HomeMy WebLinkAbout06/13/2005 B A K E R S F I E L D
~/~'~'~"-' Harold Hanson, Chair
Staff: Carroll Harden Zack Scrivner
For: Alan Tandy, City Manager Jacquie Sullivan
AGENDA SUMMARY REPORT
SPECIAL MEETING · PERSONNEL COMMITTEE
Monday, June 13, 2005- 11:00 a.m.
City Manager's Conference Room, Suite 201
Second Floor, City Hall, 1501 Truxtun Avenue, Bakersfield, CA
1. ROLL CALL
Called to Order at 11:03 a.m.
Present: Councilmembers Harold Hanson, Chair; and Zack Scrivner
Councilmember Jacquie Sullivan arrived at 11:12 a.m.
2. ADOPT MAY 31, 2005 AGENDA SUMMARY REPORT
Adopted as submitted.
3. PUBLIC STATEMENTS
4. DEFERRED BUSINESS
A. Report on out-of-network utilization
At the Committee meeting on May 31, 2005, Chuck Waide, SEIU-CCAPE,
requested a breakdown on the use of out-of-network medical providers by
actives and retirees.
Human Resources Manager Carroll Hayden gave an overview'on out-of-network
use by actives and retirees and answered questions on the information provided
by Buck consultants, which was included in the Committee packet.
Consultant Mike Schionning provided additional information on the way the Blue
Cross plan works. If a class of providers isn't available in-network, such as
ambulance services or anesthesiologists, those services would be paid at the
in-network reimbursable, rate as the active/retiree does not have a choice'of
providers. Also if an in-network physician refers a patient to an out-of-network
physician, those services would also be paid at the in-network rate.
Agenda Summary Report
Personnel Committee Meeting
June 13, 2005
Page - 2-
B. Review and Committee recommendation on Health Plan design changes
At the March 16 and May 31, 2005 Personnel .Committee meetings the
consultants from Buck (formerly Mellon) gave a presentation on calendar year
2006 health insurance plans, and recommended the following health plan design
changes to reduce projected premium increases:
Rate Impact
PPO Plan
· Change coinsurance to 90% in-network and 60% out-of-network -4.1%
· Increase out-of-network out-of-pocket maximum to $5,000 -0.4%
· Add $250 per admission hospital copayment -0.9%
· Add $75 emergency room copayment -0.7%
Total recommended medical changes to PPO Plan -6.0%
HMO Plans
· Increase office visit copay to $15 -!.7%
· Add $250 per admission hospital copayment -0.8%
· Add $75 emergency room copayment -0.6%
Total recommended medical changes to HMO Plans -3.0%
Blue Cross Dental Plan
· Change prosthodontic service to 60% -5.1%
· Human Resources Manager Carroll Hayden gave a brief review on the above
health plan changes and the following recommendations by Buck:
For 2006 calendar year retirees qualified for Medicare Part D who participate
in Kaiser Senior Advantage and Blue Cross Senior Secure plans take
advantage of the Medicare Advantage pDp option;
· For the BlueCross PPO plan, make the changes for the Wrap Around plan.
However details on the Wrap Around plan will not be available until July.
· For the Blue Cross HMO plan, develop a five year phase-in plan to unblend
the rates for the actives and retirees and take the first step (pending more
accounting information before making a final decision on a five-year
process).
Staff recommended approval of the health plan design changes due to the City
budget constraints and the cost savings. The consultants have projected
premium increases of $900,000 for calendar year 2006. The City pays 80% of
employee premiums. The health plan design changes are projected to save
$620,000.
Agenda Summary Report
Personnel Committee Meeting
June 13, 2005
Page - 3-
Committee Chair Hanson commented that the Personnel Committee is at a
disadvantage being under tight time constraints when reviewing such difficult
issues on recommendations for cost saving health plan design changes and
concerns from employees and retirees. Recommendations must be made for the
budget adoption before June 22nd, and the preliminary information on 2006
health plans from the insurance companies was not available until March. He
requested staff if possible to get the information sooner next year to allow more
time for the Committee to make its recommendation.
Committee Member Scrivner agreed, but expressed the cost savings being
discussed are to incentivize the use of lower-cost alternatives when employees
and retirees go for health care.
Committee' Member Sullivan agreed it would be'" good to have more time for
review if it Were possible. However, plan design changes to achieve cost
savings are going to be necessary for the long-term, and it will require changes
in behavior for everyone when making choices for health care services in order
to get the best care for the least amount of money.
Margaret Ursin expressed concerns regarding retirees receiving small cost of
living increases and every year the cost of retiree health insurance increases.
Chuck-Waide commented in the past the Employee Insurance Committee has
met and been able to come to agreement on plan design changes or cost
increases, and this year the Employee Insurance Committee is not in agreement
with the health plan design changes.
Committee Member Scrivner explained the Council has some tough budget
choices to make in order to meet the needs for road repair, put police on the
streets, increase staffing, and provide the services being requested by the
citizens.
Committee Chair Hanson expressed no one wants to ask the employees to
accept changes or increased rates. However, this is not just happening in
Bakersfield--health care costs are increasing for all companies everywhere.
Committee Member Scrivner made a motion the Committee approve the health
care design changes recommended by Buck consultants to the PPO Plan,
HMO Plans, Blue Cross Dental plan, and Medicare Part D.
The Committee unanimously approved the motion.
Agenda Summary Report
Personnel Committee Meeting
June 13, 2005
Page - 4-
5. COMMITTEE COMMENTS
6. ADJOURNMENT
The meeting was adjourned at 12:15 p.m.
Attendees: City Manager Alan Tandy; Assistant City Manager Alan Christensen;
Assistant City Manager John Stinson; City Attorney Ginny Gennaro; Human
Resources Manager Carroll Hayden; Finance Director Gregory Klimko; Vic Mabry
and Paul Smith, Fire Department; Sandra Morris, Mike Reed and Bill Ware, Police
Department; City Clerk Pam McCarthy; Ginger Rubin, Human Resources Benefits;
Chuck Waide and Pete Rodriguez, SEIU-CCAPE; Tim Beck and Mike Schionning
from Buck; Darlene Denison, Hall Ambulance; and Margaret Ursin, retiree.
cc: Honorable Mayor and City Council
S:~C\05PersonnelCom mitteeP05jun 13summary