13-R-77 - Amendments to Health PlanRESOLUTION NO. l.3-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 I , The City Council hereby approves the fallowing 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,
l Current Calendar Year € Employee Cost Employee Cz~st
IVlontftly 2014 lVlorttl~ly Inc~easc 1'cr Increase Per
11~~edical PY0 Prcrxiiutn Ptetluut~r ~Vionth Pay Pcriat~
Employee $453.30 $475.97 $0.00 --
$0.00
Employee &
Children $900,84 $945.89 $22.38 $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
Recommended 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 (HSA).
3. Employees who move from the Medical PPO to the HDHP would receive the premium
difference for the Employee Only (EO} option ($1,I61:60) and have the choice of
applying that monetary value to a Health Savings Account (HSA} or to their dependent
premium, fu~•ther reducing their out-of-pocket expenses.
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> Yeaz•13~
2014 PPO 20 t 4 HT)IIP Decrease in Employee Cast
Medical PPO ` 'Monthly Monthly Employee Decrease Per
Vs. HD~IP Prein~inz Preznitz~z t'remium
~ Pay Period
Employee
$475.97 µ.
379.17 -
-$1,161.60 -. _
$0.00
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.
S. 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. Undez• this plan, the hospitalization
benefit 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.
Recommended 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 (100180/0) 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 $4,3$5 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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I
F ~~ -
llental PP0
Vs. Curreizt Cturcnt HMO
Monthly Proposed 2"`~
()~~tion PPO Fntployec
Increasc~l Eniploycc
Increased Per
IINIO Pretniuut `Plan Monthly Cast Pay Period Cost
Employee $14.88 $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
VISION
The City's Vision plan had a $0.26/month increase per employee per month for the 2014 Flan
year. This is a $942.24 annual increase and a 3.9% annual increase to the vision plant,
Cut1°ettt
2014 Rezic~val ` ~ <lontltl}'
Differcztce in
Ezrtployee Cast
Montltly IVlotttltl}- Et~ployee llccrease Per
Vision Pren}item Preznittn~ k'remitm 1'a~'`Periocl
_-_
Employee $6.63 $6.89 $0.00 $0.00
Emplo 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 far
such coverage to the City of Schettz Employee Benefits Trust for prompt payment to the
appz•opriate insurance carriers.
Section 3. The recitals contained in the preamble hereof ate hereby found to be true,
and such recitals are hereby made a paz•t 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, oz• 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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