HomeMy WebLinkAboutRes 2014-80 - IRS Sec 125 Flexible Benefits PlnCaIPERS Health Insurance Enrollment - Septemember 2014
Plan Name
Blue Shield Access+ Los Angeles Area
1441
1443
Blue Shield Access+ Other Southern California
1421
1422
1423
Blue Shield NetValue Other Southern California
1433
Kaiser Permanente California Other Southern California
3081
3082
3083
PERS Choice Los Angeles Area
3212
PERS Choice Other Southern California
3231
3232
3233
Grand Total
Premium Changes result in an overall Decrease in premiums:
Annualized:
Plan Count 2014 Premium
3
1
2
24
3
3
18
1
1
24
3
5
16
1
1
60
10
16
34
113
$2,913.45
$469.91
$2,443.54
$30,311.19
$1,629.63
$3,259.26
$25,422.30
$1,188.64
$1,188.64
$32,912.27
$1,808.37
$6,027.90
$25,076.00
$1,198.38
$1,198.38
$79,837.40
$6,122.50
$19,592.00
$54,122.90
$148,361.33
2015 Premium
$3,210.79
$517.87
$2,692.92
$33,405.30
$1,795.98
$3,591.96
$28,017.36
$1,262.07
$1,262.07
$31,657.08
$1,739.40
$5,798.00
$24,119.68
$1,170.36
$1,170.36
$77,509.76
$ 5, 944.00
$19,020.80
$52,544.96
$148,215.36
-$145.97
$ (1,751.64)
SCHEDULE B
Flex Dollar Allowance Schedule
Full Time Employees
With Health Insurance Coverage
Employee Only
Employee + 1
Employee + 2 or More
Premium Coverage
Actual premium rate for any CaIPERS health plan —
except PersCare. Employee's selecting PersCare will
receive a premium credit equivalent to the PersChoice
rate for their family size.
Without Health Insurance Coverage
Cash in lieu of premium
Employee Only
Employee + 1
Employee + 2 or More
Dental & Vision
Employee Only
Employee + 1
Employee + 2 or More
$150.00
$150.00
$150.00
Actual Premium
Actual Premium w/dependants
Actual Premium w/ dependants
Flex Dollars
$ 50.00
$50.00
$50.00
Part Time Employees (Work between 20 and 40 hours per week)
With Health Insurance Coverage
Employee Only
Employee + 1
Employee + 2 or more
Without Health Insurance Coverage
Employee Only
Dental & Vision
Employee Only
Employee + 1
Employee + 2 or More
Premium Coverage
50% of current premium paid for employees with
regular full-time status
Cash in lieu of premium
$75.00
50% of actual Premium
50% of actual Premium
50% of actual Premium
Flex Dollars
$25.00
$25.00
$25.00
Council Members (effective January 1, 2013)
With Health Insurance Coverage
Premium Coverage
Individual Only (No Dependents) Actual premium Rate up to 2nd highest cost plan
Without Health Insurance Coverage Cash in Lieu of Premium
Individual Only (No Dependents)
Dental & Vision
Employee Only
Cash benefit equal to the amount of the individual premium
for the 2nd highest cost plan, including dental & vision
premiums.
Actual Premium - individual only
Flex Dollars
$50.00
Amended on 9/25/2014 for an effective date of January 1, 2015
REQUEST:
CITY OF PALM DESERT
OFFICE OF THE CITY MANAGER
STAFF REPORT
Amend the Flexible Spending Plan, Schedule B, to be consistent
with language in the 2014 Memorandum of Understanding with the
Palm Desert Employees Organization.
SUBMITTED BY: Lori Carney, Human Resources Manager
DATE: September 25, 2014
CONTENTS: Revised Schedule B
Schedule of current health plan enrollments
Resolution No. 2014- 80
Recommendation:
Authorize the City Manager to amend "Schedule B" of the City's IRS Section 125
Flexible Benefits Plan (Cafeteria Plan), to be consistent with language in the
2014 Memorandum of Understanding with the Palm Desert Employees
Organization.
Background
The City of Palm Desert provides benefits through an IRS Section 125 Flexible
Spending Plan. The longstanding policy of the City is to provide coverage for
employees and their dependents, at the PersChoice level for PPO, or for a HMO offered
through CaIPERS. In July 2014 the City entered into a new Memorandum of
Understanding (MOU) with the Palm Desert Employees Organization which did not
change this policy.
In reviewing the 2015 CaIPERS plan offerings and related premiums it became
apparent that the language in Schedule B of the Section 125 plan did not adequately
describe the benefit nor was it consistent with the language in the MOU. In order to
provide clarity and consistency staff recommends revising Schedule B with the attached
language.
CaIPERS continues to aggressively manage health care costs, lowering premiums for
the PersChoice PPO plan for 2015. Although there are some increases to HMO plans,
Resolution No. 2014-80
Flexible Spending Plan Revise Schedule B January 1, 2015 — Staff Report
Date: September 25, 2015
Page 2 of 2
such as Blue Shield and Anthem, the overall impact to the City's costs are negligible
because more than half of our employees choose a PPO. Some of the new HMO plans
have higher premiums than those currently selected by employees; however it appears
unlikely that any current staff will elect one of these more expensive HMO's as they
provide the same benefits and doctor networks in the Coachella Valley.
Staff anticipates that there will be a reduction in overall premium payments of
approximately $1,800 for 2015. Of course this number fluctuates with changes in family
sizes and plan choices; however based on historical changes the impact should be
immaterial.
Fiscal Analysis
No direct fiscal impact is anticipated by this change. Overall changes in premium
expenses are anticipated to be reduced for 2015 by $1,800, and funds are available in
department budgets.
Submitted By:
CITY COUNCIL ACTION
APPROVED Dedi+,..W
RECEIVED OTHER /doh
MEETING DA -;S" WA/
AYES:/'f,7�1k, /� .�,r, ia��i�er
NOES m
Lori Carney, Human Resources Manager ABSENT: Pi
Approval:
Paul Gibson, Director of Finance
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John M. Wohlmuth, City Manager
ABSTAIN:
VERIFIED BY: _1 //C-
Original on File with City ork's Office
RESOLUTION NO. 2014- 80
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, RESTATING THE CITY OF PALM DESERT
IRS SECTION 125 FLEXIBLE BENEFITS PLAN;
WHEREAS, Section 125 of the Internal Revenue Code allows employees to
choose among two or more appropriate levels of health benefits for themselves and
their families; and
WHEREAS, the City of Palm Desert first adopted its flexible benefits plan in
1999; and
WHEREAS, the Flexible Benefits Plan is not considered discriminatory to
collective bargaining units; and
WHEREAS, over the years the plan has been amended to reflect changes in
Federal law and the City's benefits structure; and
WHEREAS, it is beneficial to amend Schedule B to be consistent with current
bargaining unit agreements for ease of recordkeeping;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Palm
Desert, California, adopt the attached City of Palm Desert IRS Section 125 Cafeteria
Plan, Schedule B; and
PASSED, APPROVED AND ADOPTED at the regular meeting of the Palm
Desert City Council, held on this 25th day of September, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
VAN TANNER, MAYOR
ATTEST:
RACHELLE KLASSEN, CITY CLERK
City of Palm Desert, California