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HomeMy WebLinkAbout10/04/1999 BAKERS. FIELD A an Tandy, C,ty Manager Mike Maggard, Chair Staff: Alan Christensen Irma Carson Mark Salvaggio AGENDA SUMMARY REPORT PERSONNEL COMMITTEE MEETING Monday, October 4, 1999 4:00 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order 4:05 p.m. Present: Councilmembers Irma Carson and Mark Salvaggio Absent: Councilmember Mike Maggard, Chair 2. ADOPT JULY 15 AND AUGUST 19, 1999 AGENDA SUMMARY REPORTS Adopted as submitted.- 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None 5. DEFERRED BUSINESS A. DISCUSSION AND COMMITTEE RECOMMENDATION ON THE CITY PHYSICIAN CONTRACT At the August !9th Personnel Committee meeting, the Committee wanted to ensure that employees be given the option to pick or identify the physician of their choice, so if they were injured on the job; they could go to that physician. Staff was directed to check with the service providers and return to the Committee with a recommendation. Risk Manager Scott Manzer stated that staff is recommending that service contracts go to Southwest Urgent Care for Fire personnel, Bakersfield Occupational Medical Group for Police personnel, and W. B. Christiansen M.D., Inc. for all other personnel. Due to expertise in this field of medicine, all non- treatment services such as pre-employment physicals and drug screening would go to ADOPTED AS SUB. ITTED ON OCTOBER 26, 1999 Fiji COPY AGENDA SUMMARY REPO PERSONNEL COMMITTEE October 4, 1999 Page -2- Dr. Christiansen. For industrial injury treatment, employees will be given an option to pre-select any of the three choices if they so desire, or employees may pre-designate their personal physician. In addition, these pre-selections of physicians would not only be for treating workers' compensation, but for return to work and fitness for duty physicals. This recommendation has been reviewed by city departments and emplo, yee union representatives and has their support and concurrence. The medical facilities have been notified and are in agreement with providing these services. The Committee approved staff's recommendation and recommended forwarding to the Council for approval (Councilmember Maggard was absent). 6. NEW BUSINESS A. DISCUSSION AND COMMITTEE RECOMMENDATION ON HEALTH PLAN RENEWALS FOR 2000 Human Resources Manager Carroll Hayden stated we have received rate information on health plan renewals for the next calendar year. The rates have been taken to the Joint Employee/City Insurance Committee for their review and recommendations and they have met, but their formal recommendations have not been received as yet. Tim Beck and Mark Orzechowski from Buck Consultants were introduced to present the renewal information that was shared with the Insurance Committee. Mr. Orzechowski stated renewal premiums for 2000 for the City's medical, dental, vision and metal health coverages are projected to increase 12.3% overall ($885,457) for an expected total annual premium of $8,099,306. This increase does not include Blue Cross Medicare Risk program as this premium information has not been received, but is expected by the middle of October. Overall, medical premiums are increasing 13.3%, overall dental premiums are increasing 9.7%, while the vision and mental health premiums are not changing. Blue Cross' overall medical PPO/Rx renewal increase is 15.1%. (active's premiums are increasing 6.8% and retiree's premiums are increasing 35.4%, both based on claims experience). Blue Cross' overall HMO renewal increase is 8.3% (active's premiums are increasing 3.5% based on actives' demographics and retiree's premiums are increasing 95.9% based on specific demographics of those enrolled). Kaiser HMO overall renewal increase is 19.7%, Secure Horizon's PacifiCare Medical Risk overall renewal increase is 326.1%, and the Blue Cross dental indemnity increase is 16.8% and the balance of the coverages did not change. Overall, Medical risk premiums are increasing for all managed care organizations. With the Balanced Budget Act of 1996 (BBA), the HCFA financing strategy shifted, which has resulted in most managed care organizations eliminating Medicare risk services in certain geographic locations locally and nationally. This service area shift and BBA provisions have drastically impacted Medicare risk premium rates. Mr. Orzechowski concluded with an overview of claims, loss ratios, and information on plan alternatives. .. AGENDA SUMMARY REPO PERSONNEL COMMITTEE October 4, 1999 Page -3- Margaret Ursin, retiree, spoke against the proposed increase of the co-payment for an office visit from $5 to $10 for retirees. The City Manager stated that the renewal information is still being reviewed at the Insurance Committee level and it is subject to gathering more information. We have been asked to look at the issue of re-blending the active and retiree groups and will be getting that information. Another significant issue needing to be resolved is that the current budget is about $100,000 short in being able to pay for the projected increase in premiums for the last six months of the fiscal year, as the new rates will be in effect January 1% The Committee thanked the representatives from Buck Consultants for their presentation. Committee member Salvaggio stated he was willing to review, but did not support proposed plan alternatives that cut services to the employees. Committee member Carson said she would like staff to provide a breakdown of what the proposed actual increases would be for employees, the retirees and the City, before making a decision. The Committee requested staff to provide information on the history of why we unblended rates and the City Attorney's opinion at the time, before consideration of going back to blending the rates. Committee member Carson requested the time frame for making a decision. Carroll Hayden responded within the next 30 days if possible, as the rates need to be approved by Council, so that we can have the contract in place and disseminate the information to employees and retirees in order to have an open enrollment prior to the first of the year. 7. COMMITTEE COMMENTS None. 8. ADJOURNMENT The meeting was adjourned at 5:30 p.m. cc: Honorable Mayor and City Council AC:jp Staff present: City Manager Alan Tandy; Assis. tant City Manager Alan Chdstensen; City Attorney Bart Thiltgen; Human Resources Manager Carroll Hayden; Scott Manzer, Risk Manager; Deputy City Attorney Andrew Thomson; Fire Chief Ron Fraze, Lance Bowman, Fire Department; and Benefits Technician Ginger Rubin. Others present: Tim Beck and Mark Orzechowski, Buck Consultants; J. R. Carrera, Department Manager, Bakersfield Occupational Medical Group; Thomas Watkins, Public Relations, Bakersfield Family Medical; Ward Wollesen, Central Californian Association of Public Employees; Dale Hawley, Retiree Representative; Richard Watkins, Fire Department retiree/B-FLAG; Scott Monroe; Margaret Ursin; and Harry Scott.