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HomeMy WebLinkAboutO-2002-2594 . e 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. . e 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 It . . . 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). lr-pR. Date e e . . "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