1985-06-24 Regular Meeting - Laserfiche WebLink

Browse Search

• • CITY OF LA PORTE INTER-OFFICE MEMORANDUM T0: Jack Owen, City Manager 6-19-85 FROM: Richard Hare and a SUBJECT: Proposal for Retirees Medical Plan Coverage AGENDA ITEM Discussion of Proposed Retiree Medical Plan Coverage and Survivor Medical Plan Coverage Agenda Memo A. Retiree Medical Plan Coverage In order to provide medical coverage to retired and retiring City Employees, staff is recommending that medical care coverage and survivor's medical care coverage be provided to retired employees under the City's current medical benefits package. It is proposed that the City provide contributions for retiree's coverage in an amount equal to those made for active employees, for those retirees age 50 and above who are not yet eligible for Medicare Coverage. However, because this age group (50 years of age and above) presents approximately 25% greater health care risk than the overall active work force, it is being recommended that this difference in coverage cost be paid by retirees electing to join this plan. Eligible retirees are those retiring employees who have qualified for the City's state-sponsored pension plan and who were previously covered under the present medical plan during their active employment with the City. Retirees under the proposed plan and who hold Medicare as their primary insurer are approximately 50~ less of an actuarial risk than active employees and therefore the City's contribution on behalf of these retirees should be equal to 50~ of the corresponding active rate contribution. Benefits to either set of retirees will parallel those of active employees. The only other amendment to the City's Plan is to place a lifetime benefit limit for private nursing duty of $20,000. The immediate cost to the City of bringing eligible retirees (10) onto the system is $16~41/mo. for 1985 at present rates. Longer term costs are subject to life expectancy, medical care costs, insurance rate adjustments and inflation.