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HomeMy WebLinkAbout07/20/2017________________________________________________________________ S:\Council Committees\2017\Personnel\July\July 20 ASR.docx Page 1 ST:mc B A K E R S F I E L D Committee Members Staff: Steven Teglia Councilmember, Ken Weir, Chair Assistant City Manager Councilmember, Willie Rivera Councilmember, Bruce Freeman SPECIAL MEETING OF THE PERSONNEL COMMITTEE Thursday, July 20, 2017 12:00 p.m. City Hall North – Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 12:00 p.m. 1. ROLL CALL Committee members Present: Councilmember, Ken Weir, Chair Councilmember, Bruce Freeman Committee members Absent: Councilmember, Willie Rivera City staff: Steven Teglia and Chris Huot, Assistant City Managers Christopher Gerry, Assistant to the City Manager Virginia Gennaro, City Attorney Lisa McGranahan, Human Resources Manager Mari Blowers, Benefits Technician Nelson Smith, Finance Director Nick Fidler, Public Works Director Retired employees Fred Baugher, Florn Core, Bill Descary, and Margaret Ursin and BCARE: Others present: Tom Morrison, Jerry Huang, Segal Company 2. ADOPTION OF AUGUST 16, 2016 AGENDA SUMMARY REPORT A motion to receive and file the Personnel Committee’s August 16, 2016 Agenda Summary Report was approved. /s/ Steven Teglia ________________________________________________________________ S:\Council Committees\2017\Personnel\July\July 20 ASR.docx Page 2 ST:mc PUBLIC STATEMENTS There were no public statements. 3. NEW BUSINESS A. 2018 Health Care Plan Renewals - Teglia Assistant City Manager Teglia provided a summarization of the annual process to prepare the rate renewal package for 2018. He stated Segal Company had been working with the various plan providers to obtain an understanding of the rates for the new plan year, which begins on January 1, 2018. The same information was provided to the Insurance Committee earlier in the day. He introduced Tom Morrison with the Segal Company (Segal) to present their report by way of a handout and PowerPoint presentation. The report included information from the Request For Proposals (RFP) for the vision and dental plans. Mr. Morrison distributed information to the Committee and gave a summary overview. Key points are:  The overall City 2018 contribution for active employee medical benefit is increasing 6.2% or $991,600. All the plans had increases - Blue Shield PPO (7.3%), Blue Shield Full HMO (+1.1%), Blue Shield Narrow HMO (+1.1%), Kaiser HMO (+9.6%), and Kaiser High Deductible Health Plan (+1.6%).  The retiree medical benefit is increasing 2.8%. All plans had increases - Blue Shield PPO (2.4%), Blue Shield Medicare Advantage (11.5%), Kaiser HMO (15%), and Kaiser HMO Senior Advantage (7.2%)  There is no rate increase to the United Concordia Dental PPO and HMO plans for both, active employees and retirees, due to a three year multi- year rate guarantee contract; 2018 is the second year of the contract.  There is no rate increase to the MES Vision contact as well due to a four year multi-year guarantee contract; 2018 is the second year of the contract.  There is no rate increase to the Section 125 Flexible Benefits, Long Term Disability, and AD&D Life Insurance.  The Basic Life Insurance plan is decreasing by 7.14%.  An alternative set of rates to decrease the active employee voluntary supplemental life has been proposed contingent on an aggressive campaign to solicit more participants.  Segal has issued a Request for Proposals (RFP) for vendors who can provide enhance administrative services for the Section 125 Flexible Benefits, Dependent Care Account, and COBRA. The results would be communicated at a later time. ________________________________________________________________ S:\Council Committees\2017\Personnel\July\July 20 ASR.docx Page 3 ST:mc  Drivers of the current rate increases are: one year reprieve of a component of the Affordable Care Act’s Insurer Tax incurred on January 1, 2018 if the law remains in place; notable increases in the following areas of participant usage at the local hospital by those in the Kaiser plans including: the use of emergency rooms for non-critical circumstances, in hospital surgical procedures, frequency and complexity of maternity cases. The drivers for the Blue Shield plans were very similar to the Kaiser plans. Mr. Morrison also provided a summarization of several plan modifications discussed with the Insurance Committee earlier in the day. None of which were recommended due to the minimal impact on reducing the plan rates. Segal has requested additional information from Blue Shield regarding a mandated change to their tiers of medication in order to provide members an accurate list of price differences for their medications. Assistant City Manager Teglia reported that after careful consideration and thorough discussion, the Insurance Committee voted unanimously to recommend the City accept and adopt the rate renewal package as presented. Staff and Segal were also in agreement with the Insurance Committee’s recommendation. Assistant City Manager Teglia stated staff will assess future costs drivers in order to work with the vendors to coordinate educational sessions during the open enrollment period conducted during the end of the year. Committee member Freeman made a motion to accept staff’s recommendation and submit the item for approval to the full City Council. The motion was unanimously approved with Committee member Rivera absent. 3. COMMITTEE COMMENTS There were no committee comments. 4. ADJOURNMENT The meeting was adjourned at 12:50 pm