HomeMy WebLinkAboutO-2002-2594
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ORDINANCE NO. 2002- a..5'1f
AN ORDINANCE AUTHORIZING AND APPROVING A CONTRACT AMENDING THE
MEDICAL PLAN DESIGN, PROVIDED BY THE CITY OF LA PORTE AND
ADMINISTERED BY THE TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL
EMPLOYEE BENEFITS POOL (TML-IEBP), TO BE EFFECTIVE JANUARY 1,2003;
AUTHORIZING THE CITY MANAGER TO SIGN SAID CONTRACT; MAKING
VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING
COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN
EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council hereby approves and authorizes the contract, agreement, or
other undertaking described in the title of this ordinance, in substantially the form as shown in the
document which is attached hereto and incorporated herein by this reference. The City Manager is
hereby authorized to execute such document and all related documents on behalf of the City of
La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix. the
seal of the City to all such documents. City Council authorizes the amended medical plan design as
described in Exhibit A for employee health claims, to be funded from City of La Porte Employee
Health Services Fund Account No. 014-6144-515-6011.
Section 2. The City Council officially finds, determines, recites, and declares that a
sufficient written notice of the date, hour, place and subject of this meeting of the City Council was
posted at a place convenient to the public at the City Hall of the City for the time required by law
preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government
Code; and that this meeting has been open to the public as required by law at all times during which
this ordinance and the subject matter thereof has been discussed, considered and formally acted
upon. The City Council further ratifies, approves and confirms such written notice and the contents
and posting thereof.
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ORDINANCE NO. 2002-
PAGE 2
Section 3. This Ordinance shall be effective from and after its passage and approval, and it
is so ordered.
PASSED AND APPROVED, this 28th day of October 2002.
CITY OF LA PORTE
BY:~
Mayor
ATTEST:
~4.ilc<tjl)
M a A. Gillett
City Secretary
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested:
ADDroDriation
Requested By:
Source of Funds: Medical Fund
Department:
Account Number: 014-6144-515-6011
Report:
Resolution:
Ordinance: X
Amount Budgeted:
3,500,000.00
Exhibits:
Ordinance
Amount Requested: ':l)c;oo)ooo 00
Budgeted ltem:crES J NO
Exhibits:
Sehedule nf Prnpnlled Rpnpfitll Chang,lI
SUMMARY & RECOMMENDATION
At the July 15, 2002, City Council meeting, staff presented a status report on the Employee
Health Services Fund, Due to rising costs of health care services, Council was notified of the
need to implement several changes to the medical fund. As part of the FY2002-2003 budget,
Council approved an increase of the City's contribution to the medical fUnd by approximately
29% (from $3,500.00 to $4,500.00) per employee. Although the City would continue 100% of
contributions for employee only coverage, employees were required to double their contributions
toward dependent coverage effective October 1, 2002. Contributions by retirees remain
unchanged at this time.
The City must implement even more changes during the current budget year. Staff, the City's
Third Party Administrator (TML-IEBP), and benefits consultant (The Welch Company) propose
changes to the Medical Plan Design (Exhibit A) to become effective January 1, 2003. How the
medical plan is designed determines the percentages of benefits employees would receive for
health care and out-of-pocket dollars employees should expect to pay.
Based on annualized claims for 2002, ($2,700,000.00) the City anticipates savings from the
medical plan redesign of approximately $309,000.00 for the 2003 benefit year, in addition to the
estimated $300,000.00 increased contribution by the City.
Staff Recommendation
Adopt an ordinance authorizing redesign of the medical plan (Exhibit A).
Action Required bv Council:
Adopt an ordinance authorizing redesign of the medical plan (Exhibit A).
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"Exhibit A"
HEALTH SERVICES PLAN DESIGN
CURRENT PROPOSED FOR 2003
MAXIMUM LIfETIME BENEfIT $1,000,000.00 $1,000,000.00
CO-PAY
All doctors $15.00 $25.00
DEDUCTIBLE
Individual:
In Network $200.00 $300.00
Non-Network $400.00 $600.00
Family (3 or more):
In Network $600.00 $900.00
Non-Network $1,200.00 $1,800,00
COINSURANCE
In Network 90% /10% 80% / 20%
Non-Network 70% / 30% 50% / 50%
OUT-Of-POCKET MAXIMUM (employee portion)
Individual:
In Network $1,000.00 $1,500.00
Non-Network No maximum No maximum
Family:
In Network
Non-Network
$2,500.00
No maximum
$3,000.00
No maximum
PRESCRIPTIONS (Rx)
Deductible
$50.00
$50.00
Retail (employee portion):
Generic
Preferred (Formulary)
Non-Formulary + Others
10.00
20.00 or 20%*
30.00 or 20%*
10.00
25.00 or 20%*
40.00 or 20%*
Mail (employee portion):
Generic
Preferred (Formulary)
Non-Formulary + Others
20.00
40.00 or 20%*
60.00 or 20%*
20.00
50.00 or 20%*
80.00 or 20%*
· Whichever is the greater amount