HomeMy WebLinkAbout1965/05/10-Agenda-Pre-Council r
MINUTES
PRI:-COUNCIL, CONFERENCE
MAY lis, 14I,
Present: Lata : Absent :
I Barr None Nene
2 Eay;lu
3 Kemble
4. Shannon
5. hams,
6 . Deen
f . SLovall
8 . Hoover
9. Jones
I T E M Ru± erred to -
1 . Group Insurance for City Empluyees (I.R. 730 J. P. WOOD:
and M&C C-491 - held over from previous weeks)
1 ) call meeting of Insurance CA, is
The City Mana�!er inrpsired if any Coisncil Mt•wbor4. to review plan and i7Ujv,•tii)n:
had quer tions i vgarding Lhr proposed group insurance
plan for City employees . Councilman Hoover i nmii rt (I _'.) taut legal opinion
Of the Per!,onnel Dime-Lor it records were availahl.,
aL Aetna on the number 01 claims involving treatment 3) get data on insurance Covera
by podiatriFts (practitioner in the care and treat- on non-hospital treatment
ment of the human foot in health and diseasc). The
Personnel Director replied, that to hit knowledge, 4) ask Aetna for facts re tlsrir
while complete records are kept and such inis,rmation cast for podiatrists ' tivatn., i►1
Could he developed, Aetna would not have readily
available such classification of Maims , but Lhat ` ) drat t I.R. transmitLiny,
claims have heen paid by Aetna on foot surgery pertinent iniotmation to Lountil .
perft>nned by podiatrists . The Personnel Director
turther pointed out that under Lhe proposed Blue
Cross-Blue Shield plan fewer claims would bu received
on :imaller surgical steeds because the Blue Cross-
Blue Shield plan provides for a $50 deduction
on surgery,
Councilwoman Deen inquired of Ihu, Personnel
M DirecLur how the City employees felt about the
proposed plan in general and in particular about the
excl>ssion of coverage of medical treatment by
podiatrists . The Personnel Director replied that he
could noL answer this question fully because no survey
had been conducted of thy CiLy employees , but that
the eriployev committee revit-wing thv plan had recom-
mended that it be accepted. The Personnel Director in-
dicated that only a small percentage of the claims made
under Lhe existing Aetna policy were for physical or
medical treatment of injured feet.
Councilman Hoover inquired ut the Personnel Director
it the decision by Blue Cross-Blue Shield to eliminate
payment to podiatrists for medical treatment was an
arbitrary decision on the part W Lhr company, The Per-
sonnel Director stated that to his k.nowlt�dge this was
the case. The Personnel Director further stated that
in the City of Fort Worth, podiatrists may not admit a
patient into a city hospital . A patient can be admitted
Oft AWN
only by a medical doctor after which services may he
rendered by a podiatrist . Under the Aetna policy
surgical payments are made, whether to an M.D. or
podiatrist .
Councilman Jones inquired of the Personnel Director
it the Insurance Committee that studied the proposed
Insurance plan was aware that treatment by podiatrists,
was not recognized by the Blue- Cross-Blue Shield Company.
The Personnel Director replied that the Committee was
not aware of this exclusion.
The City Council requested the presence of. Harley
West, representative of the Blue Cross-Blue Shield Company
in the pre-Council Conference. Councilman Hoover addressed
the first question to Gen_ West asking if podiatrists were
covered in the federal government insurance program that
Blue Cross-Blue Shield has with the federal vovernment .
Gen. West replied that the Blue Cross-Blue Shield federal
government program did provide for payment to podiatrists
for medical treatment, but that the plan proposed to Fort
Worth does not provide for such covdrage. Mayor Barr in-
quired of Gen. West if Blue Cross-Blue Shield recognized
podiatrists in 36 other states Gen. West replied that he
did not know. Gen. West did state that no such coverage
was provided by Blue Cross-Blue Shield in the State of
Texas .
Councilman Hamm inquired of Gen. West the reasons why
Blue Cross-Blue Shield excluded podiatrists from its cover-
age. Gen. West replied that the primary reason for e::clu-
sion was based upon the professional medical opinions of
M.D. 's in thi State of Texas He stated that M.D. 's in the
State of Texas do not recognize podiatrists as practicing
medical doctors , Councilman Hamm pointed out to Gen. West
that the State of Texas does accept podiatrists though by
issuing them a license. Gen. Wast replied that this was
true ,
Mayor Barr inquired of Gen. West if podiatrists were
allowed to operate in hospitals . Gen. West replied that
to his knowledge, podiatrists could operate in hospitals
in the State of Texas . Councilman Hoover asked what per-
centage of group insurance companies paid claims originating
with podiatrists . Gena West replied that he did not know
the answer to this question .
Councilman Shannon inquired which other cities in Texas
the Blue Cross-Blue Shield Company currently had contracts
with. Mr. West replied that the employees in the City of
Dallas , Wichita Falls , and El Paso were substantially
covered by Blue Cross-Blue Shield programs .. Councilman
Shannon inquired if other cities paid part of the employees '
insurance costo Gen. West replied that very few cities at
the present time do participate in the employees ' cost of a
group insurance program , However, Gen.. West pointed out
that a few cities do perform such service and almost all
major private industries provide financial participation on
a group insurance program for their employees . Councilman
Shannon inquired of Gen. West if he considered the 60 per
cent City participation in employee costs provided by the
City of Fort Worth as an example of high participation for
municipalities , Gen, West replied that he had no comparison
oft
of policies in other cities in the United States, but he
did not consider this participation to he too high, especially
in comparison with the general practice in industry.
f Councilman Hamm stated that with the City participating
in the payment of 60 per cent of the employees insurance on
this group insurance program, the City was actually becoming
n .alesman for whichever insurance company it contracted with.
In effect, Councilman Hamm stated, the City in its participa-
tion, is assisting the in:,kirance company in selling its pol-
icies . Councilman stated that at this point lie would rather
use the 60 per cent financial participation by the City for
employees as direct payment to employees rather than as an
indirect subsidy. Gen. West stated that the City's partici-
pation in such a group insurance program was a desirable
benefit to City employees . lie stated that such participation
assists the City in holding good employees.
Councilman Stovall inquired of Gen. West if the Blue
Cross-Blue Shield Company was a stock or a co-op company.
Gen. West replied that life insurance policies issued by the
B1uL Cross-Blue Shield Company came under the provisions of
a stock company. He stated that the type of plan proposed
for the City of Fort Worth was known as a hospital service
plan.
Councilman Stovall stated that he asked the City Attorney
laet week for a legal opinion re^arding the right of the City
to contract with Blue Cross-Blue Shield. The City Manager
replied that the City Attorney will provide the opinion.
The City Manager then pointed out to the Council the fact
that riany cities in the United States do participate at a
hiy,her than 60 per cent participation rate on group insurance
prof,rams . The City Manager quoted the 1964 Municipal Year
Book regarding cities who participate in health insurance pro-
,,,ram plans .
Councilman Hoover inquired what the cost to the City would
be increase from 40 or 45 per cent to 60 per cent participa-
tion. The City Manager replied that the increase from 45 per cent
under the present plan to 60 per cent world-east-the-6ity-ap-
prexin►ate}y-$}�;A9A-mereT--He-etaEed- under the new plan would
cost the City approximately $12 ,000 more, lie stated that because
the total premiums are less under the Blue Cross-Blue Shield plan,
the increase in participation for employees only from 45 per cent
to 60 per cent would amount to only $12,000. Councilman Hoover
requested that decision by the Council on this proposed plan be
postponed for one more week.
Councilman Jones inquired of Gen. West if chiropractors as
well as podiatrists were excluded from coverage under the Blue
Cross-Blue Shield proposed plan. Gen. West replied that this was
true and that Christian Scientist medical practitioners were also
excluded from coverage .
Councilman Hamm inquired of Gen. West what he meant by the
statement "substantial enrollment." Gen. West replied that the
phrase "substantial enrollment" involved just how many City em-
ployees were actually enrolled in the group insurance program
in a city. Councilman Stovall stated that lie did not think the
benefits were as great in the proposed plan as that in the Aetna
plan. The City Manager replied that the benefits offered in the
proposed plan were significantly higher and more beneficial to
City employees than the benefits currently derived by `
City employees participating, in the Aetna plan. The City
Manager further stated that the City would become less in-
volved in claim procedure, with Lite Blue Cross-Blue Shield
plan and this less involvement would provide approy.imately
a $5,00(1 direct savings to Lite City.
Councilman Hanmi stated that there were a Lot of things
controlled under this proposed Blue Cross-Blue Shield pro-
gram that were not controlled in other policies . Ile stated
that lie would like some research done in this area providing
some comparable data for thc City Council 's consideration.
Councilman Kemble inquired of Councilman Hamm it the
Insurance Committee that submitted this proposed plan for
the Council 's consideration had not already studied these
questions . Councilman Harmt replied that he was sure the
Insurance Committee had :,tudied these issues, but that it
had been submitted to the Council and it was time for the
City Council to consider fully the iss+ces at hand .
Mayor Barr requested the City Manager to obtain addi-
tional information for the Council to consider.
Councilman Shannon inquired of the City Manager if
somv companies had not been allowed to hid on the City
plan. The City Manager replied that only Texas companies
Laving $1,OOU,000 in hospitalization premium income were
allowed to bid, plus selected national companies .
The consensus of the City Council was to postpone de-
cision on the proposed insurance plan for one more week
and such action was taken at the regular Council meeting
ITEMS 2 - 8 WILSON - please note and follow up.
The City Manager inquired of the Council if they
had any questions regarding items 2 through 8 on thc-
on the May 10th pre-Council Conference agenda. Council-
man Ea..1e requested the staff to place street numbers or
address numers on the land M&C's and/or Informal Reports
to assist the Council in locating specific projects .
The City Manager replied that such addresses would be sup-
plied in the future.
The Council had no other questions regarding other
itr_ms on the Anda.
3. Mayor Barr announced the upcominb National League of DENTON - Agenda in June
Cities Conference to be held in Detroit from July 24-28 .
The Mayor mentioned that this was the same organizational
conlerence attended in Houston approximately two years
ago by many of the members on the current Council . Coun-
cilman Hamm inquired of the Mayor if this conference would
he a boud place to publicize our winning of the All-America
City Award. Mayor Barr replied that he thought this could
E,e done if it was done moderately. Mayor Barr requested
the staff to place this item on the agenda the second Mon-
day in June.
4. Meeting of Tarrant County Municipalities , May 18, 1965, DENTON - letter to Councilric•n
hosted by the City of Fort Worth, from Mayor
Mayor Barr brought to the attention of the Council
Meml,ers the upcoming meeting of the Tarrant County Municipalities May 18, 1965 in the
Round U2 Inn. He requested that as many Council Members as nossiblo plan to attend.
5. All-America City Celebration May 17, 1905 DENTON - GOODMAN
Mayor Barr reminded Council Members of the upcominy,, May l7th All-America City cV1('i11atir11
* and re nested as many oc the Council Members as possible to he present at the function.