HomeMy WebLinkAbout08/28/2006 B A K E R S F I E L D
Harold Hanson, Chair
Zack Scrivner
Jacquie Sullivan
Staff: Carroll Hayden
SPECIAL MEETING NOTICE
PERSONNEL COMMITTEE
of the City Council - City of Bakersfield
Monday, August 28, 2006
10:00 a.m.
City Manager's Conference Room, Suite 201
Second Floor, City Hall, 1501 Truxtun Avenue, Bakersfield, CA
AGENDA
1. ROLL CALL
2. ADOPT JUNE 22, 2006 AGENDA SUMMARY REPORT
3. PUBLIC STATEMENTS
4. DEFERRED BUSINESS
A. Report on solicitation renewal results and Committee recommendation on
2007 Medical Insurance Plan - Hayden
5. COMMITTEE COMMENTS
6. ADJOURNMENT
BAKERSFIELD
Staff: Alan Christensen Zack Scrivner
For: Alan Tandy, City Manager Jacquie Sullivan
AGENDA SUMMARY REPORT
SPECIAL MEETING · PERSONNEL COMMITTEE
Thursday, June 22, 2006 - 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 11:00 a.m.
Present: Councilmembers Harold Hanson, Chair; Zack Scrivner; and Jacquie Sullivan
2, ADOPT NOVEMBER 3, 2005 AGENDA SUMMARY REPORT
Adopted as submitted.
3. PUBLIC STATEMENTS
4. NEW BUSINESS
A. Report and Committee recommendation on 2006-07 Medical Insurance
Plan
Human Resources Manager Carroll Hayden explained 'it is time to review the
results of the Blue Cross PPO, HMO, and dental plans for 2005, take a
preliminary look at 2006, and recommendations on preparing for 2007. She
introduced Mike Schionning and Tim Beck from Buck Consultants.
Consultant Mike Schionning explained Blue Cross will be issuing final results
in July, which will be used for renewal purposes. The projections being
reported today are preliminary and the final results will be brought back to the
Committee after July 2006.
Agenda Summary Report Page 2
Personnel Committee Meeting ~. *~-~,~-,,, ~ :~ .
Thursday, June 22, 2006 ~, ~;?.',:~ ~.'~-, ~ ~
FOr calendar year 2005 the initial projections show the plans should produce
a gain of approximately $215,000. This is based on preliminary plan
experience available in April for the Blue Cross PPO and dental plans. Final
results will be provided by Blue Cross in July.
Calendar year 2006 shows overall the Blue Cross HMO, PPO and dental
plans are running somewhat better than anticipated when compared to the
premium rates. These estimates are based on data through Apdl 2006. The
actual renewal will use data through June 2006.
Blue Cross projections for calendar year 2007 show the following estimated
premium increases:
· HMO plan increase of 11.4%
· PPO plan increase of 13.1%
· Dental plan increase of .8%
The Blue Cross plan premiums for 2007 at this time are projected to increase
1.1.7% overall.
Based on initial discussions, Kaiser is expecting premium increases between
10% and 15%.
The Consultant provided very preliminary estimated dollar amounts for total
premiums for 2007.
City Manager Alan Tandy pointed out the estimates for total premium dollars
for 2007 provided by Buck Consultants did not reflect the hiring of 147 new
employees, which will increase the total premiums. The City budget
calculations are based on the number of employees,' times the actual
premium rates for 2006, plus an estimated increase in premiums.
Consultant Mike Schionning stated for calendar year 2007, the consultants'
recommendation is that they market the Blue Cross medical plans to ensure
the City is receiving market competitive rates. He further recommended
insurance plans should not be purchased on pdce alone. Qualifications and
service are equally important considerations.
City Manager Alan Tandy agreed with marketing the plans. However, each
health insurance company has its own list of medical providers and that
should be a factor when shopping the plans. There was a great deal of effort
last year to encourage employees to go to providers within the .plans as a way
to cut costs. If it is necessary to change companies due to premium savings,
care should be used to ensure the providers on the plans for the most part
will not cause the employees great disruptions with the need to change
doctors and dentists.
Agenda Summary Report ~ Page 3
Personnel Committee Meeting
Thursday, June 22, 2006
Chuck Waide, CCAPE, also agreed with marketing the plans to see if there
are better rates available, but expressed the importance of employe, es being
able to stay with their current doctors with as little network disruption as
possible.
Committee Chair Harold Hanson was in agreement with.the recommendation
from the consultants to market the Blue Cross medical plans to other
companies to ensure the City's current health insurance plan premiums are at
market competitive rates. The Committee Members unanimously agreed with
the recommendation.
5. COMMITTEE COMMENTS
6. ADJOURNMENT
The meeting was adjourned at 11:35 a.m.
Attendees: City Manager Alan Tandy; Assistant City Manager Alan Christensen;
Assistant City Manager JOhn Stinson; Deputy City Attorney Bob Sherry; Finance
Director Nelson Smith; Human Resources Manager Carroll Hayden; City Clerk Pam
McCarthy; Ginger Rubin, Human Resources Benefits; Chuck Waide and Pete
Rodriguez, CCAPE; Tim Beck, Mike Schionning, and Vivian D. Neudeck from Buck
Consultants
cc: Honorable MaYor and City Council
S:~AC\06 Personnel\P 06'jun 22 summary.doc