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HomeMy WebLinkAbout02/03/1997 BAKERSFIELD Alan Tandy, City Manager Patricia J. DeMond, Chair Staff: John Stinson Mark Salvaggio Jacquie Sullivan AGENDA SUMMARY REPORT PERSONNEL COMMITTEE MEETING Monday, February 3, 1997 4:15 p.m. City Manager.'s Conference Room 1501 Truxtun Avenue Bakersfield, CA 93301 1. ROLL CALL Call to Order 4:20 p.m. Present: Councilmembers Patricia J. DeMond, Chair; Mark Salvaggio and Jacquie Sullivan 2. APPROVAL OF JANUARY 13, '1997 MINUTES Approved as submitted. 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None 5. DEFERRED BUSINESS None 'lLE APPROVED .AS SIII~TTED ~sRCH 11, 1997 AGENDA SUMMARY REPORT PERSONNEL COMMITTEE Monday, February 3, 1997 Page -2- 6. NEW BUSINESS A. HEALTH PLAN MARKETING Assistant City Manager John Stinson gave a brief overview of the work done to date to market the City's Health plans by Health Care Consultant Herb Kaighan. The Request for Proposal to market the plans has been prepared. In addition, the time line, minimum qualifications for vendors and a list of vendors who will be provided the Request for Proposal have been developed. All of this material has been discussed and reviewed by the Joint City/Employee Insurance Committee who have unanimously endorsed the process. It is intended that the Request for Proposal will be sent directly to a large number of health care companies and providers and will request cost information based on current plans for cost and service comparison purposes. Additional plan options where potential changes, improvements or cost savings may result will also be solicited from these vendors. A potential vendor list is attached. Public comments were received from Mr. Jim Barks, an inSurance broker representing FinHealth, who expressed concerns that insurance brokers were not included in the marketing process. He said the City should consider local brokers and could possibly save money by using a broker rather than a consultant. He stated that local brokers have a greater feel for the local health care market. Mr. Clay Koerner asked several questions and expressed concerns regarding the amount of the City Health Care Consultant contract. He also suggested that perhaps brokers could be used to represent individual insurance companies in the marketing process. The health care consultant's contract was the product of review and discussion by Council Committee and the City Council in several public meetings. The City has changed health care consultants several times over the past ten years. The current consultant was originally selected through a RFP which included proposals from local vendors. The current consultant was hired in 1992 and his contract has been renewed by the City Council three times as a result of satisfactory-work performance and good working relationship with the Council, staff and employee groups. He is beginning the second year of a two year contract. The City Council directed the marketing of the health plans for 1998 and contracted with Mr. Kaighan to perform this additional work. City Attorney Skousen pointed out that some work has been completed under the current contract, and it may be canceled by either party upon 30 days notice. The City would be responsible for paying him for any work completed to date in the event of a cancellation. It was discussed that if a AGENDA SUMMARY REPORT PERSONNEL COMMITTEE Monday, February 3, 1997 Page -3- broker were used, that the commission paid to the broker would be an additional annual cost included in the cost of the health insurance to the City. It was also discussed that any changes to the structure of the current health plans would be subject to meet and confer requirements under the City's current labor agreements. Councilmember Sullivan continued to express concerns that the marketing did not include the local insurance brokers' community. She still indicated that local brokers should be included in the marketing of the health plans and that the proposal to do the marketing should be put out to bid, even though the City has a consultant currently under contract. Councilmember DeMond requested that the brokers submit their recommendations in written form so staff could review and more fully understand their position and concerns. The brokers in attendance agreed to submit a proposal to staff by February 18. Staff will report back to the Personnel Committee at the next committee meeting which is scheduled for March 10. ADJOURNMENT The meeting was adjourned at 5:35 p.m. Staff present: Assistant City Manager John W. Stinson; City Attorney Judy Skousen; and Human Resources Manager Carroll Hayden. Others present: Health Care Consultant Herb Kaighan; Employee Insurance Committee member Mike Lee; Retiree Margaret 'Ursin; Clayton Koemer, Alliance Brokers and Consultants; FinHealth Services, Owner, Jim Barks; and FinHealth Services Associate Jackie Henderson. cc: Honorable Mayor and City Council JWS:jp City of Bakersfield Prospecriv¢ Carrier Aetna Health Plans Ameritas Insurance Corp. Blue Cross of California Blue Shield of California BPS Healthcare Califomia Dental Health CareAmerica Health Plans CIGNA HealthCare CNA DDS Delta Dental Dental Benefit Providers of California DentiCare of California First American Dental Plan Foundation Health FHP General American Life Golden West Dental and Vision Great-West Guardian Life I-IBI Health Net Health Systems International Healthcare Foundations of the Central Valley HealthSource/Provident Intervalley HealthPlan Jefferson-Pilot Kaiser Permanente Key Health Lifeguard Maxicare MetLife MetraHealth MIDA Dental Plans Mutual of Omaha New England Life NYLCare Pacificare Prudential HealthCare Reliastar SafeGuard Health Plans United HealthCare of California United Dental Care Western Dental