, 0.2% � Anthem PPO, 393, 98% 2014 Enrollment - Non Medicare I Kaiser DHMO, 0, Kaiser HMO, 6, 1% � 0.0%