HomeMy WebLinkAbout12/03/2014 7A AGENDA BILL
CITY OF BREMERTON 14
CITY COUNCIL
SUBJECT: Partially Self-Funded Medical Study Session Date: N/A
Insurance Program COUNCIL MEETING Date: December 3, 2014
Department: Legal/HR Division
Presenter: Charlotte Belmore
Phone: 473-5926
SUMMARY: Due to the continuous rise in medical insurance costs and changes brought on by the
Affordable Health Care Act, the City's Insurance Benefits Committee, made up of employees from
each bargaining unit and management, began a year-long task of looking at alternatives to KPS
while maintaining the same benefits. Working with our insurance brokers the Benefits Committee
came up with a plan to maintain the exact same services and coverage by changing to a partially
self-funded plan. This means we will be in control of each aspect of our health care costs rather than
paying KPS to manage them. The change to partially self-funded would take effect January 1, 2015.
ATTACHMENTS: Contracts with 1) Third Party Administrator(Cypress), 2) Pharmacy Benefit
Manager(Envision Pharmaceutical Services, LLC), and 3) Stoploss Coverage (Negotiations with the
stoploss provider(s) are ongoing).
FISCAL IMPACTS (Include Budgeted Amount): The following administrative fees are included in the
2015 budget: Third Party Administrative approximately$100,000 annually, Pharmacy Benefit
Manager approximately$25,000 annually, and Stoploss Coverage is approximately$340,000.
STUDY SESSION AGENDA: ❑ No Presentation ❑ Full Presentation
STUDY SESSION ACTION: ❑ Consent Agenda N General Business ❑ Public Hearing
RECOMMENDED MOTION: Move to authorize the Mayor to finalize and execute the contracts, in
substantially the same form as presented, with (1) Cypress Benefit Administrator, LLC, (2) Envision
Pharmaceutical Services, LLC, (3) Montgomery Management/Companion Life Insurance Company,
and in the event a finalized agreement isn't reached with Montgomery Management/Companion Life
Insurance for stoploss coverage, then with HCC Life Insurance Company, and further authorize the
Mayor to execute extensions to agreements as presented therein.
COUNCIL ACTION: [Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
Form Updated 11/02/12