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
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