HomeMy WebLinkAbout08 EMP DENTAL PLANS 09-18-00AGENDA )RT
MEETING DATE: SEPTEMBER 18, 2000
NO. 8
09-18-00
TO'
WILLIAM A. HUSTON, CITY MANAGER
FROM'
ARLENE MARKS, DIRECTOR OF HUMAN RESOURCES
SUBJECT:
RENEWAL OF EMPLOYEE DENTAL PLANS
CHANGE IN.PROVIDERS FOR EMPLOYEE ASSISTANCE PROGRAM
RECOMMENDATION'
1. Authorize staff to contract with Managed Health Network for provision of the City
Employee Assistance Program.
2. Renew the Blue Cross Dental Plan 550 - Prepaid, Blue Cross Dental Plan A with
Orthodontia and Concordia Dental Plan TCA 30 - Prepaid contracts..
3. Appropriate an additional $1000 from unappropriated General Fund reserves to
Account #01-203-8820.
FISCAL IMPACT: Approximately $1000.
DISCUSSION'
Each year the City reviews its employee benefit plans and rates to determine if changes
are needed. This is also the time of year that we request our broker solicit competitive
bids for these benefit plans and programs.
EMPLOYEE ASSISTANCE PROGRAM
The City provides all of its regular employees with an Employee Assistance Program
(EAP). This program is currently provided through a contract with PacifiCare Behavioral
Health (PBH). The current PBH program allows each employee a benefit of 6
counseling sessions per incident at the rate of $2.81 per employee per month. PBS has
discontinued our current plan and has offered a plan with lesser benefits (5 counseling
sessions per incident) at a higher rate; $3.52 per employee monthly.
Because of the rate increase, combined with the reduced benefit, we requested our
broker to solicit competitive bids for plans consistent with the current benefit level.
Several companies responded to the solicitation. The most comparable and cost
effective program offered is through Managed Health Network (MHN). This is a
program similar to our current PBS program, with a benefit of up to 6 counseling
Sessions per incident, at a rate of $2.92 per employee monthly.
Staff is requesting $1000 of the unappropriated general fund reserves be transferred to
Account #01-203-8820 to cover the cost.
DENTAL
The City offers its employees a choice of two prepaid, HMO type dental plans and one
PPO/indemnity type dental plan. Blue Cross currently provides both a PPO and HMO
plan and United Concordia (previously MIDA) provides an alternate HMO type dental
plan. Blue Cross has agreed to maintain its rates at the current premium level for the
next calendar year. United Concordia has proposed a modest increase of 4.9%.
Staff is recommending renewing 'the contracts with our current dental providers and
monthly premiums as follows:
Blue Cross Prepaid Plan 550 Blue Cross Plan A United Concordia
Employee $16.57 $35.77 $14.03
Employee + 1 $33.06 $71.53 $27.40
Family $48.73 $89.40 $39.01
The City pays the full cost of dental premiums for its management employees. Since
most management employees are enrolled in the Blue Cross plans, which will have no
increase in premiums, the City will not incur additional costs for this benefit.
Additionally, all other employees pay for their dental plan selections utilizing cafeteria
plan contributions; thus any minimal increases for this benefit would be absorbed by the
employee.
The City's four employee organizations have indicated their support for the renewal of
our current dental contracts and the change to Managed Health Network as the new
provider for our EAP plan.
Arlene Marks, SPHR
Director of Human Resources
S:~rlene Correspondence\Staff Report F_AP & Dental Renewal 2000.doc