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HomeMy WebLinkAboutS1-Personnel - .. CITY OF SAN BERNi IDINO - REQUEST F' ,t COUNCIL ACTION From: Gordon R. Johnson Dept: Personnel - ,,"--- 4/11/90 ,~~ Date: ."," Subject: John Hancock employee dental and vision plan rate adjustment Synopsis of Pl'8Yious Council ection: None. Recommended motion: That the following monthly rates for John Hancock's employee dental and vision plan be set effective August 1, 1990, through July 31, 1991: Single $22.43 Employee + 1 $48.99 Employee + family $67.85 ~;f. ~ Signa~e Contact person: Gordon R. Johnson Phone: 384-5161 n/a Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: Source: (Acct. No.) (Acct. DescriPtion) Finance: Council Notes: 75-0262 Agenda Item No .s -I CITY OF SAN BERN~ .IDINO - REQUEST F" A COUNCIL ACTION STAFF REPORT .~ .....-.., The CitY'~f.rs its employees a self-insured vision and dental pl"'~with claims administration provided by John Hancock. Each May during open enrollment, employees select between this plan, the Denticare (Mission Dental) Plan, PMI vision plan, or no vision or dental plans for the succeeding year starting August 1. The combined costs of the insurance plan they select plus the City'S monthly contribution towards such plans as specified in their MOU determines the City's and employees' costs. It is therefore not possible to accurately project the funding requirements. Attached is a letter from John DeLong of John Hancock recommending that our rates for the year beginning August 1, 1990, be increased by 15% to reflect anticipated increases in the costs of providing those services. Based on the recommended rates and the current number of employees enrolled, premiums collected for the year starting August 1, 1990, will be $355,370. Our rates have been the same since January 1, recommends that the suggested rates be approved beginning August 1, 1990. 1989. Staff for the year GRJ: jyr STAFF.DENTAL jyr 4-11-90 " 75-0264 John Hancock Mutual Life Insura .:ompany Group Insurlnc:e Operlttons Los AnioIa Gn>up 0Ifice 4th Floor, 425~PIoce (213)38l).1~ ~- =.=;:=.Ji PO Box 60811 .'f"" Los Anples, CA 90060 JoI1nD. ~ Senior Group Representative ~ Gordon Johnson Director of Personnel CITY'OF SAN BERNARDINO 300 North D Street San Bernardino, CA 92418 c.-"" ~-;:; ~ (\...) ;...4 "" ..... -' ~r' ~ ...,....."':, -;:::J ~ ~~ -;.:. s.~ ;.Jj ~-;-' ' ~ -=.. ~ ~. /.~ fn () -'" I"~ --:. -=- foi .- '-' April 6, 1990 RE: ASO Renewal, 8-1-90 to 8-1-91 Dear Gordon: Based on the following assumptions, you ASO fee was increased 9%: Est. Paid Claims Transactions Employees Dependent Units 1990/91 $313,115 2,625 640 419 Single Employees Employees + one dep. Employees + family 221 200 219 For the period of August 1989 to February 28, 1990 (7 months), your paid claims were as follows: Vision Dental 7 Months $27,295 $139,332 Est. 12 Months $46,790 $238,857 $285,647 The dental claims were trended 15% to 266,325. Vision claims at 46,790 plus the dental claims were estimated to be $313,115 of paid claims. Claims ASO Fees 313,115 57,446 370,561 Total cost Denta1jVision Gordon Johnson April 6, 1990 Page Two "'--_ ...,...-- :*--. ""'. I estimate your theoretical funqing rates should be adjusted 15\. The actual grouping of employees and dependents would change my estimate. Single Employee and one dep. Employee + family 1989 19.50 42.60 59.00 1990 22.43 48.99 67.85 Please feel free to call should you have any questions. Sincerely, qL John D. DeLong Senior Group Representative Attachments JDD:tm ~