HomeMy WebLinkAboutOrdinance 14408Ordinance No. / / L/~/ V
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GROUP
HEALTH FUND IN THE AMOUNT OF $1,761,090 FOR THE PURPOSE OF FUNDING THE RENEWAL
CONTRACTS WITH PACIFICARE OF TEXAS, INC AND PACIFICARE LIFE ASSURANCE COMPANY FOR
HEALTH MAINTENANCE ORGANIZATION HEALTH BENEFITS, PREFERRED PROVIDER ORGANIZATION
HEALTH BENEFITS, AND ADMINISTRATION OF THE CITY'S SELF-FUNDED, INDEMNITY TYPE PLAN
AND RENEWAL OF CONTRACT WITH LINCOLN RE-RISK MANAGEMENT SERVICES, INC., FOR STOP-
LOSS INSURANCE COVERAGE FOR THE CITY'S SELF-FUNDED MEDICAL BENEFITS, MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR ORDINANCES AND REPEALING ALL PRIOR ORDINANCES IN
CONFLICT HEREWITH, AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS.
SECTION 1
That in addition to those amounts allocated to the various City departments for the Fiscal Year 2000-01 and in the Budget of the City
Manager, there shall also be increased estimated receipts and appropriations in the group health fund in the amount of $1,761,090 for the
purpose of funding the renewal contracts with PacifiCare of Texas, Inc. and PacifiCare Life Assurance Company for health maintenance
organization health benefits, preferred provider organization health benefits, and administration of the City's self-funded, indemnity type plan
and renewal of contract with Lincoln Re-Risk Management Services, Inc., for stop-loss insurance coverage for the city's self-funded medical
benefits.
SECTION 2.
Should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of
competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this
ordinance, which said remaining provisions shall be and remain in full force and effect.
SECTION 3
That this ordinance shall be cumulative of Ordinance No. 14286 and all other ordinances and appropriations amending the same except in
those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance
said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4
This ordinance shall take effect and be in full force after the date of its passage, and it is so ordained.
APPROVED AS TO FORM AND LEGALITY
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Assist City Attorney (,y
Dale, r
~~'7-~0
Adopted
//-B-DO
Effective
ATTACHMENT 1
FY2000-2001 FY2000-2001 FY2000-2001
Monthly Employee City
Premium Contribution Contribution
ACTIVE EMPLOYEES
HMO-10
Employee Only $150 46 $21 60 $132.45
Employee and Spouse $410 58 $128 18 $282.93
Employee and Child(ren) $364 08 $109 00 $256 16
Employee and Family $484 35 $145 47 $338 54
HMO-5
Employee Only $180 55 $53 45 $132.45
Employee and Spouse $492.71 $215 13 $282.93
Employee and Child(ren) $436 88 $186 07 $256 16
Employee and Family $581 94 $248.75 $338.54
PPO
Employee Only $165 85 $33 40 $132.45
Employee and Spouse $452.58 $169 65 $282.93
Employee and Child(ren) $401 32 $145 16 $256 16
Employee and Family $534 55 $196 01 $338 54
Indemnity
Employee Only $268 47 $68 50 $199 97
Employee and Spouse $705 82 $303 62 $402.20
Employee and Child(ren) $664 05 $261 35 $402.70
Employee and Family $856.58 $352.09 $504 49
1
FY2000-2001 FY2000-2001 FY2000-2001
Monthly Retiree City
Premium Contribution Contribution
NON-MEDICARE ELIGIBLE
HMO-10
Retiree Only $261 87
Retiree and Spouse-A $523 75
;Retiree and Spouse-H
Retiree and Child(ren)-C 5378 78
Retiree and Family-B S640 65
_._
Retiree and Family-G
Surviving Spouse-D $261 87
Surviving Family-E $378 78
Surviving Child-F $116 91
HMO-5
Retiree Only
Retiree and Spouse-A
Retiree and Spouse-H
Retiree and Child(ren)-C
Retiree and Family-B
Retiree and Family-G
Surviving Spouse-D
Surviving Family-E
Surviving Child-F
$344 87
$689 75
$483 42
$827 96
$344 87
$483 09
$138.53
PPO
Retiree Only
Retiree and Spouse-A
Retiree arid Spouse,,.H
Retiree and Child(ren)-C
Retiree and Family-B
~~tetiree and Family-G
Surviving Spouse-D
Surviving Family-E
Surviving Child-F
$0 00
$119 45
$89 37
$133 73
$119 45
$133.73
$89 37
$76 14
$271 75
__ ~
$185 37
$305 58
$195 59
$229 43
$109.20
$261 87
$404 30
$289 41
$506 92
$142.42
$245 05
$27 54
$268 73
$418 00
$298 05
$522.38
$149.28
$253 66
$29 33
$288.66 $24 58 $264 08
$577 31 $168 59 $408 72
$417 51 $124 91 $292.60
$706.18 $193 85 $512.33
$288 66 $144 03 $144 63
$417 5'I $169. 27 $248.24
$128 86 $100 33 $28 53
2
FY2000-2001
Monthly
Premium
NON-MEDICARE ELIGIBLE
Indemnity
Retiree-In
Retiree-Out
Retiree and Spouse-A
Retiree and Spouse-H
Retiree and Child(ren)-C
Retiree and Family-B
Retiree and Family-G
Surviving Spouse-D
Surviving Family-E
Surviving Child-F
$576 04
$576 30
$1,149 01
$811 99
$1,374 30
$572.98
$798.26
$235 95
FY2000-2001
Retiree
Contribution
$61 39
$0 00
$286.51
$245 75
$329 91
$225 12
$193 73
$184 36
FY2000-2001
City
Contribution
$514 65
$576 30
$862.50
3
$566.24
$1, 044 39
$347 86
$604 53
$51 59
FY2000-2001 FY2000-2001 FY2000-2001
Monthly Retiree City
Premium Contribution Contribution
MEDICARE ELIGIBLE
HMO-10
Retiree Only $127 06 $0 00 $127 06
Retiree and Spouse-A $388 93 $119 45 $269 48
Retiree and Spouse-H $254 11 $116 56 $137 55
Retiree and Child(ren)-C $243 96 $89 37 $154 59
Retiree and Family-B $505 84 $133 73 $372.11
Retiree and Family-G $371 01 $133 73 $237.28
Surviving Spouse-D $127 06 $116 56 $10 50
Surviving Family-E $378 78 $133 73 $245 05
Surviving Child-F $116 91 $89 37 $27 54
HMO-5
Retiree Only $127 06 $0 00 $127 06
Retiree and Spouse-A $476 17 $199 48 $276 69
Retiree and Spouse-H $254 11 $116 56 $137 55
Retiree and Child(ren)-C $269 82 $113 09 $156 73
Retiree and Family-B $614 37 $233 30 $381 07
Retiree and Family-G $401 11 $161 34 $239 77
Surviving Spouse-D $127 06 $116 56 $10 50
Surviving Family-E $483 09 $229 43 $253 66
Surviving Child-F $138.53 $109.20 $29 33
PPO
Retiree Only $140 04 $11 91 $128 13
Retiree and Spouse-A $428 71 $155 94 $272.77
Retiree and Spouse-H $280 11 $140 41 $139 70
Retiree and Child(ren)-C $268 92 $112.27 $156 65
Retiree and Family-B $557 68 $181 19 $376 49
Retiree and Family-G $408 96 $168 54 $240 42
Surviving Spouse-D $140 04 $128 48 $11 56
Surviving Family-E $417 51 $169.27 $248.24
Surviving Child-F $128 86 $100 33 $28 53
~J`
4
FY2000-2001 FY2000-2001
Monthly Retiree
Premium Contribution
MEDICARE ELIGIBLE
Indemnity
Retiree-In $222.20 $25 67
Retiree-Out $222.20 $0 00
Retiree and Spouse-A $799 79 $201 44
Retiree and Spouse-H $453 62 $117 06
Retiree and Child(ren)-C $462.75 $142.84
Retiree and Family-B $1,025 43 $248 64
Retiree and Family-G $679.26 $167 99
Surviving Spouse-D $222.20 $91 39
Surviving Family-E $462.75 $190 79
Surviving Child-F $240 56 $117 17
FY2000-2001
City
Contribution
$196 53
$222.20
$598 35
$336 56
$319 91
$776 79
$511.27
$130 81
$271 96
$123 39
5
Retirees Enrolling in the Secure Horizons Plan
FY2000-2001 FY2000-2001FY2000-2001
Monthly Retiree City
Premium Contribution Contribution
Secure Horizons + Low
R+Spouse (NME) $296.22 $73 45 $222.77
R+Spouse (ME in Low) $161 41 $70 56 $90 85
R+Spouse (in Secure Horizons) n/a n/a n/a
R+Child(ren) $151.25 $43 37 $107 88
R+ Family (2 in Secure Horizons) $185 61 $87 73 $97 88
R+ Family (1 in Secure Horizons, one $413 13 $87 73 $325 40
R+Family (1 in Secure Horizons; one $278 32 $87 73 $190 59
Surviving Spouse n/a n/a n/a
Surviving Child(ren) $116 91 $89 37 n/a
Surviving Family (1 in Secure Horizo $151.26 $87 73 $63 53
Secure Horizons + High
R+Spouse (NME) $383 46 $153 48 $229 98
R+Spouse (ME in High) $161 41 $70 56 $90 85
R+Spouse (in Secure Horizons) n/a n/a n/a
R+Child(ren) $177 11 $67 09 $110 02
R+ Family (2 in Secure Horizons) $215 70 $115 34 $100 36
R+ Family (1 in Secure Horizons; one $521 66 $187 30 $334 36
R+Family (1 in Secure Horizons; one $308 40 $115 34 $193 06
Surviving Spouse n/a n/a n/a
Surviving Child(ren) $138 53 $109.20 n/a
Surviving Family (1 in Secure Horizo $172.88 $63.20 $109 68
Secure Horizons + Indemnity
R+Spouse (NME) $610 39 $240 51 $369 88
R+Spouse (ME in Indemnity) $256 55 $155 44 $101 11
R+Spouse (in Secure Horizons) n/a n/a n/a
R+Child(ren) $270 30 $96 84 $173.46
R+ Family (2 in Secure Horizons) $309.26 $121 99 $187.27
R+ Family (1 in Secure Horizons; one $846.34 $283 91 $562.43
R+Family (1 in Secure Horizons; one $492.50 $202.64 $289 86
Surviving Spouse n/a n/a n/a
Surviving Child(ren) n/a n/a n/a
Surviving Family (1 in Secure Horizo $270 30 $96 84 $173 46
Secure Horizons
Retiree Only $34 35 $0 00 $34 35
Retiree and Spouse $68.70 $34 35 $34 35
Surviving Spouse $34 35 $34 35 $0 00
6
City of Fort Worth, Texas
~1-~A~ar end (®,aun~l L,am~u~n~cAtaiatt
DATE REFERENCE NUMBER LOG NAME PAGE
11/7/00 C-18338 15HEALTH 1 of 2
SUBJECT ADOPT SUPPLEMENTAL APPROPRIATION ORDINANCE AND RENEW
CONTRACTS WITH PACIFICARE OF TEXAS, INC AND PACIFICARE LIFE
ASSURANCE COMPANY FOR HEALTH MAINTENANCE ORGANIZATION HEALTH
BENEFITS, PREFERRED PROVIDER ORGANIZATION HEALTH BENEFITS, AND
ADMINISTRATION OF THE CITY'S SELF-FUNDED, INDEMNITY TYPE PLAN AND
RENEW WITH LINCOLN RE-RISK MANAGEMENT SERVICES, INC FOR STOP-LOSS
INSURANCE COVERAGE FOR THE CITY'S SELF-FUNDED MEDICAL BENEFITS
RECOMMENDATION
It is recommended that the City Council
Adopt the attached supplemental appropriation ordinance to the FY2000-2001 budget increasing
estimated receipts by $1,761,090 00 from employee contributions and increasing appropriations in
the Group Health Fund by $1,761,090 00, and
2 Authorize the City Manager to execute the fourth of four consecutive options to renew for one-year
term contracts with PacifiCare of Texas, Inc. and PacifiCare Life Assurance Company for health
maintenance organization (HMO) health benefits, preferred provider organization (PPO) health
benefits, and administration of the City's self-funded, indemnity type plan and with Lincoln Re-Risk
Management Services, Inc. for stop-loss insurance coverage for the City's self-funded medical
benefits for group medical benefits and services for employees and retirees and their eligible
dependents
DISCUSSION
On August 8, 1996 (M&C C-15574), the City Council approved the above-referenced contract for
coverage effective October 1, 1996 and approved the first option to renew on September 16, 1997
(M&C C-16299) The second option to renew was approved on September 1, 1998 (M&C C-16959)
The third option was approved on September 21, 1999 (M&C C-17655)
On July 1, 2000, PacifiCare of Texas, Inc. acquired Harris Methodist Texas Health Plan and PacifiCare
Life Assurance Company acquired Harris Methodist Health Insurance Company, Inc. The fourth and
final renewal option will be executed with PacifiCare of Texas, Inc. and PacifiCare Life Assurance
Company, as successor companies to Harris' interests
The proposed premiums for the fourth renewal period October 1, 2000, to September 30, 2001, are
described on Attachment 1 The recommended premium increase is nine percent (9%) for the HMO
plans and the PPO plans. Estimated claims for the City's self-funded program increase is 12.3 percent
(12 3%) The total annual program cost is estimated to be $29,728,043 00 The City's cost is
approximately $21,488,427 00 Employee and retiree contributions fund the balance of the cost.
City of Fort Worth, Texas
~1-~~e~a~ Anil uun~l amntun~cAt~un
C L.
DATE REFERENCE NUMBER LOG NAME PAGE
11/7/00 C-18338 15HEALTH 2 of 2
SUBJECT ADOPT SUPPLEMENTAL APPROPRIATION ORDINANCE AND RENEW
CONTRACTS WITH PACIFICARE OF TEXAS, INC AND PACIFICARE LIFE
ASSURANCE COMPANY FOR HEALTH MAINTENANCE ORGANIZATION HEALTH
BENEFITS, PREFERRED PROVIDER ORGANIZATION HEALTH BENEFITS, AND
ADMINISTRATION OF THE CITY'S SELF-FUNDED, INDEMNITY TYPE PLAN AND
RENEW WITH LINCOLN RE-RISK MANAGEMENT SERVICES, INC FOR STOP-LOSS
INSURANCE COVERAGE FOR THE CITY'S SELF-FUNDED MEDICAL BENEFITS
The original adopted budget for these benefits for FY2000-2001 assumed a renewal at a seven and
72/100 percent (7 72%) increase with a change in plan design for the HMO benefits Subsequent
discussions led to a decision to renew the current plan design for HMO benefits at a nine percent (9%)
renewal with additional employee contributions making up the difference in cost. This amounts to an
additional $1,761,090 to be financed by employees It is necessary for the City Council to modify the
budget of the Health Insurance Fund by appropriating this additional revenue from employees and
increasing appropriations for premium costs in the Health Insurance Fund
Medical stop-loss insurance on the City's self-funded plans is acquired through Lincoln Re-Risk
Management Services, Inc. The estimated annual premium for single stop-loss of $60,000 00 and
aggregate stop-loss above $1,372,860 00 is $147,795 60 The actual premium is remitted monthly
based on actual enrollment in self-insured plans
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that upon approval of the supplemental appropriation ordinance, funds
will be available in the current operating budget, as appropriated, of the Health Insurance Fund
CB k
Submitted for City Manager's FUND ACCOUNT CENTER AMOUN_ T CITY SECRETARY
Office by• (to)
FE85 488192 0158520 $1,761,090.00
Charles Boswell 8511 FE85 534730 01
8520 APPROVED
5 $1,285,170.00 °~
Originating Department Head:
FE85
534770
0158520
$ 475,920.00 ^!
~~ 1 Y ~ouNl~l~
Susan Bulla 8513 (from) N Q V ~' 200Q
FE85 534740 0158520 $ 45,000.00 ,
Additional Information Contact: FE85 534730 0158520
$10,081,738 00 1
.. 1~i4..U1,
FE85 534770 0158520 $10,660,723.00 City ~r®t~y of t11e
FE85 534730 0158540 $ 5,286,084.00 City ~ Fort S~lorth, Texas
FE85 534740 0158540 $ 1,000,000.00
Susan Bulla 8513 FE85 534770 0158540 $ 2,654,498 00
AdoAted Ordinance No, ~ `~`~D~
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