HomeMy WebLinkAbout10856RESOLUTION NO. 10856
A RESOLUTION ACCEPTING THE PROPOSAL FROM AETNA
FOR HEALTH INSURANCE FOR CALENDAR YEAR 2007
WHEREAS; all City of Pueblo collective bargaining agreements require that the City of
Pueblo accept the Health Insurance proposal which maintains the same level of benefits at the
least cost; and
WHEREAS; AETNA Health Insurance has proposed the same level of benefits for City
Employees for the calendar year 2007 at the least cost in accordance with the Collective
Bargaining Agreements, NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The City of Pueblo does hereby accept the proposal to provide health insurance from Aetna
for calendar year 2007.
SECTION 2
This Resolution shall become effective upon final passage and approval.
BY Randy Thurston
Councilperson
APPROVED:
President of City Council
ATTESTED BY:
CITY CLERK
INTRODUCED November 13, 2006
o
Background Paper for Proposed
RESOLUTION
y � . � 108510
AGENDA ITEM # 19 8
DATE: November 13, 2006
DEPARTMENT: HUMAN RESOURCES — DIRECTOR BETH S. VEGA
TITLE
A RESOLUTION ACCEPTING THE PROPOSAL FROM AETNA FOR HEALTH
INSURANCE FOR CALENDAR YEAR 2007
ISSUE
Should the City of Pueblo accept the proposal from Aetna for health insurance for
2007?
Accept the proposal from Aetna for health insurance coverage for calendar year
2007.
BACKGROUND
AETNA Health Insurance has proposed the same level of benefits for City
Employees for the calendar year 2007 at the least cost in accordance with the
Collective Bargaining Agreements. The Collective Bargaining agreements
specifically provide for this standard. This year there is an 11.3% increase. Last
year there was a 5% decrease, resulting in an actual increase of 6.3 percent over
the two -year period. Representatives from the three bargaining groups have
reviewed and approved this decision. The City will continue to reimburse up to
$150 per insured towards the $250 hospitalization co -pay, the average is 50 co-
pays per year at a cost of $7500.
FINANCIAL IMPACT
The total City contribution toward health insurance will be $5,242,188, which
represents an increase of $534,312 or 11.3% (see attached).
INSCOMPARISON -CITY SHARE CUR VS NE7R YR.AETNA
2007 PROJECTED INSURANCE COST COMPARISON
CITY BUDGET ONLY- EXCLUDING TRANSIT, RETIRED FIRE, & RETIRED POLICE
CITY SUBSIDY IS BASED OFF THE HMO PROPOSED RATE
*PRORATED FOR DUAL EMPLOYED SPOUSES
2007 CITY SHARE INCREASE:
PERCENTAGE DIFFERENCE:
NOTE: ADJUSTMENTS TO GROSS CENSUS TOTAL
PUEBLO
RETD
UHC -2006
TRANSIT
POLICE
AETNA -2007
SINGLE
266
4
26
13
HMO RATE
127
9
21
HMO RATE
EMP +CHLDRN
COVERAGE TYPE
CENSUS
PREMIUM
CITY SHARE GROSS /MON
ANNUALIZED
PREMIUM
CITY SHARE
GROSS/MON
ANNUALIZED
DUAL EMP- FAMILY
6
0
0
0
TOTALS:
723
33
SINGLE
223
438.19
95%
416.28
92,831
1,113,972
488.28
95%
463.87
103,442
1,241,304
EMP +SPOUSE
88
920.20
75%
690.15
60,733
728,796
1,020.51
75%
765.38
67,354
808,248
EMP +CHLDRN
60
832.56
75%
624.42
37,465
449,580
927.73
75%
695.80
41,748
500,976
FAMILY
242
1,073.57
75%
805.18
194,853
2,338,236
1,196.29
75%
897.22
217,127
2,605,524
EMP +EMP +FAMILY *
6
1,073.57
100%
1,073.57
6,441
77,292
1,196.29 100%
1,196.29
7,178
86,136
TOTALS:
619
392,323
4,707,876
436,849
5,242,188
*PRORATED FOR DUAL EMPLOYED SPOUSES
2007 CITY SHARE INCREASE:
PERCENTAGE DIFFERENCE:
NOTE: ADJUSTMENTS TO GROSS CENSUS TOTAL
ADJUSTED
CENSUS TOTAL
223
88
60
242
6
44,526 534,312
11.3493% 11.3493%
PUEBLO
RETD
TRANSIT
POLICE
RET'D FIRE
SINGLE
266
4
26
13
EMP +SPOUSE
127
9
21
9
EMP +CHLDRN
63
3
0
0
FAMILY
261
17
2
0
DUAL EMP- FAMILY
6
0
0
0
TOTALS:
723
33
49
22
ADJUSTED
CENSUS TOTAL
223
88
60
242
6
44,526 534,312
11.3493% 11.3493%