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File #: 1374-2018    Version: 1 Name:
Type: Consent Calendar Status: Passed
File created: 4/18/2018 In control: CITY COUNCIL
On agenda: 5/1/2018 Final action: 5/1/2018
Title: Employee Healthcare Plan Design Changes for Fiscal Year 2018/19
Attachments: 1. ATCH 1 - Resolution, 2. EX A - “Proposed Alternative” Plan Changes Effective 7-1-18
To: Honorable Mayor and Members of City Council

From: Brian Cochran, Finance Director

Prepared By: Brian Cochran, Finance Director

Employee Healthcare Plan Design Changes for Fiscal Year 2018/19


Adopt a resolution authorizing the City Manager to execute amendments to agreements with employee healthcare providers to implement plan design changes for healthcare insurance services for the plan year beginning July 1, 2018.

The City offers healthcare benefits to eligible City employees (including dependents and retirees), as approved by City Council through negotiated memoranda of understandings ("MOUs") with represented employees, and through resolutions providing benefits to unrepresented employees. The MOUs and resolutions document the level of benefits offered, and the maximum monthly premium that will be paid by the City, and the portion of the cost (if any) which is required to be paid by the employee. The City's bi-annual budget includes the City's costs of funding these healthcare benefits at the levels approved by the City Council.

The City implements the healthcare benefits provided to City employees through agreements with private healthcare providers. The City's current healthcare providers include Kaiser Permanente, Western Health Advantage, a not for profit health care service plan, Delta Dental of California and Delta Care, a service of Delta Dental of California. Healthcare rates are set annually. Each year, several months in advance of the effective date, the City receives notification of healthcare rates for the coming twelve-month period. The City is required to execute amendments with each provider reflecting the revised monthly healthcare premiums.

For the upcoming fiscal year 2018/19, City staff received preliminary premium quotes from the two healthcare providers based on the existing benefit levels, co-pays, prescription drug coverage, etc. Premiums under t...

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