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HomeMy WebLinkAbout1974-06-18; City Council; 3114; Employee Health and Accident Insurance-- 9- G - 3 T F. E C I? O F C A R L S B D, C A L I F O R N I A Agenda Bill No. l Date: June 18, 1974 Referred To: ` Subject: Submitted By: EMPLOYEE HEALTH AND ACCIDENT INSURANCE Wm. C. Baldwin Asst. to the City Mgr. Statement of the Matter A committee of City employees, chaired by the City Manager, has studied a number of -health and accident insurance proposals. They have concluded that Crown, Life Insurance Company affords better coverage than the existing Metropolitan policy. The reasons for this conclusion are increased benefits to the employees in ten categories and a premium guarantee for two years (without increase). To increase the present policy to equal Crown Life would result in a premium cost to the City of $18.04 (including $2,000 life insurance for each employee); the present cost is $15.77. The Crown Life premium is $16.16-per employee (including $2,000 life insurance for eacii.employee). The cost to the City to change to Crown Life would be an increase of approximately $800 per year. A factor to be considered is an almost certain increase in the present policy at the September 1, 1974 anniversary date. Additional life insurance with Crown Life would be $0.225 cheaper per $1,000 than _the'existing policy, Excess life insurance above $2,000 would be Ex i %6o 6e's expense. 3. Comparison of Metropolitan and Crown Life Health and $ Accident Policies Staff -Recommendations to the City Manager That the health and accident insurance be written with Crown Life Insurance Co. and a written notice of cancellation sent -to Metropolitan Life Insurance Co. The small additional initial cost to the City for Crown Life coverage is more than offset by the increased benefits. There will almost certainly be an increase in September, 19.74 of the premium for the"vexisting policy. To update the present policy to equal Crown Life would increase the City's cost. I 1 AD No. Date: June 18, 1974 Cit4 Manaler's Recommendation Concur. COUncil'Action ' 6-18-74 The City Council authorized the Employee Health and Accident insurance policy written with Crown Life Insurance Co. and directed that a letter of cancellation be+written to Metropolitan Life Insurance Co. -2- 1 DATE: JUNE 3, 1974 TO: CITY MANAGER FROM: Assistant to City Manager SUBJECT: COMPARISON OF METROPOLITAN AND CROWN LIFE HEALTH AND ACCIDENT POLICIES - COST TO CITY Number of Employees: 204 Number with Dependents: 100 GROUP HEALTH INSURANCE CROWN LIFE METROPOLITAN Basic Benefits Hospital benefit $ 50.00* $ 40.00 Room and board - other hospital services (out patient) 1,250.00* 800.00 Ambulance benefit (120 days) (70 days) Surgical benefit - up to 1,400.00* 1,200.00 (including radiotherapy fees up to $560) Claims will be paid according to 1964 Relative Value Schedule at $7.00 per unit. Diagnostic X-ray and Lab (unsched.) 100.00* -0- In-hospital doctor calls, up to 10.00* -0- Maximum 100.00 Supplementary Accident Expense, up to 500.00* 300.00 Maternity benefit Abnormal, up to 600.00 600.00 Caesarean, up to 600.00 600.00 Miscarriage, up to 200.00 200.00 (then to major medical) (no major medical) HEALTH CONVERSION PRIVILEGE Supplementary Major Medical Expense: Lifetime Maximum 250,000.00* 30,000.00 Calendar Year Deductible 100.00 50/50 (2 deductibles per family) Coinsurance (first $2,500) 80/20 80/20 (Flat) Room and board limit, per day (100% �$e66after)* Intensive care unit, per day 140.00 Pre-existing conditions, up to Policy Maximum COST TO CITY (INCLUDING LIFE INS.$2,000) 16.16 15.77 Crown Life would be $0.39 per employee per month increase to the City; approximately $800.00 total increased cost per year. * Indicates improvements of the existing plan Page 2 June 3, 1974 Subject: Health and. Accident Policies Dependent coverage with present Metropolitan policy is $27.04. Dependent coverage with Crown Life would be $28.58. To add to the Metropolitan policy for lab and X-ray coverage would cost the employeer $0.49 per employee per month. This coverage is only afforded under the Crown Life Policy. To increase the Caesarean coverage would meat an increase of $0.08 to the employer which would mean for identical coverage, Metropolitan would cost $18.04 compared to Crown Life's $16.16, cost to the City. The real advantage that I see is that Crown Life is, iffering a two year premium guarantee which Metropolitan will not. It seems to me that the employees should be polled for continuance of the life insurance benefit. Crown Life is offer-ng life insurance based on the employees salary at $0.63 per $1,000.00. This is cheap insurance and in many cases would be all an employee has. ff WILLIAM C. BALDWIN Assistant to the City Manager WCB:ldg