HomeMy WebLinkAboutItem 8.6 Employer Contribution Medical/Hopital Care (2) CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: July 23, 1984
SUBJECT Fixing Employer ' s Contribution Under the Public
Employees ' Medical and Hospital Care Act
EXHIBITS ATTACHED Resolution Fixing Employer' s Contribution Under the
Public Employees ' Medical and Hospital Care Act
RECOMMENDATION , Adopt Resolution and authorize a transfer from the
Contingent Reserve in the amount of $2 , 475 .
FINANCIAL STATEMENT: Increase of maximum contribution toward employee
health benefits by $25.00 per month
DESCRIPTION At its regular meeting of March 26, 1984, the City
Council adopted Resolution No. 32-84 , Electing to be Subject to Public
Employees Medical Care Act and Fixing the Employer ' s Contribution.
The effective date was established as May 1, 1984 . Due to the City' s entry
into the program late in the fiscal year, it was anticipated that a premium
increase would be received. Attached is a listing of the changes for
insurance programs offered by PERS . The employees will also receive
additional choices through the offering of new plans.
It is recommended that the City Council authorize a maximum contribution of
$224 per month. This will provide a wide range of options for employees .
With the City ' s current 11 authorized full-time positions under the proposed
$224 limit, the City ' s maximum liability is $2, 464/month plus contingency
fees . Based on the actual demographics of the organization and assuming the
maximum amount for vacant positions, the actual premium cost is approxi-
mately $1, 915/month. This is approximately 29% less than the total
potential liability. The proposed change would be effective September 1,
1984 .
The proposed contribution of $224 per month will cover the cost of Blue
Cross/Blue Shield insurance for an employee and one dependant. If an
employee selects a plan costing more than this amount, the employee will pay
the difference. The City has also been advised that the contingency fees
for 1984-85 have been reduced from 3 . 5% to 2 .7%.
It is recommended that the City Council adopt the attached resolution
establishing the City contribution for health insurance for full-time
employees at $224 per month.
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COPIES TO:
ITEM NO. 9'
RESOLUTION NO. - 84
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
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 contri-
bution 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 .
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 $224 . 00 per month plus administrative
fees and Contingency Reserve Fund assessments .
PASSED, APPROVED AND ADOP"'ED this 23rd day of July;
1984 .
AYES .
NOES :
ABSENT :
Mayor
ATTEST:
City Clerk