Agenda Packets - 1995/03/06 - Laserfiche WebLink

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PEIP was the only provider that would allow the City to enter their group that had competitive rates (Attachment A) and similar coverage (Attachment B). The result of this process has been several meetings and a regular exchange of information with PEIP to determine the feasibility of changing providers. An in-depth comparison and analysis was conducted to determine differences and similarities in coverage. A copy of this comparison of LOGIS benefits and PEIP benefits has been included for your review (Attachment B). In short, it appears there could be some fairly significant cost savings, but also some decrease in coverage. LOGISTICS There are some administrative areas that would also need to be addressed. • PEIP is requiring a two year contract. The City currently enters a contract with LOGIS each year. • LOGIS currently offers three health plans. Group Health, MEDICA and MedCenters. PEIP offers four health plans. Health Partners (Group Health combined with MedCenters), MEDICA, Fortis and Blue Plus. There are some employees who are currently enrolled with MedCenters who may be required to change physicians. This information is being checked. • The City would not be allowed to re-enter the LOGIS group if the decision was made to change providers. • 75% of the City's insurance eligible must participate. Those employees who waive coverage due to being covered elsewhere are not included in the 75% participation requirement. • Employees with single coverage may not be interested in changing groups because there is no real benefit to them. Single coverage premiums are paid for entirely by the City, and changing plans to a more user fee based plan would mean more out of pocket expenses for them. For those employees with family coverage, the amount they would save on premiums (the City covers a portion of their cost) would most likely be more than the amount paid in co- pays. • Those employees who have family health coverage and wanted dental coverage would now be required to take family dental coverage. Currently this is not the case. • The program strongly encourages participating employers to pay a flat dollar amount equal to at least 50% and no more than 100% of employee premiums charged by the lowest cost plan available. • The co-payment option. • There are some areas of both the medical and dental plans that do not have as good of coverage. These differences are included in the comparison that is attached. (Attachment B). • There may be possible union contract language conflicts because some of the benefits are decreasing. This needs to be looked into further.