HomeMy WebLinkAboutResolution No. 2016-24Suggested by: Administration
CITY OF KENAI
RESOLUTION NO. 2016 -24
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING
THE CITY MANAGER TO ENTER INTO A CONTRACT WITH PREMERA BLUE CROSS
BLUE SHIELD OF ALASKA TO PROVIDE EMPLOYEE HEALTH CARE TO CITY
EMPLOYEES EFFECTIVE JULY 1, 2016.
WHEREAS, Pursuant to KMC 23.40.120 the City provides major medical, dental, and
vision insurance to its employees; and,
WHEREAS, the City's current provider for this insurance, PREMERA Blue Cross Blue
Shield of Alaska; and,
WHEREAS, PREMERA Blue Cross Blue Shield of Alaska has provided a quote for
alternate coverage utilizing its Plus Envoy Plan at a premium decrease of 5.7 %; and,
WHEREAS, providing quality health care is a component of a comprehensive
compensation package which allows the City to recruit and retain quality employees to
provide the services of the City for its residents.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that the City Council authorizes the City manager to execute a contract with
PREMERA Blue Cross Blue Shield of Alaska, utilizing PREMERA's Plus Envoy Plan, to
provide group medical, dental and vision benefits to the employees of the City of Kenai
effective July 1, 2016
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1st day of June,
2016.
PAT PORTER, MAYOR
A S
San ra o i'gh, Ci Clerk
Approved by Finance:
"Willaye with a Past, C# with a Future"
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014
/j o: Rick Koch, City Manager
From: Terry Eubank, Finance Director
Date: May 25, 2016
Re: Recommendation for passage of Resolution 2016 -24.
The purpose of the memo is to recommend passage of Resolution 2016 -24 that will authorize renewal
of the City's employee health care plan with PREMERA Blue Cross Blue Shield of Alaska. KMC
23.40.120 requires the City to provide medical, dental and vision coverage to its employees. This
coverage has been provided by PREMERA Blue Cross Blue Shield of Alaska since July 2014.
•
Recently the City received a quote to provide the current insurance, PREMERA's Plus Envoy Plan
which at a 5.7% decrease over FY16 rates. .
The following is a financial comparison of the City's current plan and the proposed plan.
FY16 PREMERA
FY17 PREMERA
Difference
Health Care Premium
$1,759,718
$1,664,949
($94,769)
City Self- Insured Deductible
161,850
159,656
(2,194)
FSA/HRA Administration
12,000
12,000
-0-
Employee Life Insurance
16,800
16,800
-0-
Broker Fee
10,000
25,000
15,000
Employee Wellness Program
20,000
20,000
-0-
Total Cost of Health Care
$1 980 36
$
LaU,963
City Funded Portion
$1,805,780 91.18%
$1,726,394 90.94%
($79,386)
Employee Funded Portion
- 174,588 8.82%
172.011 9.06%
(2.577)
Total
$19. 80.368 100.00%
$1 �898 405 100.00%
81963
A comparison of employee monthly health care premiums is as follows:
Monthly Premium
FY16 PREMERA FY17 PREMERA Difference
Employee
$ 72.00
$ 71.00
$ (1.00)
Employee /Child(ren)
134.00
128.00
(6.00)
Employee /Spouse
147.00
140.00
(7.00)
Employee /Family
201.00
191.00
(10.00)
Part time Employee
369.00
363.00
(6.00)
I recommend the switch in plan and believe it is in the best interest of the City and its employees.