HomeMy WebLinkAbout1992-04-13 92-220 ORDERDate Item No. 92-220
Item/Subject: Juthoulziag tba lidinn of Devi ➢vanre Rerfmd Bettlmart
mccexle to Cm+.:., FarYtciPatin9 (ivupe.
Responsible Department: EuMepytivis
Commentary:
11ne City reseetv1Y rocaivetl a tefwrl setcleoast iron. Blue Ctv�e-BLre
Shield for tba }ass mdiag Sure 30, 1991 re tba result of poeltbes claims
expa iarlce. Sncludlei N tba City account are the following ginupss City of
Bangor ouplcyma, Ban9cr' Public Ubsaty, Bei wuailej Au Lty asri City of
Bangor' Retirees.
After discvsaisg flue mfuM issre witty the Finance Covmtthee on April 6,
1992, flee Candi voted m tm®eid tba following actions (1) that MfuMe
ba neie fo the tluee pu2fcfpat4g 9rosYH aas ladicated on the attacbad
Ccvri Oader, and (2) abet the 6iessa Ae to tie City of Banpr be bald unL11
the City receives ffis lassi inaureavre ram for tie 1992-93 year. Marge
rates sdp u d be avat]aDle Airing the early past of April. At that tioa a
decisivr will be Made xegasding tie disposition of the navainimi refund
mwmt.
Fba>?uer, in the meantime, both City 6Yatf std the Fiaaar,p mire; ee fedif
TJet it was apptcq¢iate w rewrn mfmds to etc otAer perticipatiag 9srv@s.
p[pn, „vnn
Marmger i Comments: -
LiryAf+neyer
pooeimtetl Information:
CLdBR, Affi+B&AL�M
Budget Approval
F�iuv�e(c, ni uctor
Legal Approval (Je'sC
CirySalin,v,
Introduced For -
passage
❑ First Reading paw — of —
❑Referral
92-220
Aeeipedm Cowedor Stone April 13, 1992
CITY OF BANGOR
(TITLE) (DrUr, ............. of. Molth 1n mp e r fwtl,,,,,
secue�n. I� to Cerro;., m.+;^ipsr' � (iwFs.
BY the city Ivnl Of As atY OfBaw -
ORDERED,
TUT
1 Finazse Dixecfur ie hexaby autWrf and
directed to xetvrn IIm1N Ireurana tffifund Setueosnt 1 viceetle h tM1e
m rwt yeas ending Jm 30, 1991 tn the following gtoi@s in tM mamts
listed:
Bangs Public Lllxr y $ 4,83'1
Bangs Housing Authority 5,440
City of Ra Metixees 27,646
it\3S'�f..'iin'J
OBOEBF9, TTat the dietributton of pmceeds to the City of Bnpr
ietixets wi11 be hantllsl f ugh Blue Cncae-Blue Shield of Macre m a part of
Uw:. mvKhly billing Pm s.
In City Council April 13.1992
Passed
t/Mw V
L1 Cle[k
92-220
DR DER
Title,
Authorizing the return of health insurance
refend.settlemeet PcoceeLe .to certain
Participating groups
.................................. ",to
......
aFA -
�l.V?!:1......... D
Co.unci.lman"
92-220 s�I aQftp2
To: PdFmxd A. Barvatt, Cfty Manager
Fr: B nett W. Farrar, unector of P[hnlltistiati0a
Fe: P Ulft Refund - Blue Cross -Blue Shield Hbal h DuAlvaae
M: April 1, 1992
As you are aware, t a City recently xaoeii a cM1eck in the amunt of
$168,493 from Blue Roes -Blue Shield of Favre.Mis ci Jc repmsmts tM1e
xefinM settlasmnt
for the year beginning July 1, 1990 and ending Jae 30,
1991 for the City of Bangor accomt Which Includes several fndfvidal groups:
City of Bangor eiployses, City of Bangor Fethreee, Bangor Public Library
anpla}eas and Bangor Housf Authrsity enployeas. T xefund reflate
positive chains a gear a in the traditimial health Plan only, not tie ief)
option. mtacM Please find the xebud calculation as Prepared and Presm+tai
by 81ue Cress -Blue Shield.
Based upon an analysis of tie noise of eiployaes in each of the ahove
mentioned groups, Blue CrossMue Ca+ald has provi the City with a
tai tied allocation of tha settlerent iu each p articip ting group. 1te
� follws:
City Of Bangor
$130,570
Bangor Publuc r. braxy
4,837
Bangor Housing Authority
5,440
City of Bangor Ihetiraas
27.64
Total
'$168,493
ra an effort to properly crel t tie City of Bangor, ottier participating
groups and emloyers in cle current Fiscal Year, I would suggest tha
folloring approach:
1. A refund of $4,837 to the Bangor Pubbic Library;
2. A ref a of $5,440 to the Bangor Housing Authority;
3. A clerk payable to Blue Cross -Blue Shield for $27,646 to be credited
to City of Bangor morass. Betivaes are mal directly fr® BLe
Cross -Blue Shield and the C+npany has Ldicatai a wullirqoass to
craiit tress accounts spprc ately.
4. To split the arrunt received by the City tetwem+ the aty and its
aroloyee , each of w cvMrfb+i to the prealm costs.
Atichnd is a sumoary of mthed by which: we woold propose to raa nd the
mplo}ee's share, sap�y $29,831. essentially, we ze:mn®d that all
effpl� pre n y part ciPating in tha ♦radio health fnsurane program
receive a same+ (7) week xeiver frou health 3nsuraae wl Idings. By our
calculations, this will distribute back to eiployees their share of its
refund. 9e retairsd City share would be allocatedto the Qaarai Fled ani
venins Bnterprise FW da.
please be aMisai that this proposal may not be seen as completely fair to
all coeevad parties. For ample, egoley'-- that may have left a Acynom+t,
changed ewesages or droplad health insurance may not eceive benefit of the
sxnnam Jc wit ldirg vetoer. ivmver, after careful revue✓, we have
dares+�+ that it Would taloa significant thue and raworoee to beck track
and copute the anoint omnd each irdivfdal eaployee rde may have
92-220
participated in the program during that ysar. we do not bava Na staff nor
is the infometion oaq a ized in a fonn that would alhw us to and teba a
re-cxa tiara of Nis with all Ne vartablee involved (policy
co a ge dates, type of �, chamges in mvacage, cafeT is plan
particihent, etc).
We further recrosend that the ineurama Pr um wiWoldvg period begin with
the first pry period in Nay and ertaid through the third pay period in Tune,
totaling semen vela. Ibis mould accmplish our bjeruve of refacing
t be
n dne hefore Ne 10 of the fiscal Yost. Blue (kcss/else Shield zee
W ]e ratified tri' eue. 10th as they begin the billing process for Ne
zetireae w Nat date.
This pr gceah rncmnietWfltion should prtlably raceive approval of Ne Fina oa
C'omdttea and, give, the tine constraints notal above, I would ask Nat it be
included mon the April 6, 1992 Finance Committee agenda.
mar/idr
IDsloearn
City of Bangor
3C/n Ref=1 MI
AOMI 1, 1992
Amount
% Total
Ref
Fefund raceiv frOP BC/RS 8168,493.00
lass O Other Units:
Bangor Phllc Library (4,837,00)
2.87%
Bangor Yoysi[g AULwrity (5,440.00)
3.23%
pSRS Retirees (27,646.00)
16.41%
Wrotnt U City 130,570.00
Amwnt Due Egloyees (29,830.65)
17.70%
Amount Pae City/ilnoloyer 100 739.35
59.79%
00.
W%
RstiMated Weekly witlinoldinccs
4,417
Estimated Actual wee: Nay-witl ldiys
6.75
ROVw`ed Nunber Weak. Iron-witMoldirgs
7
=stimated wit' m:dines Pore
30,919.00
lass Doe 'Z nloyres
(29,830.65)
Estimated xCess Coat to CITU
_
11088.35
92-220
% Net Per BC/BS
.Refold
Payment to
P�t to
Reoo- BL/Es
22.85%
77.15%
100.0