HomeMy WebLinkAbout2022-09-08; 2023 Open Enrollment Updates (Districts All); Rocha, LauraTo the members of the:
<;ITY COUNCIL
Date q /8' /;i:J CA ✓ CC L
CM v ACM v DCM (3)~
Council Memorandum
September 8, 2022
To:
From:
Via:
Re:
Honorable Mayor Hall and Members of the City Council
Laura Rocha, Deputy City Manager, Administrative Services
Judy von Kalinowski, Human Resources~tor
Geoff Patnoe, Assistant City Manager l§:
2023 Open Enrollment Updates (Districts -All)
{city of
Carlsbad
Memo ID #2022099
This memorandum provides information related to employee benefits for 2023 open enrollment.
Background
On January 1, 1990, the City of Carlsbad contracted with CalP~RS for medical insurance benefits.
Every calendar year, CalPERS negotiates medical insurance premiums directly with the medical
insurance companies. The city receives rates for the upcoming calendar year in late July.
Discussion
Medical insurance rates will increase January 1, 2023, for 9 out of 13 CalPERS's available medical
plans. The highest increase was 27% for Health Net Salud y Mas. The city has negotiated with its
bargaining groups a city contribution of 80% of the average cost of all plans combined.
Historically, the lowest cost medical plans resulted in an unused benefit c:redit that employees
could apply towards the cost.of other benefit plans such as dental, vision, flexible spending
accounts or additional accidental death and dismemberment insurance.
As a result of the 2023 rate increases, 84% of benefitted employees will experience a decrease in
their take home pay. The annual impact will range from approximately $42 to $4,376 (see
Attachment A). It is anticipated that approximately 93 employees will pay an additional $4,376 a
year (or $365 per month) towards their preferred medical plan plus the out-of-pocket costs for
additional benefit premiums that were previously paid for with unused benefit credits.
Simultaneously, Human Resources staff negotiated a rate reduction that resulted in an annual
savings of approximately $171,000 on short-term and long-term disability benefits. With this
savings we can expand our offering of city-paid life insurance benefits and stay within our
approved budget. Effective Jan. 1, 2023, we will offer city-paid spouse and child life insurance in
the amount of $20,000 and $10,000 respectively for an annual cost of $35,000.
Next Steps
On September 9, 2022, Human Resources staff will advise our bargaining groups of the rate
changes and the anticipated impact. Human Resources staff will also send an employee
Administrative Services Branch
Human Resources Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2440 t
Council Memo -2023 Open Enrollment Updates (Districts -All)
September 8, 2022
Page 2
communication in preparation for open enrollment. On September 12, 2022, information
regarding medical insurance rates will be posted on the Human Resources page of the intranet.
Attachment: A. Annual Increase to Employee Cost for Medical Insurance
B. Survey Data from Comparative Cities
cc: Scott Chadwick, City Manager
Cindie McMahon, City Attorney
Attachment A
Annual Increase to Employee Cost for Medical Insurance
# of Impacted Annual
Plan Coverage Level Employees Impact
HEALTH NET Single 52 $ 1,628
SALUD Y MAS EE+ 1 21 $ 3,268
Family 93 $ 4,376
Single 8 $ 1,411
PERS PLATINUM EE+ 1 12 $' 2,835
Family 11 $ 3,814
Single 23 $ 1,118
PERS GOLD EE+ 1 15 $ 2,248
Family 29 $ 3,050
Single 17 $ 609
SHARP EE+ 1 11 $ 1,230
Family 21 $ 1,727
ANTHEM HMO Single 13 $ 455
SELECT EE+ 1 15 $ 923
Family 27 $ 1,328
Single 57 $ 422
KAISER EE+ 1 33 $ 857
Family 69 $ 1,242
PORAC Single 1 $ 360
(only for CPOA EE+ 1 2 $ 852
employees) Family 1 $ 756
UNITED Single 26 $ 42
HEALTHCARE EE+ 1 21 $ 97
ALLIANCE Family 54 $ 254
Total impacted 632 out of 752
employees {84%)
*based on employee enrollments as of July 2022
Health -Market CONFIDENTIAL
Maximum Monthly City Contribution appendix Attachment B
CFA CCEA
1 Vista $2,656 1 Vista $ 2,638
2 Poway $ 2,277
2 Poway $2,277 Top 3rd 3 San Marcos $ 2,197
3 San Marcos $2,197 $2,109 4 Encinitas $ 2,106 Top 3rd .. 5 Imperial Beach $ 1,875 $1,801
4 Encinitas $2,106 6 San Diego City . $ 1,833 ◄
5 Solana Beach $2,015 7 Carlsbad $ 1,764
8 Santee $ 1,719
6 North Cnty Fire $1,972 9 Oceanside $ 1,688
7 Huntington Beach $1,864 10 Coronado $ 1,682
8 Carlsbad $1,764
11 San Diego County $ 1,662
12 La Mesa $ 1,625
9 Rancho Santa Fe $1,648 13 Solana Beach $ 1,497
10 Escondido $1,456 14 Del Mar $ 1,485
15 National City $ 1,434
11 Oceanside $1,446 16 Escondido $ 1,355
17 El Cajon $ 1,350
18 Chula Vista $ 1,255
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