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HomeMy WebLinkAbout139-99 RESOLUTIONRESOLUTION NO 139-99 A RESOLUTION AUTHORIZING THE RENEWAL OF THE BLUE CROSS/BLUE SHIELD GROUP MEDICAL CONTRACT FOR POLICY YEAR 1/1/2000 THROUGH 12/31/2000; AND APPROVAL OF AN EMPLOYER CONTRIBUTION INCREASE TO COVER ESCROW ACCOUNT DIFFERENTIAL. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS* Section 1. That the City Council hereby authorizes the renewal of the Blue Cross/Blue Shield Group Medical contract for policy year 1/1/2000 through 12/31/2000; and approves an employer contribution increase to cover escrow account differential. A copy of the contract is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 2nd day of November , 1999. ATTEST: eather Woodruff, City Cler FI % r APPROVED' B F ed Hanna, Mayor APPLICATION by EXHIBIT A Arkansas BlueCross BlueShield An Independent Licensee of the Blue Cross and Blue Shield Association ARKANSAS BLUE CROSS AND BLUE SHIELD A MUTUAL INSURANCE COMPANY 601 Gaines Street Little Rock, Arkansas 72201 GROUP APPLICATION City of Fayetteville (herein called 'Applicant") for a Group Policy covering -the -employees of Applicant and the eligible dependents of such employees. In making this application; Applicant agrees to•the terms of the Group Policy, including but not limited to the Covenants of the Policyholder, and to pay the required premium. This Application is made and delivered in the State of Arkansas and is governed by the laws of Arkansas. This Application is incorporated in and made a part of the Group Policy. Signed at FAYETTEVILLE, ARKANSAS , this NOVEMBER 5TH 19 99 City of Fayetteville By: Applicant Authorized Signature ARKANSAS BLUE CROSS AND BLUE SHIELD A MUTUAL INSURANCE COMPANY Accepted By: GA -1 6/95 Authorized Signature PROXY I hereby appoint the Board of Directors ("Board") of Arkansas Blue Cross and Blue Shield, A Mutual Insurance Company ("Company"), as my proxy to act on my behalf at all meetings of members of the Company. This appointment shall include such persons as the Board may designate by resolution to act on its behalf. This proxy gives the Board, or its designee, full power to vote for me on all matters that may be voted upon at any meeting. The annual meeting of Members is held each year at the home office of the Company located at 601 Gaines Street, Little Rock, Arkansas, on the third Monday of March, at 1:00 PM. If the third Monday of March is a legal holiday, then the meeting will be at the same time and place on the next day after, which is not a legal holiday. Special meetings may be called upon notice mailed not less than ten (10) nor more than sixty (60) days prior to such meeting. This proxy, unless revoked, shall remain in effect during my membership in the Company. I may revoke this proxy in writing by advising the Company of such at least five (5) days prior to any meeting. I may also revoke my proxy by attending and voting in person at any Members' meetings. 113 West Mountain, Fayetteville, AR • 72701 Address Dated this 5Ts City of Fayetteville MEMBER NAME Group Number 090041 (CMM) & 024813 (PPO) By: Signature and Title day of NOVEMBER , 19 99 ADDENDUM TO LARGE EMPLOYER APPLICATION FOR GROUP INSURANCE The insurance laws of the State of Arkansas require the benefits outlined below be made available on an optional basis. You must either Elect or Reject each of the following: Psychiatric Care Benefits This optional coverage provides increased benefits for the treatment of psychiatric conditions limited to a maximum of eight (8) inpatient/partial hospitalization days or forty (40) outpatient visits per Calendar Year. Substance Abuse Treatment Benefits This optional coverage provides benefits for the treatment of drug abuse, including alcoholism. The Company will pay the percentage set out in your Schedule of Benefits, up to $6,000 during any twelve (12) month period. Benefits shall not exceed two (2) admissions per lifetime. Speech and Hearing Impairment Coverage This optional coverage provides benefits which will parallel all other medical conditions when you receive treatment for speech or hearing impairment. A rejection of this coverage will limit the benefit to $500 of your charges per Calendar Year. Mammography Screening This optional coverage provides one mammogram during the time when women are between the ages of 35 and 39. One mammogram every two years (or one mammogram per year, if recommended by a physician) for women age 40 to 49. One mammogram annually for women age 50 or older. Services also include mammograms, where recommended by a physician, for women whose mothers or sisters have a history of breast cancer, regardless of age. Licensed Professional Counselor Benefits This optional coverage provides for payment of services provided by licensed professional counselors subject to the same limitations as set forth in the policy for mental health coverage. Psychological Examiner Benefits This optional coverage provides for payment of services provided by psychological examiners subject to the same limitations as set forth in the policy for mental health coverage. City of Fayetteville ELECT REJECT E Group Name "av// iget.c:geel PERSONNEL DIRECTOR NOVEMBER 5, 1999 Group xecutive / Administrator/s Signature & Title Date LARGE GROUP ELECTION FORM 1/98 STAFF REVIEW FORM XX Agenda Request Contract Review Grant Review FOR THE FAYETTEVILLE CITY COUNCIL MEETING OF NOVEMBER 2, 1999 FROM: DON BAILEY Name PERSONNEL Division ADMIN. SERVICES Department ACTION REQUESTED: RENEWAL OF BCBS GROUP MEDICAL CONTRACT FOR POLICY YEAR 1-1-2000 THROUGH 12-31-2000. INCREASE EMPLOYER CONTRIBUTION TO COVER ESCROW ACCOUNT DIFFERENTIAL. COST TO THE CITY: $1,527,310 (q.000&c6 Cost of this request • SEE ATTACHED LISTING Account Number Project Number $1,673,877(1.000 gtq-) Category/Project Budget 0 Funds used to date $1,673,877 Remaining Balance HEALTH INSURANCE Category/Project Name. Program Name Fund BUDGET REVIEW: Budgeted Item �� OI ti494 Budge Coordinator Bud et Adjustment Attached s vit Administrative Services Director CONTRACT/GRANT/LEASE REVIEW: GRANTING AGENCY: i a/i F/gfi Accounting Man Date G/i4d a (WLia iv - s� Ici{Brnal Auditor City •ttorne PurchasincgOfcer /0 -/9-51, Date iti-at-qq Date ADA Coordinator Date Date STAFF RECOMMENDATION: RECOMMEND COUNCIL APPROVE Division Head 1144 Adrninistrative Services Director RENEWAL ACTION /D -/S-7, Date Date Date AiJ'/'i Date Cross Reference New Item. Yes No Prev Ord/Res t Orig. Contract Date- City of Fayetteville, Arkansas Health Insurance Expense - 2000 Budget Fund Program Health 1010 General 0150 Mayor's Administration 7,578 0210 City Attorney 9,422 0310 City Prosecutor 15,089 0350 Hot Check 7,578 0500 Economic Development 6,691 0600 Cable Administration 5,733 1100 Administrative Services Director 4,902 1210 Personnel Administration 9,422 1310 Accounting & Audit 24,644 1330 Budget & Research 11,267 1350 Billing & Collections 15,222 1360 Internal Auditing 1,911 1410 General Maintenance 26,389 1420 Janitorial 9,489 1510 City Clerk 11,333 1610 Procurement 5,667 1710 Information Technologies 26,355 2010 Criminal Cases 9,522 2020 Probation & Fine Collection 1,911 2030 Small Claims & Civil Cases 9,456 2600 Central Dispatch 45,467 2710 Animal Patrol/Emergency Response 6,689 2720 Animal Shelter 27,411 2900 Support Services 76,429 2940 Patrol Warrant 265,865 3010 Prevention 11,267 3020 Operations 261,776 3030 Training & Continuing Education 3,756 5200 Parks Administration 11,333 5220 Athletics & Recreational Transfers 4,394 5260 Park Maintenance 22,733 5300 Traffic Adrninistration & Enforcement 5,496 5310 Traffic Engineering & Planning 5,667 5320 Traffic Control & Parking Meter 13,178 5450 Public Lands Maintenance 17,000 6200 Public Works Director 9,422 6210 Engineering Plans & Specifications 19,322 6220 Engineering Operations & Administration 10,773 6230 Right of Way Acquisition 9,613 6240 Public Construction Management 14,980 6300 Planning Management 23,689 6400 Inspections 26,489 1,112, 328 2100 Street 4100 Street Maintenance Administration 4110 Right of Way Maintenance 4120 Street Maintenance 4130 Drainage Maintenance 5530 Sidewalks & Trails 13,178 11,333 35,911 13,311 13,244 86,977 City of Fayetteville, Arkansas Health Insurance Expense - 2000 Budget Fund Program Health 2180 CDBG 4930 C.D. Administration 1,911 4940 Housing Rehabilitation 5,667 4960 Public Services 5,284 12,862 2250 Parks HMR 9250 Parks Maintenance HMR 18,911 18,911 2930 Drug 2960 Drug Enforcement 12,393 12,393 5400 Water & Sewer Meter 1820 Meter Operations 61,444 1830 Meter Maint. & Backflow Prevention 18,844 80,289 W&S Maint 4000 Water and Sewer Administration 30,178 4310 Water Distribution 38,240 4330 Water Storage and Pump Maintenance 7,511 4410 Sewer Main Maintenance 53,262 5620 Water & Sewer Connections 8,704 137,895 5500 Solid Waste 5000 Operations & Administration 16,933 5010 Commercial Pickup 30,111 5020 Residential Pickup 39,666 5060 Recycling 33,933 5070 Composting 33,000 153,644 5550 Airport 3940 Airport Landside Operations 9,560 3950 Airport Airside Operations 5,596 15,156 9700 Shop 1910 Vehicle Maintenance 43,422 43,422 Total Health Insurance - All Funds 1,673,877 FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: Mayor Fred Hanna and the Fayetteville City Council FROM: Kevin Crosson, Administrative Services Director Yet Don Bailey, Personnel Director Z23,_ DATE: October 14, 1999 SUBJECT: Employee Group Health Contract The contract renewal date for the City's Blue Cross Blue Shield group health and endorsed dental plans is January 1, 2000. Our current group contract was adopted by the Council 1-1-98. The term of this contract is for one year with four additional one year options for renewal to be exercised annually with the agreement of the City and Blue Cross. Exercising the 1-1-2000 renewal is the second of the four one-year options for renewal. Our group medical plan incurred unfavorable claims loss ratios over the past several years which resulted in premium increases. This trend has now decelerated with current incurred losses within the underwriter projections. Consequently, Blue Cross Blue Shield has offered to renew for one year, with no increase in premium or benefit change within the plan. This is confirmed by the group application forms received and the Memorandum dated 10-13-99 from Paul Teichart, Group Underwriter, a copy of which is attached. At the close of the 1999 policy year we will have exhausted the escrow account reserves which were established utilizing premium refunds under the earlier retrospective funding arrangement. This account has been used to partially pay for premiums. Currently, the amounts are $4.00 per month for an employee only premium and $21.00 for a family premium. The projected annualized total of this contribution is $77,932. Considering there is no increase in the premium for the year 2000, it is recommended the City absorb this differential and not increase the employee paid portion of the premium. The year 2000 proposed premium schedule is as follows: EMPLOYEE ONLY COMP/MAJOR MEDICAL PPO EMPLOYEE PAID $11.06 0.00 EMPLOYER PAID S159.26 $149 88 TOTAL MEDICAL $170.32 $149.88 DENTALEMPLOYEE PAID $13.26 $14.26 TOTAL PREMIUM $184.58 $164.14 FAMILY COMP/MATOR MEDICAT PPO EMPLOYEE PAID $99.27 $49.79 EMPLOYER PAID $31/96 $312 97 TOTAL MEDICAL $412.23 $362.76 DENTALEMPLOYEE PAID $49 97 $49 97 TOTAL PREMIUM $462.20 $412.73 The projected annual employer funding based on the current count of 242 employee only contracts and 286 family contracts is $1,527,310. Provisions in the amount of $1,673,877 for the group medical premium will be included in the year 2000 budget. OCT 13 1999 14:57 FR RBCBS FRYETTEVILLE' 501 527 1=X23 TO 97187698 Memorandum To: Don Bailey From: Paul Teich Date: 10/13/99 Re: City of Fayetteville Renewal Association # 036 The renewal for the January 1, 2000 will be a rate pass and a benefits pass. The benefits will remain the same with the dual option of CMM and PPO. CMM benefits: $100 deductible X 2, 80% coinsurance, $5,000 Stop loss X 2, $500 SAE, $3/$10 Rx copay with the followmg rates. Single $170.32 Family $412.23 PPE: benefits: $100 deductible X 2, 80%/60% coinsurance, $5,000 in network stop loss X 2, $10,000 out of network stop loss X 2, PPO SAE, Wellness benefit, $3/$10 Rz copay with the following rates. Single $149.88 Family $362.76 Dental benefits remain the same, $50 deductible, 100% preventive, 50% Restorative to $1,500 maximum, with 50% ortho to $1,000 lifetime. Single $14.26 Family $49.97 If you have any questions, please call me at (501) 527-2322. • RESOLUTION NO. A RESOLUTION TO ESTABLISH THE CITY OF FAYETTEVILLE AS A CITY OF CHARACTER WITH THE INTERNATIONAL ASSOCIATION OF CHARACTER tf a S. WHEREAS, the people of our community desire to make our city a place where families are strong, streets are safe, education is effective, business is productive, neighbors care for each other, and citizens are free to make wise choices for their lives and families; and, WHFREAS, we recognize that individuals are responsible for their choices based on moral standards of universally recognized character qualities such as obedience, honesty, truthfulness, diligence, generosity, kindness, loyalty and courage; and, WHEREAS, there is a need for more positive role models among our young people to help prevent delinquency; and, WHEREAS, many current problems will be alleviated when our citizens live by positive character qualities which distinguish between right and wrong; and, WHEREAS, encouraging people by recognizing positive character qualities has resulted in an increase in morale and safety; and, WHFREAS, the emphasis of positive character qualities in every sector of society can only occur as individuals commit themselves to exemplifying character in their personal lives and inspiring others to do the same; and, WHEREAS, our community should be a safe place where character is exemplified, taught and strengthened. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF 'I HE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby pledges our commitment to character and to do all in our power to become known as a City of Character by promoting character in our schools, businesses, homes, houses of worship, city government, media and community groups, and we urge our citizens to join us. PASSED AND APPROVED this day of , 1999. APPROVED: By: Fred Hanna, Mayor ATTEST: By: Heather Woodruff, City Clerk FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Don Bailey, Personnel Director From: Heather Woodruff, City Clerk Date: November 22, 1999 Attached is a copy of the resolution approving the renewal of the Blue Cross/Blue Shield Group Medical contract. The original will be microfilmed and filed with the City Clerk. cc. Yolanda Fields, Internal Auditor • 4314. � 39-99 AMENDMENT TO THE ARKANSAS BLUE CROSS AND BLUE SHIELD-'IL+sMv11RxrZD GROUP CONTRACT FOR CITY OF FAYE 11EVII,LE-PPO Group Number 024813 Schedule A of the Arkansas Blue Cross and Blue Shield Group Contract is amended to show the rates effective 01/01/00 Charges for each enrolled employee shall be as follows: Monthly Charge Per Covered Employee ONE PERSON FAMILY COVERAGE COVERAGE HEALTH $149.88 $362.76 DENTAL $14.26 $49.97 TOTAL $164.14 $412.73 Initial charges shall be paid on the Effective Date and no coverage shall be in effect until such payment is received by the Plan Subsequent charges shall be payable on or before the same day as the Effective Date of each month thereafter. This Amendment becomes a part of the Arkansas Blue Cross and Blue Shield Group Contract. ARKANSAS BLUE CROSS AND BLUE SHIELD, A Mutual Insurance Company 601 Gaines Street Little Rock, Arkansas 72201 AMENDMENT TO THE ARKANSAS BLUE CROSS AND BLUE SHIELD GROUP CONTRACT FOR CITY OF FAYEI IEVILLE Group Number 090041 Schedule A of the Arkansas Blue Cross and Blue Shield Group Contract is amended to show the rates effective 01/01/00 Charges for each enrolled employee shall be as follows: Monthly Charge Per Covered Employee ONE PERSON FAMILY COVERAGE COVERAGE HEALTH $170.32 $412.23 DENTAL $14.26 $49.97 TOTAL $184.58 $462.20 Initial charges shall be paid on the Effective Date and no coverage shall be in effect until such payment is received by the Plan. Subsequent charges shall be payable on or before the same day as the Effective Date of each month thereafter. This Amendment becomes a part of the Arkansas Blue Cross and Blue Shield Group Contract. %ivraids Robert L. ShoP to President ARKANSAS BLUE CROSS AND BLUE SHIELD, A Mutual Insurance Company 601 Gaines Street Little Rock, Arkansas 72201