Minutes - 2005/10/24 - Laserfiche WebLink

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