Agenda Packets - 2005/11/14 - Laserfiche WebLink

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Mounds View City Council October 24, 2005 Regular Meeting Page 11 were a healthy bunch. 1 2 MOTION/SECOND: Stigney/Thomas. To waive the reading and adopt Resolution 6654 3 Approving New Health Care Insurance Provider for 2006. 4 5 Mayor Marty stated he thought it was looking good when he first started his review even though 6 he had a few questions. He stated he found it enticing that it would save the City almost $19,000 7 but by the time he got back to Exhibit B, Page 1, it states the City will pay 80% under Health 8 Partners, 85.3% under Blue Cross Blue Shield, and 88.8% under Blue Cross Blue Shield Service 9 Co-op. Finance Director Beer explained that is the City’s share of the family insurance if 10 continued at the current budget. That identifies how much the City’s contribution would cover. 11 12 City Administrator Ulrich stated with current contracts they are negotiable and it would be 13 unusual for the City to go beyond 80% so that savings would come back to the City. 14 15 Mayor Marty referenced the June 24 article about irregularities that were found during an audit. 16 He stated that raised “red flags” for him and while there were arguments on both sides, the issue 17 of where the money was going was being looked at and found it was Recognition Programs for 18 kids (spelling bees). He stated he does not know what spelling bees for kids has to do with 19 health insurance unless it has to do with some form of lobbying. 20 21 Mayor Marty noted the State Auditor looked at public access to information and the investigation 22 found that they would not reveal the terms of the agreement without the written consent of the 23 Blues, which is in violation of the Minnesota Data Practices Act. It also indicates the 24 cooperatives must increase transparency of their operations; these are public dollars and should 25 be subjected to the same scrutiny as other governmental agencies. Mayor Marty stated he is in 26 full agreement with those statements. 27 28 Mayor Marty referenced Page 5, Exhibit D, third and fourth bullet points, indicating: “Several of 29 the reserve accounts maintained to support health insurance costs are under-funded and are not 30 monitored adequately by some of the cooperatives…” “The secrecy to which the cooperatives 31 have agreed in their contract with the Blues is inconsistent with the Minnesota Government Data 32 Practices Act…” 33 34 Mayor Marty stated that it is a $19,000 savings to the City but it seems to start falling apart under 35 investigation by the State Auditor as far as he is concerned. He stated as he reviewed this 36 information he was leaning to the Blue Cross/Blue Shield plan, which was in-between but save 37 some money. Due to the questions raised about the co-ops, he stated he has doubts about that 38 program. 39 40 City Administrator Ulrich stated staff included this research because it was very reflective and, in 41 a number of ways, shines a “bright light” on co-ops and makes them safer because it brought 42 these issues out and they will work to correct them. He stated that will give them confidence 43 moving forward. In addition, Mounds View has a former State auditor on staff who can bring 44 perspective to the audit. 45