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HomeMy WebLinkAbout11/09/1998 BAKERSFIELD Patricia J. DeMond, Chair Mark Salvaggio Jacquie Sullivan Staff: Alan Christensen AGENDA PERSONNEL COMMITTEE Monday, November 9, 1998 4:00 p.m. City Manager's Conference Room 1501 Truxtun Avenue Bakersfield, CA 1. ROLL CALL 2. APPROVAL OF AUGUST 19, 1998 MINUTES 3 PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS None 6. NEW BUSINESS A. HEALTH INSURANCE RENEWALS - Hayden 7. ADJOURNMENT AC:jp FILE COPY DRAFT BAKERSFIELD Alan-T~ndy, City Manager Patricia J. DeMond, Chair Staff: Dolores B. Teubner Mark Salvaggio Jacquie Sullivan AGENDA SUMMARY REPORT SPECIAL MEETING PERSONNEL COMMITTEE Wednesday, August 19, 1998 4:00 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order 4:06 p.m. Present: Councilmembers Patricia J. DeMond, Chair; Mark Salvaggio and Jacquie Sullivan 2. APPROVAL OF APRIL 13, 1998 MINUTES Approved as submitted. 3. PRESENTATIONS ., None 4. PUBLIC STATEMENTS None 5. DEFERRED BUSINESS None DR AFT PERSONNEL COMMITTEE Wednesday, August 19, 1998 Page -2- 6. NEW BUSINESS (Item 6.B. Fire Union Letter - was moved to be heard first) A. HEALTH CARE CONSULTANT CONTRACT - Hayden Human Resources Manager Hayden bdefed the committee. The City's.health care consultant contract expired at the end of March and an RFP was sent out. Eight responses were received. After contact by Ms. Hayden, three volunteers from the Insurance Committee (Chuck Waide, Harry Scott and Joe Lozano) worked with staff in reviewing the proposals. The three firms selected to be interviewed were Buck Consulting, AON and The Segal Company. Insurance Committee representatives and staff recommended that Buck Consulting be selected as the Health Care Consultant. Tim Beck from Buck Consulting spoke and responded to various questions, including the contract cost and services to be provided. After discussion, the Personnel Committee agreed with the selection of Buck Consulting and directed staff to forward the agreement to Council. The Committee also directed staff to ensure that the Retirees are represented at the Insurance Committee meetings. B. FIRE UNION LETTER Chief Assistant City Attorney Sherry stated that their office had reviewed the letter and the applicable law in this area. According to the City Charter, except for informational purposes Council could not normally participate in any appointment, promotion or dismissal. The City Attorney's Office has consulted with Human Resources Manager Hayden and after reviewing the procedure used, the City Attorney's Office believes a fair examination took place. Due to the sensitivity of the issue, Human Resources staff prepared an informational report for Councilmembers regarding the issue and measures that will be taken in the future to prevent, to the extent possible, something like this from occurring again. The Committee took no further action. 7. ADJOURNMENT The meeting was adjourned at 4:45 p.m. cc: Honorable Mayor and City Council DBT:jp City of Bakersfield 1999 Health Plan Renewal Projected 1998 Year-End Results (Blue Cross PPO & Dental Indemnity) · We are projecting a 1998 year-end deficit of~ The active medical PPO plan is Projected to have a $597,450 deficit; the retiree medical PPO plan is projected to have a $156,787 deficit; the dental plan is projected to have a $52,687 surplus. · The projected medical plan cost per employee per year (PEPY) is $5,191, compared to $4,071 in paid premium. The projected dental plan cost PEPY is $690, compared to $787 in paid premium. City of Bakersfield 1999 Health Plan Renewal 1999 Health Plan Projection Actives Retirees Total Dental Total Projected 1998 PEPY Paid Claims $4,018 $5,904 $4,478 $634 Projected 1999 Enrollment 509 164 673 542 Annual Trend Medical PPO - 10%; Po( - 15% 10.0% Expenses/Fees- PEPM Expenses $37.00 $37.00 $4.08 Stop Loss $9.12 $9.12 $0.00 Margin - %of Claims 2.0% 2.0% 6.0% Projected 1999 Incurred Costs Paid Claims $2,267,396 $1,075,417 $3,342,813 $378,285 $3,721,097 Reserve Adjustment $50,259 $23,688 $73,947 $5,962 $79,909 Margin $92,706 $21,982 . $114,688 $23,055 $137,743 Plan Administration $225,996 $72,816 $298,812 $26,536 $325,348 Stop Loss $55,705 $17,948 $73,653 $0 $73,653 Total Costs $2,692,062 $1,211,851 $3,903,913 $4.33,837 $4,337,750 Projected 1999 Plan Costs - PEPY $5,289 $7,389 $5,801 $800 $6,601 1998 Current Premium - PEPY $3,527 $5,775 $4,075 $792 $4,867 Buck Proj. 1999 Renewal Adjustment 49.9% 27.9% 42.3% 1.1% 35.6% Blue Cross 1999 Renewal Adjustment 44.1% 28.4% 38.6% -3.9% 32.9% 3 z6-qe,d Z6-ue? ~6~n¥ $6qnP g6-.unf 96~A~ 86~d¥' z6~qe~ 0 © © 0 0 0 City of Bakersfield 1999 Health Plan Renewal Large Claim Results · For the 9/1/97 - 8/31/98 reporting period, the City had 19 claimants with paid claims exceeding $10,000. Two claimants exceeded $100,000 (1 active with $165,187 & 1 retiree with $170,568). All other claim amounts were below $70,000. Total claims above $10,000 were $805,723. · For calendar year 1997, the City had 17 claimants above $10,000 totaling $875,457. Four claimants exceeded $100,000, with the largest claimant generating $198,154 in claims. · The current reporting period represents an improvement in claim severity over calendar year 1997. · A comparative summary for 1996, 1997 and 9/1/97 - 8/31/98 follows: Total Paid Claims $2,111,036 $2,801,239 $2,916,956 Claims > $10,000 $704,532 $875,457 $805,723 % Claims > $10,000 33.4% 31.3% 27.6% 9 :) SULTANTS CITY OF BAKERSFIELD - COMPARE BIWEEKLY RATES 1999-1998 Full Time Employees Group Health Insurance BI-Weekly Rate Schedule for the 1999 Plan Year Effective 12121198 EMPLOYEE CONTRIBUTION = 20% OF PREMIUMS BLUE CROSS MEDICAL :ALIFORNIA CARE MEDICAl KAISER MEDICAL and and and and and and and and and DDS DDS DDS DENTAL HBI DENTAL HBI DENTAL HBI DENTAL BLUE DENTAL BLUE DENTAL BLUE SINGLE CROSS SINGLE CROSS SINGLE CROSS DENTAL DENTAL DENTAL IMedlcal I $80.28I Medical J $63.87] Medical J $5655I [Mental Health $3.01 Mental Health $3.O1 Mental Health $3.01 I Vlsi on $2.42 Vision $1.73 Vis ion $1.73 I Dental $8.08 $8.37 $11.16 Dental $8.08 $8.37 $11.16 Dental $8.08 $8.37 $11.16 Total Premium, $..q3.79 I ] $94.08 $.96.87 Total Premium $76.69 I i $76.98I 79.77 Total PremiumI' $69.3711 $69.6611 $72.45 City PaysI $75D3 $75.27 $77.50 Cib $61.35 $61.59 City PaysI $55.49 $55.73 $,57.96 Emp. 1999 I $18.76 $18.81 $19.37 Emp. 1999 $15.34 $15.39 $15.95 Emp. t999 I $13.88 $13.93 $14.49 Pays- 1998 I $13.85 $13.90 $14.55 $1.4.4.0 $14.45 $15.10 $12.69 $!2.74 $13.39 NET INCREASE $4.91 $4.91 $4.82 NET INCREASE $0.94 $0.94 $0.85 NET INCREASE $1.19 $1.19 $1.10 TWO PARTY TWO PARTY TWO PARTY Medical 15160.57[ Medical $128011 Medical $113.10I Mental Health $4.77 Mental Health $4,77 Mental Health $4.77 Vision $487 Vision $3.46 Vision $3,46 Dental $16.15 $16.70 $22.35 Dental $16.15 $16.70 $22.35 Dental $1615 $16.70 $22.35 Total PremiumI $186.36 $186.91 $192.56 Total PremiumI $152.39I $152,9411 $158.59 Total Premium $137.4811 $138.03 $1436~ City PaysI $149.10 $149.54 $154.06 ty Pay,, I $121.~r $122.36II $126.88 $109.99II $110.43 $114.g5 Emp. 1999 I $37.26 $37.37 $38.60 Emp. 1999I $30.47 $30.58 $3t.71 Emp. 1999 $27.49 $27.60 $28.73 Pays. 1998 ~ $2.7.44.. $27.55 $28.86 I $28.58 $28.69 $30.00 $25.10 $25.21 $26.52 NET INCREASE $9.82 $9.82 $9.64 NET INCREASE $1.89 $1.89 $1.71 NET INCREASE $2.39 $2.39 $2.21 FAMILY FAMILY __ FAMILY Medical ] $240.85 ] Medical $186.74I Medical $160.03I Mental Health $7D4 Mental Health $7.04 Mental Health $7.04 Vision $6.35 ' Vision $4.50 Vision $4.50 Dental $24.23 $24.75 $37.28 Dental $24.23 $24.75 $37.28 Dental $24.23 $24.75 $37.28 city PaysI $222.77 $223.19 $233.21 c~y Pays $178.00 ; $178.42 $188.44 city Pays $156.63 $157.05 $167.07 Emp. 1999 J $55.70 $55.80 $68.31 Emp. 1999 $44.51 $44.61 $47.12 Emp. 1999 $39.17 $39.27 $41.78 Pays - 1998 I $40.97 $41.07 $43.87 $41.74 $41.84 $44.64 $35.79 $35.89 $38.69 NET INCREASE $14.73 $14.73 $14.44 NET INCREASE $2.77 $2.77 $2.48 , NET INCREASE $3.38 $3.38 $3.09 [GR'QP/RATEBIW99.] Ginger Rubin - 10/30F:J8 File name: INSURANCE RATES99 COMPARISON OF R TES 1998/1999 RETIREE'S MONTHLY (UNBLENDED) Effective 01/01/99 Blue Cross Fee for Service Monthly Single 2-Party Family Blue Cross 1999 $397.39 $794.75 $1,192.12 Prescription included $397.39 $794.75 $1,192.12 Mental Health (Pacificare/PSI) $5.95 $7.59 $8.20 Vision - not available $0.00 $0.00 $0.00 TOTAL $403.34 $802.34 $1~200.32 Previous year - Retiree's $315.49 $626.65 $936.79 Net increase/(decrease) $87.85 $175.69 $263.53 California Care * Monthly Single 2-Party Family "J" Contracts 1999 Retiree's Under 65 $139.98 $289.68 $408.63 $149.68 Prescription included Sub Total $139.98 $289.68 $408.63 $149.68 Mental Health (Pacificare/PSl) $5.95 $7.59 $8.20 Vision - MES¢ - Eye wear only $3.75 $7.50 $9.75 TOTAL $149.68 $304.77 $426.58 $149.68 Previous year - Retiree's $139.31 $283.31 $396.31 $138.59 Net increase/(decrease) $10.37 ($21.46) $30.27 $11.09 Monthly Single 2-Party Family "J" Contracts 1999 Retiree's Over 65 $85.33 $171.27 $298.26 $85.94 Prescription included Sub Total $85.33 $171.27 $298.26 $85.94 Mental Health (Pacificare/PSI) $5.95 $7.59 $8.20 Vision - MESC - Eye wear only $3.75 $7.50 $9.75 TOTAL $95.03 $186.36 $3t 6.21 $85.94 Previous year - Reft ree's $88.71 $173.67 $294.12 $79.57 Net increase/(decrease) $6.32 $12.69 $22.09 $6.37 KAISER Monthly Retirees Over & Under 65 Single 2-Party Family Kaiser 1999 prescription included $122.92 $245.84 $347.86 Sub Total $122.92 $245.84 $347.86 Mental Health (Pacificare/PSI) $5.95 $7.59 $8.20 Vision $3.75 $7.50 $9.75 TOTAL $128.87 $253.43 $356.06 Previous year - Retiree's $115.55 $226.80 $318.36 Net increase/(decrease) $13.32 $26.63 $37.70