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HomeMy WebLinkAbout07/30/2002 B A K E R S F I E L D (-';'"~// Harold Hanson, Chair Alan Tandy'~City Man;~j6r Irma Carson Staff: Alan Christensen Mark Salvaggio AGENDA SUMMARY REPORT SP. ECIAL MEETING · PERSONNEL COMMITTEE Tuesday, July 30, 2002, 12:00 noon City Manager's Conf~rer~ce Room, Suite 201 Second Fldor, City Hall, 1501 Truxtun Avenue, Bakersfield, CA 1. ROLL CALL Called to Order at 12:07 p.m. Present: Councilmembers Harold Hanson, Chair; Mark Salvaggio; and Irma Carson (arrived at 12:15' p.m.) 2. ADOPT JUNE 18, 2002 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. NEW BUSINESS A. Staff update on City Physician RFP (Request for Proposals) Risk Manager. Patrick Flaherty briefed the Committee. The Insurance Committee met earlier in the day and reviewed the list of proposed physicians. With Committee approval, the City Physician RFP will be sent out on August 2nd, with a due date of September 6th. The Interviews for the 'finalists will be on September 12th. The contracts should be going to the City Council in October 2002. The current three-year contracts expire in November 2002. The interview panel for the City Physician oral interviews is proposed to consist of Human Resources Manager Carroll Hayden, Assistant Police Chief Bill Rector, Fire Chief Ron Fraze, Risk Manager Patrick Flaherty, and Jeff McHale from AIMS. ADOPTED AS SUBHITTED ON SEPTENBER 17, 2002 Agenda Summary Report Personnel Committee Meeting July 30, 2002 Page - 2- City physicians mainly perform pre-employment physicals', drug screening, fitness for duty, and workers' compensation. The new contracts will be for a term of three years. Currently Dr. ChriStiansen handles the pre-employment physicals for the City and workers' compensation for the Miscellaneous employees. Dr. Howard Miller at Bakersfield Occupational Medical Group handles workers' compensation for Police Safety, and Dr. Del Toro at Southwest Urgent Care Center, handles workers' compensation for Fire Safety. Chuck Waide, CCAPE, spoke regarding the employees being able to select a doctor from the certified list and also asked if employees are able to go to the same doctor for return to work releases. If employees have industrial injuries, they go to the same City doctor for return to work release. If employees are off due to non-work related injuries and go to their own doctor, they would go to a City physician for the return to work release. It was explained employees may fill out a form to pre-designate their own current doctor for industrial injuries-covered by workers' compensation, or employees may pre-select any one of the City doctors on contract. If employees do not choose to pre-designate or pre-select their choice, they go to the doctor for their unit. Police Officer Scott spoke about having the pre-selection process expanded and having more than three City physicians on contract to choose from, perhaps four or five. There was discussion regarding the difficulty to find doctors qualified with special expertise and experienced in industrial medicine to fill the City's diverse needs. In the past the City had only one industrial doctor and now has three. Staff explained to be able to ensure all employees have uniform, equal care for same injuries, it is more efficient.to work with three physicians and did not recommend having more that four. As employees may pre-designate their personal physician, this allows employees other choices. The Committee approved sending out the RFP for City Physician. After the selection process, staff will prepare a memo covering the physician selection process. B. Staff report and review of Blue Cross Program for 2001 Human Resources Manager Carroll Hayden introduced Buck Consultants Tim Beck and Michael Schionning and explained they had met earlier in the day with the Insurance Committee,. which included representatives from the employee units. Agenda Summary Report Personnel Committee Meeting July 30, 2002 Page - 3- The consultants gave an overview of 2001 results for the self-funded plan which is the Blue Cross PPO and Blue Cross dental plan. The plan ran a surplus of $695,000, which will be used to off-set the deficit carried forward, so the plan now has a surplus that can be used in future years to help stabilize increases. Projected 2002 results. With claim experience through the end of May 2002, basically the plan is running right at expected levels and projected to have a ~;light .additional surplus of about $79,000. C. Staff report, discussion and Committee recommendation on Foundation for Medical Care of Kern County Currently for the self-fun~ded PPO plan and Blue Cross dental plan the actual provider network and claim payments are being handled by the Foundation for Medical Care of Kern County (Kern Foundation), which is the preferred provider network for Blue Cross. Because of is~;ues regarding network access, particularlY in the dental plan, and increases in bOth administrative costs and their provider discount, Buck consultants had asked Blue Cross what the difference in cost would be if we uSe Blue Cross Prudent Buyer instead of Kern Foundation. However, the Insurance Committee asked for the following information before making a recommendation: the total provider list of physicians, Blue Cross Provider list and updated Kern Foundation list. There was concern regarding actual doctors and dentists being used by employees and if they were included on the network. If employees had to change dOctors, it may not be a good decision to change to Prudent Buyer. There are financial benefits, but not if there is a huge disruption with the need to change doctors. The-Personnel Committee voted not to take any action until the Insurance Committee reviews the requested information and makes its recommendation to stay with Kern Foundation or make a-change to Prudent Buyer. D. Staff report, review and Committee recommendation on health insurance plans projected 2003 rates Renewal Summary for 2003. Blue Cross PPO with Kern Foundation will have an 18.8% increase or if there is a decision to change to Prudent Buyer an 8.2% increase. Blue Cross HMO will increase 29.9%. This is a blended rate between the retirees and the actives, so the 'entire experience is included. Prescription drugs for retirees have doubled in the past year. Agenda Summary Report Personnel Committee Meeting July 30, 2002 Page - 4- Blue Cross Senior.Secure - Medical Risk will be increasing 109.5%. This rate has doubled for everyone in the County that has this plan. Kaiser HMO will be increasing 12.5%, which seems to be their trend. Kaiser Medical Risk will increase 52.7%. Secure HoriZons HMO has not given a rate as there is only one person remaining in the plan, so it may not be offered. Consistent increases in this area are.about.50% to 60%. Blue Cross Dental will increase 13.6%. If there is a decision to change to Prudent Buyer a 5.8% increase. Dedicated Den~tal will increase 5.1% and Pacific Dental will increase 5.0%. The other plans are keeping the current rates. The overall increase will be 20.8%, which is a $2,254,985 increase for a total projected premium for 2003 of $13,078,785 with Kern Foundation. If there is a change to Prudent Buyer the increase will be 14.1%, which is a $1,541,075 increase for a total projected premium for.2003 of $12,488,979. Chuck Waide spoke about the rate increases and felt the increases, although substantial, were very good compared to other agencies and Commented the City's insurance plan is working well. The Personnel Committee voted not to take any action until the Insurance Committee reviews the requested information and makes its recommendation to stay with Kern Foundation or make a change to Prudent Buyer. ADJOURNMENT The meeting was adjourned at 1:20 p.m. Staff attendance: City Manager Alan Tandy, City Attorney Bart Thiltgen, Assistant .City · Manager Alan Christensen, Risk Manager Patrick Flaherty; Human Resources Manager Carroll Hayden; Benefit Technician Ginger Rubin; Police Officer Harry Scott; and Police Officer.Bill Ware. Others: Chuck Waide, CCAPE; Denny Haynes, CCAPE; and Buck Consultants Tim Beck and Michael Schionning.