HomeMy WebLinkAbout4.10 Medical/Hospital Care Act sit CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: August 8, 1988
SUBJECT Fixing Employer' s Contribution towards the Public
Employees Hospital &Medical Care Act
EXHIBITS ATTACHED Resolution; PERS Health Premiums
RECOMMENDATION Adopt Resolution
(OL/
FINANCIAL STATEMENT: Based on 26 current enrollees and current plans
selected, the annual health insurance premiums paid
would increase by $7 ,431 for Fiscal Year 1988-89.
DESCRIPTION The City currently contracts with the Public
Employees ' Retirement System (PERS) for the provision of health insurance.
This allows the City to offer a wide variety of insurance plans , due to the
fact that PERS obtains enrollees from agencies throughout the State. PERS
allows the employer to designate the amount to be contributed by the City.
PERS has experienced rate increases from several of their providers. In the
case of the indemnity plans , the rates were of such a magnitude that PERS
has made the decision to offer a self-insured option. The cost of the new
program will be significantly more than the amount charged last year for
plans where the employee selected their medical provider. However, PERS
found that the cost of the self insurance program would be less than what
Blue Cross had quoted for the 1988-89 program year. Significant increases
are being experienced by group plans throughout the State.
The Resolution which is currently in place provides for a City contribution
of $230.51 per month. The attached Resolution would provide for a maximum
contribution of $338 per month. The new premiums for plans currently used
by City employees range from $99 . 97 per month to $338 per month. The cost
differentials are based on the type of plan selected and whether the
employee must also cover dependents . A listing of the premiums for those
plans most frequently selected is shown. Although the City ' s maximum
contribution under the proposed Resolution would be $338 per month. Actual
useage is typically less' when the average for all City personnel is
examined.
Staff would recommend that the City Council adopt the Resolution fixing
employer' s contribution under the Public Employees ' Medical and Hospital
Care Act and rescind Resolution No. 70-87 and Section 2 of Resolution No.
69-87 .
COPIES TO:
ITEM NO. 114.�.
RESOLUTION NO. - 88
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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FIXING EMPLOYER'S CONTRIBUTION UNDER THE PUBLIC EMPLOYEES'
MEDICAL AND HOSPITAL CARE ACT AND RESCINDING RESOLUTION NO. 70-87 :
and SECTION 2 OF RESOLUTION NO. 69-87
WHEREAS, Government Code Section 22825.6 provides that a local
agency contracting with the Public Employees ' Medical and Hospital Care Act
shall fix the amount of the employer contribution at an amount not less than
the amount required under Section 22825 of the Act;. and
WHEREAS, the City of Dublin is a local agency contracting under
the Act; and
WHEREAS, on September 14, 1987 , the City Council adopted_
Resolution No. 70-87 fixing the contribution at $230.51 per month; and
WHEREAS, the contribution amount is duplicated in Section 2 of
Resolution No. 69-87, which is designated as an Employee Benefit Plan; and
WHEREAS, the various health plans offered by the Act have
increased premiums significantly due to cost increases within the health
care industry.
NOW, THEREFORE, BE IT RESOLVED that the employer' s contribution
for each employee or annuitant shall be the amount necessary to pay the cost
of his/her enrollment, including the enrollment of his/her family members ,
in,a health benefit plan or plans , up to a maximum of $338.00 per month,
plus administrative fees and Contingency Reserve Fund assessments.
BE IT FURTHER RESOLVED that this contribution shall begin with the
August 1988 premium and that Resolution No. 70-87 and Section 2 of
Resolution No. 69-87 shall be rescinded.
PASSED, APPROVED AND ADOPTED this 8th day of August, 1988.
AYES:
NOES:
ABSENT: .
Mayor
ATTEST:
City Clerk
•
Se'_1r':ted Plans Only- .
- PERS Health Premiums
1987 • 1988
Premium Premium
•
Blue Cross-Prudent Buyer*.
Employee 90.89 • 134.00 . •
Employee. + 1 168.95 253.00
Family • • . 225.62 • 338.00
' Lifeguard
Employee 95.50 109.35 . -
Employee + 1 • 182.25 210.85
Family 245.75 . 286.70 .
Cal-Western Occidental*
Employee • 101.30 134.00.
Employee + 1 195.62' 253.00" • .
Family . 262.78 .338.00 .
Foundation
Employee 94.60 _ , 106.11 .
Employee + 1 186.72 - 211.16
Family 246.07 278.01
• Heals
Employee 89.51 • . 99.97 •
Employee. + 1 • 180.84 : 210.24
. Family 241.68 270.16 - . .
Kaiser - N
• Employee 83.14 89.54
Employee + 1 166.28 179.08.
Family • 230.51 • . 240.87 • . • .
. PERS-Care
• Employee . (Not . - • ` 134.00
Employee + 1 . Offered) 253.00 .
Family ' 338.00
* Plan will be terminated 1/1/89. All enrollees will
automatically be transferred to PERS-Care.
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