HomeMy WebLinkAbout1992-09-14 92-429 ORDERWmcn Action
Date 9-14-92 Item No. 92-429
�bignatton of Grog Hmlth Lieiserre Plan for
Item/Subject: Pe[ixess QeS Age 65
Responsible Department Exactrusne
Commentary:
Tisis pest Jure, the Cit' changed the (trip HeeLds wserce Cov¢aga for r rsesa
over age 65 to Cagasuwt. Plan I fres Cmpanion Plan 1 and [9jor Medical. Tbis
satione was at the dira21e3 of Bltre Cmee-Blue Shield of Msve arca uses Wood sgnn
their interprafatiet of recant Petl®1 IegislaTim. 11e reeult of this change
stent higber prmdum for ret ees, lwaxed bare£it levels and an approolmodi
$13,000 savings to the City of Bangor Account al; the Losses experierce of this crisp
waa sefarated fry the otbec employee group.
rnnr:mI mtc^ena raised by retirees £erred a :evfe„ of Ute Coapv3ys
interpmtatton and Blit Cross-131ue Shield determined that tle cMnger
dfd rat have m occur. mhe Coppery bee a axeesed a willvgnas6 to raters retirees
to the focvar Cali Plan 1 if the City iso electe. Deli Sai W no addLtional
coat to the City this year for the converaim, vdsidh acerfef W mtkwct w to July
Last.
The va. Ipsssl Operations camdttce arid eeverel setixas sabo attended the vatting
supported the cbsuni back W Ccasp Sion P1mr 1. 9c Camdtt iaanpercbi approval
to ilia COlmCa.
Manager's Comments:
, tXIP.
City Mmuy<•
Associated In{orrtwtion:
.Order, CosxPspvdmre, earned Order' 92-279
Budget Approval:
Fiw <e 0irc
Legal Approval:
cirysar,<im.
Introduced For
Ez Passage
El First Reading Page_ of
❑ Referral
92-429
Asmled to Councilor Sa,1, September 14, 1992
CITY OF BANGOR
(TITLE.) V drffo _----Peu�c of the .Gtw. th 1n emco. P1,,.. for __..
E:�
By @e Coy council of the City ofBanyar
ORDERED,
TEAT
C it Crder 92-279 tl ignating Companion Plat I as
the Qt Health I uraex a Plan for xetivaes wer age 65 is hereby
rescinled; aM
IN CITY COUNCIL
Sepce ¢ IL 1992
Pas d
44 t cLeRK
92-429
O RUIR
Title,
Redesignation of the Ceoup Health
ideurence Yfoi'for. 1(efireW tWr
Age 65
......................................
OL
Asagna to
......V .........unci.....
Coweflrtan
92-429
1bi M if i hvwarime cfmittB
Frw: Ibbert W. Farrar, Dlzwtor of A&Unfe tion.
�i update -F tires tbalu Insurmre cwarage
Data: August 28, 1992
The City zxwtiy s a letter to glue Cress -glue Shield of FOi.re pnii g
tte dwisim mads in Jme tocmwart xet es ias1M ff n
cklq LL Plan 1 with Major h1ca1 to cmpv Plan I. In that letter, tto
city mntests that the cmrva:sion did rot have to ta1o3 place (letter
attached). -
yeferday, the City recap i a zsapmae back fzm the five C s -flue Shield
outlining their plma to zanily the sit a (orgy attach). rife Ily,
they have agred to Our regueata m Outlined fn Our lett m follow:
1. ➢my will �to tle f Caput P1mi 1 cowsage.
.2. Petirees will be able to ocnvmt beck to tide plan if they are in
other gl:e Corse-BLe ghi ]tl plaw or if they emitcMd Lo otMt
xmo-flue Cana -flue Shield plain.
3. ata increase in prmi= will be mUdael.
4. Rhine will ba w cost ircraase in the active (curxet mplO )
rates.
ft2 emPu3son pupcees, mtlired below eze Ue varinm hsa1N ite�sarca
ratan for retirees.
girele 2-�
ccffpim Plan d mi Major Medical
(ef£ect£� July 1991Ju 1992) 70.53 156.35
empnion Plan I 10.92 231.84
(effective Suly 1992Jw 1993)
caq� Plan Ore mi mji yedical 76.04 166.59
(t0 take place Of Cm{ m: Plan I a )
19e retizee health i:aurume cave tge ami be clmiged back to tim old
Ccntmim Plan 1 with mtly a slight frzcease in ccet, if the city w elwts.
Acmdingly, givan the wiceme reisai by retires, Cgmicilms and staff
abort the high preuiwn wet of the Cmg dm Plan I and the lawrai b fit
levels, us ink W the M 1pal fpsratfom C tt remmmal to tie full
Comcil that Coach Imier 92-279 he reuiAled and that Corq d Plan Ore
with Major Helical ba designer i m the health insurmre plan for retirees.
Sr £f mid repMxivas f fbe Cmas-glen Shield will be preens svmday
w fully discuss this issue with Uta Ctmmittea. If th are any guetiom
in tie memRbna, plm m rot he to to confect tin.
I&ff/jot
ffielosirzes
• gT��Y770F "+
MAINE
72 MARMWVIT=
EXECUTIVE DEPARTMENT rte 2mreas.wy
Robrt W. Fame Dir¢ of Adminiuradon
August 18, ]992
M. Igvid Putnam
Blue. Cmss-Elva Shield
Sensor Sales mnaultant. Major msvnts
2 Gannett Dove
SOata P and, W 04106
Re: City of Ban o Ret+
Dear Dave:
As you axe aware, ef£ative July 1. 1992, the City of Ba through its City
Council made a decision to i fen its rotirees and retlrnea of
and wm.a£ng Authority fms Ca Psai0a Plan 1 With Mue Alliance Major it I$cal
overage to r� Plaa I Medicare St lemntal mera9e. 4Lis souse of
action was at t dfrectim and isisteaas of Blue �Mae Shield
Of Maine, mhis was the apparent result of the CooptW,s interpretation of
t� legislation e ring a certain ••sta:dazdivaGion• of
suwlThe dscisiou by the City C u this past ,Tune was esto oaty difficult. It
Plersd the crn u in an ao art) PZ tion of having to cimse as, several
options which ware either hfgtsr m price (with srme,Tat similar or rsLoad
coverage l S) or laxer in Price (with siyn<a�y xsLac i coverage levels)
all Of which w.axe at Ua dlxect expase of Us xetirers. TM hnrmi l agmizal
for several vel®, both at the C ttes level arc) at the foosal Camcil lem1,
tefore finally xsaching a dr isxon to elect C� Plan I as the conyersimi
qutiea. It is safe to say that the C 11 was distuthai and Brine 1y
� abOut the aaXCt that their decision would have on the retiree gxmp.
It has now cure to our atimtion tlawgh xeviealaga f the
B
State xeau of ➢isurace that the City, in fact, did rot love to oomert to
the new co fon Plan I.Option. 1•he City's +nR+� is that Blue
Cross -Blue Shield assume] that this conversion was necessary and, sccozdingly,
infooved £ts grm Policy holders of Ude n9ed to crmvext to one Of the vaz£ous
CPtimis that rat the sta.,ne.w� reqnfxeomts. Bunn, we have also been
led to believe that the City mold love xetav i Ula CagaandOa Plan 1 Coverage
that was �ously in Place.
Clearly, the City was not pleased with Ude fact that d Sims had to be roost
that caused distvass to the retiree poop. we mw find out after tffi fact that
the mttDo maNXaCS n Process was aplaraRly not ne_vasary. As } can
appreciate, Uds decision and its r ting xTpact eonwm.ee to oieata g t
c�stemation aireng Ude retire s and City officials.
August 17, 1992 '
Page Y
Based upon oa ] Iedge of t topic m dais, it apPmxs that:
(1) '4¢e ween appsxmuy �/dixassions at ffi Cress -n Shteld
£e^'
cPuuona xegaxdin inte=
rP 'von of this Wnle issm.
(2) Hlue Ccoss-Mm Shield cortun assumVt ne and/or Wrpomm
Policy d io cm=emi l the iatexpcetation of F eral/Stem
legislation that was iervssect.
(3) ' Cvt3rty ditl rot bsccma fully mare of these df£f¢ie
. ,tions until retfas-s bs m qusstmu the daiaian sed
requestal assieWre and infnmstiori fees tre Human of h:sucance.
(9) Blue Cross -Blue Shield des appazn y aeoersed its positim aM is
m lager xequirtng :group, m �fer t i. pl . 9 City was
rot v:fornsi of this ch � in position.
6t en the cuaent aimatinn, t City to that phis Q S -Blue mai 1d
reg Sts <.,.o..rs.x+..., that led m the City converting health
ins sere fax Cmpunipn Plan I option. If, m fa R, a
convazsi� did tot n=sd m a vr, the
city xeguesm all apps pin
�ti.nnWe� relative m the tolloeing:
(1) Ps-esmblishie the £Darer Cmpuaixm Plena 1 mverage plan std the
cost �licatfmm fox loth tde active sad ret3xse groins.
(2) Allowing zetira-s wln my have dccppg coverage a togettwr ox
ooermated fx® Cm¢vni.on Plena I m a di£fetmt plan m mtum m
Coq afrn Plan 1.
(3) Revfedngany afhex alf�att s that may Bust to xmsiy this
situavon.
with the retirees c mt+.0g m pay the sigdffcantiy highsr monthly _
pxeaiwrt, xa feel that it ss iapnt nt for Blue Czcea-Blue 9aield m give
this metier high Priority. At y aarUwt possible , please
inview this ieafometira. sed respmri m Use quesuous raised.
Sirremly lou(r%s,,
09
tobert-W. Farr
Di1ECtpx of Pdmudsrration
a Prya
oc: Bawe:a mwa t, aemRc
Hrih Bhmpml, CityTy llSWfcitm
Sally Thesla,onr ILsen Resaucas TM___gex
i y o£ B�aurarca
Roy Damelly
M. Blsie Caffey, Bangor Prnesfng AatirriTy
IAS. 8arbaxa Rica, Eaegox Public Ltl¢atS'
BlueCross BlueShield
of Maine
2 Hannan Dn e
South Faille", Maine 041068911
August 27, 1992
Mr. Robert W. Farrar
Director of Administration
City of Bangor
73 Harlow Street
Bangor ME 04401
Dear Bob,
I have received your letter of August 18, 1992 outlining your.
concerns with the Blue Cross, Blue Shield and Blue Alliance
Mutual Insurance Company (BAMICO) coverage provided to retirees
Of the City Of Bangor.
I hope that the following information will be beneficial to you
in our collaborative effort to resolve the outstanding concerns.
1. Blue Cross, Blue Shield and BAMICO will allow the City of
Bangor retirees to return to the level of coverage that was
in affect through June 30, 1992. We refer to this level of
coverage as group -billed Companion Plan 1 (One) with the
Blue Alliance major medical coverage as a supplement to the
Companion Plan 1 (One) benefits.
2. Blue Crass, Blue Shield and BAMICO will provide this level
of coverage with the same rate for the SAMICO major medical
benefits as is currently charged to your under -age -65
population. The monthly premium rates for BAMICO major
medical in effect for the period July 1, 1992 through June
30, 1993 are listed below:
Individual $24.01
Family $62.53
Adult with Child(ren) $42.53
Sponsored Dependent $16.82
Mr. Robert W. Farrar
August 27, 1992
Page 2
3. Blue Cross, Blue Shield and BAMICO will allow the change to
group -billed Companion Plan 1 (One) with BAMICO major
medical either on July 1, 1992 or October 1, 1992. We need
to discuss the advantages and disadvantages to each of the
proposed dates before a final decision is reached.
4. Blue Cross, Blue Shield and BAMICO will allow those City of
Bangor retirees who have chosen to purchase their health
benefits from a commercial insurance carrier to re -enroll in
the Blue Cross, Blue Shield and BAMICO Companion Plan 1
(One) with BAMICO major medical on one future effective date
(we can discuss the appropriateness of either October 1,
1992 or November 1, 1992 with you).
5. The monthly premium rates for companion Plan 1 (One) for the
period July 1, 1992 through June 3D, 1993 are.
Single retiree $ 52.03
Retiree plus over -age -65 spouse $104.06
These rates are added to the BAMICO major medical rates
listed on page i of this letter.
On behalf of Blue Cross and Blue Shield of Maine and the Blue
Alliance Mutual Insurance Company, I offer our apology for the
confusion which we have caused regarding coverage available to
City of Bangor retirees.
We look forward to working with you in our joint effort to
resolve the confusion and the concerns voiced by your retiree.
population.
Cordially,
David F. Putnam
Senior Sales consultant
Major Accounts
cc: Ken Giaquinto, Blue Cross and Blue Shield
Don Raymond, Blue Cross and Blue Shield