13-R-76 - Health Benefits Calendar Year to Fiscal YearRESOLUTION NO. 13-R-75
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AMENDING THE CITY OF SCHERTZ EMPLOYEE
HEALTH BENEFITS PLAN TIMEFRAME FROM A CALENDAR YEAR
TO A FISCAL YEAR, AND OTHER MATTERS IN CONNECTION
THEREWITH
WHEREAS, the City staff of the City of Schertz (the "City") has recommended moving
the City's employee benefits plan year to match the City's fiscal budget year beginning
10/1I201~.
THAT:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
Section 1. The City Council hereby approves the change in the employee benefits
plan year fi•om a calendar year to match the City's f scat budget year.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals a~•e hereby made a part of this Resolution for all purposes and are adapted as a
part of the judgment and findings of the City Council.
Section 3. All resalutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such canflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 4. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the City
Council hereby declares that this Resolution would have been enacted without such invalid
provision,
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adapted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter SSi, Texas Government Code, as amended,
Sectian 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
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RESOLUTION NO. I3-R-77
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS ADOPTING AMENDMENTS TO THE CITY'S
HEALTH INSURANCE BENFITS FOR CITY EMPLOYEES, AND
OTHER MATTERS IN CONNECTION THEREWITH
WHEREAS, the City staff of the City of Schertz (the "City") has recommended certain
insurance renewals to the City's Medical and Dental Plans
THAT:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
Section 1. The City Council hereby approves the following changes to the City's
Medical, Dental, and Vision Plans:
MEDICAL
The following table shows the cost changes on the Medical PPO Plan, The increase to the City's
medical plan is 5%, which is a monthly increase of $22.67 per employee and an approximate
$82,000 increase to the City's medical plan.
Currcrit Calendar Year Employee Cost E~nplo~~ee Cast
Monthly 2014 Mc}nthly Increase Per Inereasc Pcr ,
' MtdicaTPPO
= Premi~t»~
---- Premiu~v Month Yavl'criocl
_
--
-
-
Em io ee
p Y $453.30 $475.97 $0.00 ---
-
-----
$0.00
Employee &
Children $900.84 $945.89 $22.3$ $10.32
Employee &
Spouse $989,74 $1,039.23 $44.92 $20.61
Employee &
Family $1,289.00 $1,353.46 $59.49 $27.46
Reconnmendcd changes to the medical plan:
1. Remove the HMO and current consumer-driven plan, to which only 5% of all employees
electing medical benefits belong.
2. Add acost-effective, High Deductible Health Plan (HDHP) with an attached Health
Savings Account {HSAj.
3. Employees wha move from the Medical PPO to the HDHP would receive the premium
difference for the Employee Only (EO) option ($1;161.60) and have the choice of
applying that monetary value to a Health Savings Account (HSA) or to their dependent
premium, further reducing their out-of packet expenses.
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2014 PPO ~ 20141IDIIP Decrease in L:mployee Cost
1V~ediial PP0 E Monthly 11~Tontlily Employee Decrease Per
Vs.IfDIIP ~ F'renxium Pre~nixuxx Premium' 1?a Pe~•iod
Employee $475.97 379.17 -$1,161.60 $OAO
Employee &
Children $945.89 $753.52 -$1,146.84 -$44.11
Employee &
Spouse $1,039.23 $827.87 -$1,374.72 -$52.87
Employee &
Family $1,353.46 $1,078.20 -$2,141.52 -$82.37
4. The City received an annual premium refund per the Affordable Care Act in the amount
of $14,064. $3,102 will be refunded to 70 different City employees and $10,962 will be
refunded to the City. Staff recommends the City's portion of $10,962 be split among
employees with dependents who choose the HDHP to subsidize employee dependent
coverage.
Employees who elect the HDHP will have to move to the HSA compliant option under
the City's current medical bridge plan per 1RS rules. Under this plan, the hospitalization
beneft would increase to $1,000 to assist with catastrophic events but the plan would not
include an outpatient surgery benefit that currently exists in the regular medical bridge
plan. The increase in the hospitalization benefit under for the HSA compliant option
would increase $0.40/month per employee, which would be a annual increase of $1,500.
DENTAL
The Traditional PPO Dental did not receive an increase for the 2014 plan year.
Reeomurended changes to the dental plan:
1. Remove the basic HMO plan and replace it with a second PPO option, which will provide
a higher level of coverage {10018010) and a more expansive network than the existing
HMO plan, but at a comparable cost to the existing HMO plan, This change would equate
to a $1.21 monthly increase per employee, which is a $4,385 annual increase. This plan
will become the City's default dental plan and will only pay up to the 12.09/month per
employee for either dental plan. Therefore, employees who cover their dependents and
remain on the Traditional PPO will receive a $1.21/month reduction in their dependent
premiums.
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veutal Pl'O Cturcnt ISM() Proposed 2"~ F.naployee Employee
Vs. CiEN•~•ent iR~lonthly ()~tion PPO ~ Increased fZtcrc~scd Per
HMn f'renzitxnz Plan Monthly Cost ~'ay Peciod C'.~~st
Employee $10.88 $12.09 $0.00 $0.00
Employee -~ 1 $20.65 $26.58 $4.72 $2.18
Employee &
Children NA $30.15 NA NA
Employee &
Spouse $20.65 $26.58 $4.72 $2.18
Employee &
Family $30.98 $47.04 $14.85 $6.85
VIS;CON
The City's Vision plan had a $0.26/month increase per employee per month for the 2014 Plan
year. This is a $942.24 annual increase and a 3.9% annual increase to the vision plan.
1~lonthly
;Czr~7•ent 2014 Renewal lliffer•etzcc in l~nzplc~~~ee Ct~st
11~1ontltl}~ Montlilyr Erti~loyce Decrease Pet'
Vision Prentiun Piczz~ium Premium: Pay'Peziod
Emplo ee $6.63 $6.89 $0.00 $0.00
Em to ee + 1 $13.25 $13.77 $0.26 $0.12
Employee &
Family $17.76 $18.45 $0.43 $0.20
Section 2. The City Council hereby approves payment of necessary premiums for
such coverage to the City of Schertz Employee Benefrts Trust for prompt payment to the
appropriate insurance carriers.
Section 3. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the City Council.
Section 4. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 5. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
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