HomeMy WebLinkAbout1992-05-11 92-256 ORDERDate W5-11-92Item No. 92-256
oR®t, Dispcnitiar of Dentition Real Lieuratee Aaaitmi
Item/Subject: Refund Avc i- ;
Responsible Department: Executive
ee tlenvit� check fvw Blue Cross/Blue Shield of Plainer xalaNUe] the } r earvfinl
Sure 30, 1991. 91se Co reil, ops xuraoeMation of the Finer oe Cooperatives, has
approve9 refutd cornus m odor groups do the Bargor acx o t (Fbusirg Authority,
Bangor Public Library, Bangor Retirees) Brad liens mnfluse Inde bcen rewrnffi.
The issue of dispositioa of the amLring $130,570 less discussed with tips Firane
tpmdttee on May 4, 1992. 'IDe City has peeer vaefved the health insurance rareace
for 1992-93 and the avers increase is 3.058. Our rough eatdnaes fa that thin
intrastate will cost $41,600 (Gaisa l Burd $29,100; mtac iae pounder $12,500).
Further, las[ years' increase of 98 cost approximately $129,300 ($80,300 fknerel
Burd; $37,000 Enterprise Foods). Please recall ins for each of the Feet toxo
}pars, the City Nae ahsoded tips full inctanae said tin egFlcyee's share hes
r®eir i mr�ewtt. 'iw options available at this titre star (1) For Ute City to
retain this refused boast upon the prardse that Ups City bear pcevirvaly ateodrad
the past incteeses; std (2) For the City to distribate a Feedlots of Ups rebounds
W City employees.
Tne initial staff recrnaosdatiaa wee to diatribtte a portiors of the refund (April
1, 1992 sero) let fvrtter anelysis of the increases advertised by the City as sell
the language complained in tic City's collective bargainitt3 agreements %v leads
to a xaammlatiat for the City to certain the pressures refurd. 'lbs Finance
Comatose voted to forward this itaa to the full Cmmcil
n"Y
meager:Comments: evQ
tbF'* •ux,mnr.,�,..FtB.,.. a (1poa -
6ily Mnnage,
Associated Information:
Order, Memorandtuu (April 1, 1992) Cost Allocation Spreadsheet
Budget Approval:
Finance DimcfIr
Legal Approval:
cal actual, elf
t�_�r9duced For
�J passage
n Fist Reading Pop _ of—
❑Referral
Y 92-25fi
A' o to CwBr&B 11,1992
_ CITY OF BANGOR
(TITLE.) OCDPY,-----_-_-....... .Directing sne-Dia ltion. of. Certain.B th_lnauaae
By City Cw of W MY ofBsayor:
ORDERED,
TWT
W0Q'TS•
The City of Banpt Las fully livtlExl tto imvmee in lrzmiivoe
rapardut9 Blue (1 /Blue. Shield ] th inserarcc ct a for
Ute past two years: and
M{rBFAS, '14a City a Bang¢ Lae r l a � refurci of Malh�MxcA
Thirty 99aueand, Five where ($130,570) for
meas pry for the year endiv Sure 30, 1991; ab
IVJ]• TIIESIIOi�, BS If TBS CITY @' 1L1M91Q•
THAT: tla Pinarce Di slot ie hwehy diiected W report as
revenue to the FSsual Year 1992 budget the full $130,570 to be
aPpaTionaC by Ue Fv ( al mtl OCM1�
Elude in pxaportiw to tt 1r ] th itauxsrce acts.
In City Council May 11,1992
Amend as Fallows City to receive
80 1 of refunds employees to
receive 20% motion to amend failed
vote 2 yea ] No voting
voting Yes Baldaccl.5awyer
voting No Blanebatte.Bragg,Cohen.
Prankel.5ax1.5oucy.9tone
City Clerk
92-256
ORDER
Title,
Directing the Disposition of certain
.....................................
Health insurance Premium Proceeds
..............................4.46.4..
i It
L`•��b`(/,/pq 4444
•����• U ✓(/ QounCilpl3n
92-220 5 �I OM1�`p2
92-256
1b: Edaazd A. Barrett, any Brager
h: P+dwit W. FdrXur, Director of mi�=drim
Re: pradan pefisd - glue Cross -Blue Shield Health Lrsur ice
M: Avra 11 1992 .
Pe you are a t tyre City recently zsaivdd a check in the mmaut of
$168,493 ftm glue Cxoss-Blua Shield of btima*1'iA C eud ending ev' the0
refund settlement for the year beginWng july
1991 for the City of Bn.3or sccomut wduich Ytoludas aev ioUci�� lsu
pudliCity of Bane r ®ploYEas. City of Ban3oc Fatim s, Bangor
employe and Bangor i ltg PA tl riry ePloyees. T+uis xeflrd reflects
.positive Claims exdaxierca in the traditional health Plan only, not the M
option. Attar a Please find the refund Calculation as Prepared and press u d
by Blue Cross -Blue Shield.
Base, upon an atuelysia of tie duuter of ai;loy rs in each of the BbOVe
r tiored groups, Blue crosslB ue Shield hoe p idoi the City with a
detailed all cation of the settlemnt to each particilating gnu - 74re
bxeakdx+n folloes:
City of Bangor $130,570
m ogor public litrary 4,837
Banger Housing Authority 5,440
City of Bangor Betirees 27,646
.Total $168,493
in an effort to properly credit. the City of Bnmpr, otl s Participating
groups and a ploy s in the current Fiscal Year, 1 weld suggest the
follading approach:
1. A mfurd of $4,837 to the Ba Public UbourYi
2. A refU d of $5,440 to the 2e Hoaaiol Authority;
3. A crack Payable to Blue Cross -Blue Shidld for $27,646 to be credited
to City of B npr retirees. nstirvPs axe billed dixecclY frau Blue
Cross -Blue Shield and rte CauPany hes i:ddcated a willingness to
Credit ttose its appropriately. _
4. �JoyaaSPlitst each oftreceived by the r � iiluts to rtyla I�aiu m costs and mss
Attached 3s a suamarY of ceded by which we would Pappose to mfuod tde
agloY ,s sham, appou m t ly $29,831. EsseMiallY, ' rsco� that Bll
employees Presently participating in the txaditiwul health i vrauco Program
mcedva a seven (7) seek wai"er firm health 5nsumree withholdings. BY ger
calculations, Lids will dietribute back to employs tteir sprue of the
M
refu. '&a mtainad City sham would be allocated to the General Food azd
various B tarps sa Fads. -
please be advised that this Proposal may not be Seen as completely fair to
all condemned Patties. For eones P1e, BVlayethat may Nava left employment,
changed oo,es or drawl health ururode m not receivebenefit of rho
seen-udek withholding waiver. ib ever, after careful review, we here
de' .._, that it weld tale sfgndficant tine and mswxc B to beck track
and to ord the seem aaad each individual ePloYde who nay have
92-256
92-220
pv.?iciPsted in tta prog m fusing that Year. NO dO not have Uie staff ror
is Uie ilifornation Omputeciml in a form riot weld allow us on uMerc a
xc cta3tion of Ws infconation viN all the variables imolvai (policy
coverage dates, type of cc a ge, chan0es in COMenge, cafeteria plan
Participant, etc). _
Wa tvxtiNr re� that the insusa,ee prmdom wiU lding period begin with
ate fiat pry period in May and eOuaxi through the N pay period u June,
totaliog seven wevJc. This x d acnamplish our objective Of refimding
amounts die before the end of � fiscal yeas. am CrosSmneu Shield xis
m be tntifiai by April 10th as they begin the billing proCecs for the
retires on that date.
Tris proposed rsmmeniatim should pObably rive approval of the Piname
Cmnfttee e , gi eO the tine conets.;.,.< rated obova, I wzuld ask that it b=_
includes on the April 6, 1992 Pinarce Crmrittea agenda.
w /jdr
bnclosore
City of Humor
3C/25 S. Azd mi
Ann] 1, 1992
Gari^.t Due city,!Hmpioyen 1000,229.35
sEMi
t_^etc? ES;cess cost to ciTy
92-256
92-220
% Tota! % Net -at ' /35
5efve� nefiM
2.67% Rumen to
3.23% ?ait t to
16.4i% i.f ti 3C:oz
A�ya.T
t j
received f: an 3C/35
:166,493.00
less 2500 Oth, r Units:
cen5ce
hhlic LibeN
(4,632.90
3d:_o:
�o-usim P.ti.:l0[ity
(5,440.M'
NS.L Retk. ses
A:ts=
a..e
(23,630.1_31
Gari^.t Due city,!Hmpioyen 1000,229.35
sEMi
t_^etc? ES;cess cost to ciTy
92-256
92-220
% Tota! % Net -at ' /35
5efve� nefiM
2.67% Rumen to
3.23% ?ait t to
16.4i% i.f ti 3C:oz