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HomeMy WebLinkAbout1997-01-07; City Council; 13981; Group Health Insurance Provider Agreement for CityAB # 13, qg/ TITLE: MTG. 1-7-97 APPROVING GROUP HEALTH INSURANCE PROVIDER DEPT. HR AGREEMENT FOR THE CITY OF CARLSBAD DEP‘ CITY CITY t * 9 0 lbs: 2 dQ z I- o 0 a s z 3 0 0 - /“ 13 CITY* CARLSBAD - AGEND~ILL RECOMMENDED ACTION: City Council adopt Resolution No. 9 3- ‘1 Agreement. ITEM EXPLANATION: As a result of health insurance focus group meetings with the Carlsbad Firefighters’ Associatior (CFA), the Carlsbad City Employees’ Association (CCEA) and the City’s management employees, the decision was made to apply for group coverage with Sharp Health Plan as an additional health insurance option for City employees. Open enrollment was held from November 12 to December 13, 1996, and the Human Resources Department was uncertain as to how many employees would elect this new option and at what coverage level. The City of Carlsbad’s Municipal Code requires that any contracts exceeding $25,000 per year must be approved by the City Council; however, it was estimated that the annual cost for the Sharp healt insurance option would not exceed $25,000 during the first year. A total of 10 employees elected Sharp Healthcare as their new health insurance provider for calendar year 1997. Because the number of employees switching to Sharp was higher than expected, and because the employees switching were at higher coverage levels (the majority electing family coverage), the annual cost for the Sharp Health Plan option is estimated to be approximately $35,000 for the first year. This agreement will be ongoing and may be terminable by either party upon thirty (30) days written notice. FISCAL IMPACT: Funds for health insurance have been included in the Operating Budget for fiscal year 1996/97. It is estimated that, due to reduced premium costs and paid claims for employees switching frorr the City’s indemnity plan, the City will realize a cost savings as a result of providing Sharp as a health insurance option. However, because this option is new to the City, the specific cost savings cannot be quantified at this time. EXHIBITS: approving this health insurance provider Group Resolution No. 41-4 1 2 3 4 5 6 7 8 g LO 11 12 13 14 15 16 l7 18 19 20 21 22 23 . 24 25 26 27 28 EXHIBIT 1 a a RESOLUTION NO. 9 7 - 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A GROUP HEALTH INSURANCE PROVIDER AGREEMENT FOR THE CITY OF CARLSBAD. WHERAS, the City Council has determined that it is desirable and necessary to provide group health insurance to the City’s eligible employees and their dependents. NOW, THEREFORE7 BE IT RESOLVED by the City Council of the City sf €arkbad, California, as follows: 1. 2. That the above recitation is true and correct. That the City Council approves the attached Group Agreement (Attachment A) authorizing the approval of Sharp Health Plan as a health insurance provider for the City of Carlsbad. 111 Ill Ill Ill Ill 111 Ill Ill Ill Ill 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2% e e 3. 1996/97. That funds are available in the City’s Operating Budget for fiscal year PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, on the 7th day of January 1997, by the following vote, to wit: AYES: Council Members Lewis, Finnila, Nygaard, Kulchin and Hall NOES: None ABSENT: None ATTEST: /J&& 4 @iLG&xA- ALETHA L. RAUTENKRANZ, City Cle (SEAL) a 0 SHARP HEALTH PLAN GROUP AGREEMENT FOR EMPLOYER GROUPS >SO EXECUTION PAGE A. EMPLOYER GROUP INFORMATION SUMMARY 1. Group Name and Address Citv of Carlsbad 1200 Carlsbad Village Dr.. Carlsbad. CA 92008 2. Group Number 20500 3. Initial Term of this Agreement 01 / 01 / 97 through 12 / 31 / 97 4. Employer Contact PersoxdTelephone Number Julie Clark / 434-2955 5. Annual Open Enrollment Period 11 / 12 / 96 through 12 / 13 / 96 6. 01 / 01 / 97 01 / 01 / 97 Coverage Effective Date After Open Enrollment First Date of Benefit Year (calendar year) 7. Employee Data and Eligibility Information a. Total Number Employees 490 b. Total Number Eligible Employees 390 C. Eligible Employee Definition Permanent/Minimum 30 hour work we Resides or works within San Diego Cow d. Eligible Dependents Spouse, children through age 18, full-t students ages 19 through 24. e. Coverage Effective New Hires: Date of hire. Rehires: Date of rehire. f. Preexisting condition waiting period: None. 8. 9. Plan Account Representative/Telephone Number Rick Leon / 637-6558 Termination Date: End of month for which ureuayment fees are made. Plan Group Service Representative/Telephone Number Audrev Mueller / 637-6577 10. Standard Industry Code 9100 (F : \LRAGTS\LRGROU P . DOC 5 / 12/94) 23 0 0 11. Broker/Consultant: Name Towers Perrin Address 1925 Centurv Park East #1500, Los Angeles. CA 90067 Telephone Number (310) 551-5742 License Number N/A Tax ID Number N/A B. PLAN CONTRACT TYPE(S) AND PREPAYMENT FEES Employer Contribution (Semi-Monthly): Participation of Eligible Employees: 10 Subscribers Enrolled COBRA RATES (when applicable): X Premium Billed (Rates as stated above) Direct Billed (Add 2% administration fee to above stated rates) (F: \LRAGTS\LRGROUP. DOC 51 12/94) 24 e I) C. AGREEMENT EXECUTION An application is hereby made by the undersigned Employer Group for participation Sharp Health Plan’s health care service plan in accordance with the provisions of the Sharp Health PI Group Agreement, the provisions of which are to be made available to all Eligible Employees as defin above and their eligible Dependents desiring coverage thereunder. No enrollment or benefits thereon M accrue until this Execution Page of the Group Agreement is completed, signed and returned to Sharp Hea Plan. By signing hereunder, the Employer Group acknowledges receipt of the Sharp Health Plan Grc Agreement. IN WITNESS WHEREOF, the parties have duly executed this Group Agreement on day and year first above written. By: B. Kathlyhead Title: President & CEO Date: January 7, 1997 By: Title: Company: Citv of Carlsbad Date: January 8, 1997 Mayor (F:\LRAGTS\LRGROUP.DOC 5/ 12/94) 25