HomeMy WebLinkAboutAmnd Flex Spending Plan - Blue Shield HMO PlanCITY OF PALM DESERT
OFFICE OF THE CITY MANAGER
STAFF REPORT
REQUEST: Amend the Flexible Spending Plan to cover employee health
insurance premiums up to the Blue Shield HMO plan.
SUBMITTED BY: Lori Carney, Human Resources Manager
DATE: November 18, 2010
Recommendation:
Authorize the City Manager to amend "Schedule B" of the City's IRS Section 125
Flexible Benefits Plan (Cafeteria Plan), providing premium conversion up to the
Blue Shield HMO Rate for 2011 and excluding PersCare for 2011 and future
years.
Background
In order to continue the practice of the City paying health care premiums for the HMO
plans the City needs to adopt a new "Schedule B" to the Cafeteria Plan (attached).
At its meeting of October 14, 2010, the Council directed the City Manager to proceed
with amendment to the Cafeteria Plan to allow for the payment of HMO premiums.
Blue Shield Premium Increase 2011 — Staff Report
Date: November 18, 2010
Page 2 of 2
Fiscal Analysis
If authorized, the total cost for this change is not to exceed $38,400, which has been
offset by staff reductions. No change to the FY 2010/2011 budget is necessary.
Submitted By:
Lori Carney, Human Resources Manager
Approval:
Paul Gibson, Director of Finance
John M. Wohlmuth, City Manager
CITY COUNCIL ACTION
APPROVED V' .I)ENIEI)
RECEIVED OTHER
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Original on File with City ClerkOftice
SCHEDULE B
Flex Dollar Allowance Schedule
With Health Insurance Coverage
Employee Only
Employee + 1
Employee + 2 or More
Without Health Insurance Coverage
Employee Only
Employee + 1
Employee + 2 or More
Premium Coverage
Actual premium rate up to 2nd highest cost plan
Actual premium rate up to 2nd highest cost plan
Actual premium rate up to 2nd highest cost plan
Cash in lieu of premium
$150.00
$150.00
$150.00
Dental & Vision Flex Dollars
Employee Only Actual Premium $50.00
Actual Premium Including
Employee + 1 dependants $50.00
Actual Premium Including
Employee + 2 or More dependants $50.00
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