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HomeMy WebLinkAboutMinutes 10-28-2002 Special CITY COUNCIL SPECIAL MEETING CITY HALL ANNEX 111 Polk Avenue, Cape Canaveral, Florida Monday October 28, 2002 5:30 P.M. MINUTES CALL TO ORDER: i Council Members Present: I Burt Bruns Mayor Pro Tem Buzz Petsos Mayor Rocky Randels Larry Weber Richard Treverton Others Present: Bennett Boucher, City Manager 4 Susan Stills, City Clerk Andrea Bowers, City Treasurer Nancy Hanson, Recreation Director i C Debra Amicarelli, of Florida Benefits, Inc. 4 3 Health Insurance Review Committee Member: Kenneth Veenstra, Plant Operator i CONSIDERATION: 1. Renewal of Group Medical and Dental Insurance. Mr. Boucher provided background on the subject matter and stated that the Group Health Insurance Committee met with the Benefits Consultant, Ms. Debra Amicarelli and discussed the proposed rate increase. Mr. Boucher related that the employees chose to remain with the current coverage at a 33 percent increase, however the employees were willing to amend the Boston Mutual PPO plan in order to reduce costs. Mr. Morgan inquired about the cost difference between this year's and last year's cost for the dental plan. Ms. Amicarelli said that due to utilization and the limited number of benefits in the area the increase was 69 percent. Mr. Morgan asked about the In- Network cost difference. Ms. Amicarelli replied 5 percent. j 1 Ms. Amicarelli stated that the renewal was based on the employee demographic at the time of the proposed rate increase. Ms. Amicarelli reviewed the market trend , c based on a small group demographic. Mr. Morgan expressed that the co -pay does 1 i I 1 1 Y City of Cape Canaveral, Florida I City Council Special Meeting October 28, 2002 Page 2 (.- not cover the entire cost of the doctor's visit. Ms. Amicarelli replied that the cost of health care is very expensive and the determination has been if employees have the coverage, they will use it. However health care is geared toward catastrophic 1 coverage. Mr. Veenstra related that an employee is resigning to acquire better health care benefits at another city. Mayor Pro Tem Petsos suggested a cooperative health care purchase with another city. Ms. Amicarelli replied that one I demographic might harm premiums for the other. 1 Mayor Randels summarized that three options are presented for a decision. Ms. Amicarelli stated that she bolded the changes on the proposed plans. She pointed out differences in the proposed changes to the prescription drug plan. Mr. Treverton brought out that benefits plan attracts employees and asked if the City is keeping up with other cities. Ms. Amicarelli replied that employers are either passing the cost on to employees or reducing benefits. Mr. Morgan expressed that the Council consider and agree with the Health Committee's recommendation. Mr. Treverton expressed that he knew the increases would happened however he did not wish to see the compensation package diminish. Mr. Morgan suggested amending the Master Application for new employees. Ms. Amicarelli replied that amendments could be made during the renewal period. Council agreed by majority to proceed with the health review committee's recommendation. i i C, Mr. Morgan asked if a group could be formed to purchase insurance. Ms. Amicarelli stated that such a concept is against insurance law. Mr. Weber recommended including a Council member on the health review committee. Mayor Pro Tem Petsos asked if other cities were consulted. Ms. Stills replied that Cape Canaveral was the first to implement an employee deduction and that Cocoa Beach was able to vary their benefits in order to reduce their cost and not pass any cost onto the employee. Ms. Amicarelli replied that she did a comparison based on the City's small group demographic. She stated that I California, New York and Florida are intensive for health care. Mr. Morgan asked if the total amount of claims cost figure was known. Ms. Amicarelli stated the Blue Cross/ Blue Shield does not provide that information. 4 Ms. Amicarelli explained claims caps to Mr. Morgan in that self- funding might be cost prohibitive. Mr. Treverton stated he would like to see a precedent of give and take between the employees and the City. Mr. Weber restated his desire to see the committee begin as soon as possible on cost reviews. A motion was made by Mr. Weber and seconded by Mr. Morgan to accept the Health Insurance Review Committee's recommendation of Blue Cross/ Blue Shield Health Options, Inc. at a 33 percent increase and the Boston Mutual Reduced Out -of- Network Alternative PPO Plan at a 34 percent increase. The vote on the motion carried 5-0 as follows: Mr. Morgan, For; Mayor Pro Tem Petsos, For; Mayor Randels, For; Mr. Treverton, For and Mr. Weber, For i z I City of Cape Canaveral, Florida City Council Special Meeting October 28, 2002 Page 3 ; („, Ms. Hanson inquired about the City's plan for retirees. Ms. Amicarelli responded that most employers are not extending medical benefits to retirees. ADJOURNMENT: There c i no ,t ` ' 9 iness, the chair adjourned the meeting at 6:40 P.M. 0 ay f y ocRoc,„,, Rocky Randels,WAYOR • . *= Susan St! �,, R �� -ERK { ti