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CITY OF LA PORTE <br />INTEROFFICE MEMORANDUM <br />September 27, 2004 <br />TO: Debra Feazelle, City Manager <br />FROM: Sherri Sampson <br />SUBJ: Insurance Questions <br />Please accept this memo as a formal response to the questions posed in the <br />September 24, 2004, Memorandum from Councilmember District 4 Tommy Moser. <br />Question 1: Provide a phase in or plan to charge more for new employees: <br />Option I -We have 33 employees in their first year with the City. By charging all <br />new hires 20% more for health contributions the Plan may bring in an additional <br />$3,500 in a 12 month period. <br />Option II - Humana's plan for charging contribution based on tenure uses the 5 <br />year mark as the divider. With this recommendation employees with 5 years or <br />more tenure pay 10% less than employees with less than 5 years tenure. <br />Schedules are attached for review. <br />Question 2: Indicate how many times during the last three (3) years we had multiple <br />stop loss cases. <br />Over the last three years we have had 2 years (2002 and 2003) with more than <br />1 stop loss claim. In 2001, we had 1 stop loss claim reimbursing the City for <br />$310,524. In 2004 we have not yet had a stop loss claim. We do, however; <br />have one member to date with expenses at $83,268. Stop Loss will pay after <br />the first $1 15,000 of expenses. <br />Question 3: What number of total employee population did not file a claim? <br />We have 56 employees out of 395 that have not yet filed a claim this calendar <br />year. We also have 4 retirees out of 47 that have not filed a claim. <br />