HomeMy WebLinkAbout1995-09-12; City Council; 13299; AMENDMENT TO THE CONTRACT WITH NORTHWESTERN NATIONAL LIFE INSURANCE NWNL AND EXTENSION OF GROUP VISION CARE BENEFITS WITH VISION SERVICES PLAN VSP TO CCEA ELIBIGLE EMPLOYEESI
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A’ d 3 ~17.0~ CARLSBAD - AGENW BILL
AB # - TITLE: DE&
DEPT. HR PLAN (VSP) TO CCEA ELIGIBLE EMPLOYEES CITY n
AMENDMENT TO THE CONTRACT WITH NORTHWESTERN
NATIONAL LIFE INSURANCE (NWNL) AND EXTENSION OF
GROUP VISION CARE BENEFITS WITH VISION SERVICES C,TY E MTG, 9-12-95
RECOMMENDED ACTION:
Adopt Resolution No. 95-Asg amending the City’s contract with
Northwestern National Life Insurance (MWNL) and extending group vision
care with Vision Services Plan (VSP) to members of the Carlsbad City
Employees’ Association (CCEA) who are enrolled in Northwestern National
Life medical insurance.
ITEM EXPLANATION:
The City of Carlsbad has contracted with Northwestern National Life
Insurance (NWNL) to provide group medical, dental and vision coverage for
City employees.
general employees, several enhancements were made to the health
insurance program under Northwestern National Life as of July 1, 1995.
These benefit enhancements included:
1)
Following labor negotiations with the City’s fire and
dental insurance through NWNL for all employees enrolled in Kaiser
medical insurance;
enhanced vision coverage through Vision Services Plan (VSP) for firlE
3nd manaaement employees covered under Northwestern National
Life; and
2)
3) establishment of a wellness program for fire and manaaement
employees covered under Northwestern National Life.
Prior to July 1, 1995, the Carlsbad City Employees’ Association (CCEA)
indicated that a membership vote was required to determine,if the VSP
vision and wellness program benefit enhancements would be implemented
for CCEA members. Consequently, the VSP vision and the wellness
program were implemented for fire and management employees only as of
July 1, 1995.
CCEA has now indicated that the majority of their members would like to
have the VSP vision plan and the wellness benefit extended to all general
employees covered under NWNL medical insurance. An amendment to the
City’s contract with Northwestern National Life is required to exclude
vision care coverage under NWNL and to establish a wellness benefit
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PAGE 2 OF AB# /3A’77
through NWNL for general employees currently enrolled in NWNL medical
insurance. This amendment is attached as Exhibit 2. General employees
covered by NWNL medical insurance will receive enhanced vision benefits
from an outside firm called Vision Services Plan, or VSP. Exhibit 3 is the
application for group vision care required to establish this benefit for the
CCEA eligible employees.
FISCAL IMPACT:
The estimated costs associated with the VSP vision and the wellness
program benefit enhancements for CCEA employees covered by NWNL
health insurance are $52,000 per year, or $40,000 for the balance of
fiscal year 1995/96.
Insurance fund balance.
EXHIBITS:
1. Resolution No. %fds4
2. Amendment to the City’s Contract with Northwestern National Life
3. Application for Group Vision Care with Vision Services Plan (VSP)
These costs will be funded from the City’s Health
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RESOLUTION NO. 95-254
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING THE CONTRACT WITH
NORTHWESTERN NATIONAL LIFE INSURANCE (NWNL) AND
EXTENDING GROUP VISION CARE BENEFITS THROUGH
VISION SERVICES PLAN (VSP) TO ELIGIBLE CCEA
EMPLOYEES.
WHEREAS, the City of Carlsbad has considered the document
entitled “EXHIBIT 2” and finds it in the best interest of the City to
amend the City’s contract with Northwestern National Life (NWNL);
and
WHEREAS, the City of Carlsbad has considered the document
entitled “EXHIBIT 3” and finds it in the best interest of the City to
approve the application for group vision care with Vision Services
Plan (VSP); and
WHEREAS, complete and true copies of said documents are
attached hereto and made a part hereof; and
WHEREAS, sufficient funds are available in the Health
Insurance fund balance to cover the cost of these health insurance
enhancements;
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
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2. That the Agreements referred to in the recitals above
are incorporated in this resolution by reference.
3. That the amendment to the City’s contract with
Northwestern National Life (NWNL), dated October 1, 1995, will be
adopted by the City of Carlsbad effective October 1, 1995, as
evidenced by the authorized signature of the Human Resources
Director on Exhibit 2.
4. That the application for group vision care, dated
October 1, 1995, will be adopted by the City of Carlsbad effective
October 1, 1995, as evidenced by the authorized signature of the
Human Resources Director on Exhibit 3.
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5. That $40,000 will be appropriated from the Health
Insurance fund balance to cover the cost of these health insurance
enhancements.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the
Carlsbad City Council held on the 12th day of SEPTEMBER ,
1995, by the following vote, to wit:
AYES: Council Members Lewis , Nygaard, Kulchin, Finnila, Hall
NOES: None
ABSENT: None
ATTEST:
j ALgH%R!JTE?erk
,I (SEAL)
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Route No
Home Office use or E r .I
To: Northwestern National Life Insurance Company
Box 20 - Minneapolis, Minnesota 55440
Request for Amendment of Group Plan(s)
Please be complete and specific in your request.
Group Plan Name CITY OF CARLSBAD
Group Plan Number(s) AS0 24438-4
Effective Date for Amendment(s) 10/01/1995
(if possible, the effective date should be the first day of a plan month)
Request is hereby made to Northwestern National Life Insurance Company for the following
revision(s) to the Group Plan(s) indicated above:
Terminate vision benefits with "L for claim account 3 General resulting in an AS0 fc
reduction of $.25 per employee per month for the terminated claim account. Vision benefits wil
"L. for all claim accounts has been terminated
Add an annual $250 per family wellness benefit for claim account 3 General to be administerr
through the Reimbursement Account Administration Department in Minneapolis, MN. All clai
accounts will now have the wellness benefit.
dditional space is needed, please use reverse side)
Dated
39279
VISION SERVICE PLAN
APPLIC.ATION FOR GROUP VISION CARE PLAN
qw -\
Vihn Service Plan
P.O. Box 997 100
Sacraiiienro. Calit'omia '35899-9989
Attn: Sales Department
(XOOI XSZ-7600
All applicable quehms must be
coiiipleted accurately .ind in detail to avoid unnecessary
corrcyxmlcn~c and dclaj. .Adcfiiionally. applications must be received
i/itii! i.301 d.g\ iii .id\aiicc LO cii\iirc ilir plan i\ iinplemented by the etfectjy~.J;lte.
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r'ISION SEKr.ICE PI.he
!!l'I.IC.ATION FOK GROUP %.ISION CAKE YI,.\S
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____________________------------------------------------- ~~REEr\.IENT---------------------------------------------
I'liL, IIII~I~~\I~II~II ~IIIII~ hcrch! .ipplie\ lor vi\ion care cobcrage through Vi\ion Service Plan.
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cciLcred by L'SP Rill carry over and remain in force.
95 day ot 5$-2&1""- . IO--
Ann Jensen Human Resources Direct( Title: __
\ hereby Jebignatrd Broker of Record by the above (ipned employer
__________________-_____________________--------------- BROKER/CONSULTANT---------------------------------
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