R-89-1229 - 1/26/1989WHEREAS, the City of Round Rock has requested proposals to
provide health insurance coverage for City employees, and
WHEREAS, Blue Cross /Blue Shield has submitted the best proposal,
and
WHEREAS, the City Council wishes to accept the proposal of Blue
Cross /Blue Shield to provide health insurance coverage for the City,
Now Therefore,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the proposal of Blue Cross /Blue Shield is hereby accepted
as the best proposal, and the Mayor is hereby authorized and directed
to execute on behalf of the City a contract with Blue Cross /Blue
Shield to provide health insurance coverage for the City.
RESOLVED this 26th day of January, 1989.
ATTEST:
C38RESBLUEC
RESOLUTION NO. /007
2fizz/0-Z.
MIKE ROBINSON, Mayor
City of Round Rock, Texas
DATE:
SUBJECT:
ITEM:
January'24, `1989
Council Agenda, January 26, 1989
8H. Consider a resolution authorizing the Mayor to enter into
an agreement with Blue Cross /Blue Shield for the City
Health Insurance.
STAFF RESOURCE PERSON: Linda Gunther
On 12/15/88 Blue Cross /Blue Shield informed the City,
effective 2 /1/89 that there would be a substantial increase
of 38.3% in our Group Health Insurance. Total Impact to the
City is $90,510.00.
The Health Insurance increase is due to medical are
inflation rising faster than general inflation; the num-
ber one factor is the City has a high loss ratio. There
is more money being paid out in claims than money earned
on premiums.
After contacting eleven major insurance carriers for
bid proposals Blue Cross /Blue Shield was the only bid
presented. All other insurance companies declined due
to our high loss ratio.
Recommendation: Continue coverage with current carrier
Blue Cross /Blue Shield with the following changes in coverage
to take effect 2/1/89 resulting in a 0% increase to the City.
Present Plan Benefits
Deductible: $200.00
Maximum $600 per family
Hospital /Medical: 80%
Hospital Expenses: Deductible per
admission, $250 ded. waivered when
admission is certified
Coinsurance: $1,000 Stop -loss
per family $3,000
Prescription Drugs: $5.00 ea.
$:3.00 ea. generic
Preventive Care: Routine Physical,
Immunizations, well baby care,
vision exams and hearing exams
100% max. two years $200.
Accidental Injury: Med- Surgical
deductible waivered 100% up to
$300. over $300. 807.
Recommendation
Deductible: JOO
/ Per Fay,; /y
Hosp. /Med.:
70 7
Hospital Expenses:; 0.
R. Cer1' kr,
F /r /,'Tc. ✓Al «JSI9 it' ,VOt Cepl
Coinsurance: 'ft,Tna 0
114Y Per
r- ,o.I-1//y Nave.
Prescription Drugs: 70 7d
/00 `, ri)r ieaer,c..
Preventive Care: AFTkr dad
70 7
Accidental Injury: 79 % a
,F7;'-r ded.
2/1/89- 5/1/89 revaluate alternative options available
within insurance industry, such as; HMO; Self Insurance,
and Cafeteria Plan section 125,
Economic Impact: No 88.3% increase in premiums. City cost
and Employee dependent cost to remain the same.
Assuring that all City of Round Rock employees have
the best possible coverage of health insurance available,
at a affordable rate for additional dependent coverage.