Agenda - Council - 11/10/1987 - Laserfiche WebLink

Home

CITY OF RAMSEY MEMORANDUM TO: FROM: DATE: RE: Mayor and City Council, and all regular/fulltime employees Noel J. Graczyk, Finance Officer November 10, 1987 1988 Group Health and Life Insurance The City of Ramsey purchases health and life insurance for regular/fulltime employees (effective January first each year) in accordance with Hennepin County's insurance contracts. There has been alot of press coverage recently concerning Hennepin County's decision to discontinue Physicians Health Plan (PHP) and Med Centers as the agents for preferred provider (PP0) coverage. The County Chose to use Family Health PLan (FHP) for the PP0 portion of coverage. The change by the County affect an employee who's doctors and hospitals are not included in the FHP network. Any employee covered by FHP that will use a doctor or hospital not in the FHP network will be subject to a $3,000 per individual or $9,000 per family of three deductible. The City of Ramsey will also only be able to purchase group insurance coverage from 'the County if all 42 instrumentalities also purchase their coverage with the County. Currently this does not seam likely since the instrumentalities would like to continue coverage with the current providers: PHP, Med Centers, and Group Health. Each of these three providers has quoted rates for 1988 coverage to the 42 instrumentalities as a group as follows, compared to 1987 rates: 1987 1988 Employee Family Employee Family Group Health 69.65 186.70 75.90 (+9.0%) 204.65 (+9.6%) Med Centers 73.35 196.70 78.40 (+6.9%) 233.55 (+18.7%) PHP (90% +) 104.55 221.62 (85% - 89Z) 120.23 (+15.0%) 254.86 (+15.0%) 125.46 (+20.0%) 265.99 (+20.0%) PHP has quoted rates that are dependent on maintaining either 90% plus or 85% to 89% of the current size of the risk pool with the instrumentalities. As a Group, the instrumentalities have asked PHP to rate the instumentalities at an anticipated level of between 90% and 100% so as to lower their minimum increase of 15%. The instrumentalities will be meeting on November 12 to decide if as a group they can continue, and thus as a group purchase insurance for the coverage year beginning January 1, 1988.