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cnY OF SAN _Rra.b..tO ~ R~UI!ST .eM COUNCIL ACTION
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Gordon R. Johnson
From: Director of Persame1
Dept: PersClllle1
0.: February 23, 1989
flEc-D. - ADMiN_flit:
1989 ff8 28 AM 9= 13
Resolution to Jlut:b:>rize the Execution of
an 1\greeIuent with John Hancock Insuran::e
upon the expiration of the 1\dmi.ni.stration
contract effective 2/1/89, for subsequent
processing of n-'li,....' claims fol.lowi.n;J the
termination of the n-'liC<;ll plan.
Synoplil of Pnlvious Council action:
lIbne .
,f
,
~+.
Recommended motion:
1\dopt resolution.
~ (c. ru~.--
Si~ture
Contact penon:
Gordon R. Johnson
Phone:
5161
Supponing dlltll attached:
FUNDING REQUIREMENTS:
WIJ'd :
Amount:
Source: IAcct. No.)
IAcct. Descriotionl
~ t)"'"
FinlllCl:
Council No_:
75-0262
Agenda Item No
,4,/
CI" OF SAN _R&DINO - RI!QUI!ST ~ COUNCIL ACTION
STAFF REPORT
The City's agreement with John Hancock to administer our
self-insured indemnity health plan expired on February 1,
1989. One of the services provided by Hancock was the
processing of all the medical claims filed under the plan.
That agreement does not provide for Hancock to process runout
claims meaning those received following the termination of
the plan. Therefore, the cost of processing all claims
received by Hancock for covered employees, retirees and.
dependents after December 31, 1988, for Management/Confi-
dential, Police and Fire employees; and after Janauary 31,
1989, for all others must be paid for under a separate
agreement.
John Hancock has agreed to process all runout claims on a
basis of $16.96 per transaction. Based on an estimated 2200
transactions, the cost to the city would be around $37,000.
Mike Baker, our benefits consultant with the Wyatt Company,
prepared the attached analysis of this rate and conclUdes
that it appears reasonable by industry standards and
recommends that we accept it. There should be adequate funds
in the self-insured claims budget to cover this expense. Also
enclosed is a copy of a resolution and a new agreement with
John Hancock.
GRJ: j r
2/1/89
75.0264
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RESor,UTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
3 SUBSEQUENT PROCESSING OF MEDICAL CLAIMS FOI,LOWING THE TERMI-
NATION OF THE SELF INSURED MEDICAL PLAN.
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BE IT RESOLVED BY THE MAYOR AND CO~ION COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The Mayor of the City of San Bernardino is
hereby authorized and directed to execute on behalf of said
City an agreement with the John Hancock Mutual Life Insurance
Company to process all medical claims for the City of San
Bernardino following the termination of the self-insured
medical plan, a copy of which is attached hereto, marked
Exhibit "A" and incorporated herein by reference as fully as
though set forth at length.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
meeting thereof, held ~n the
1989, by the following
day of
vote, to wit:
AYES:
Council Members
. NAYS:
ABSENT:
City Clerk
Page 1
2/23/89
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RESOLUTION FOR THE SUBSEQUENT PROCESSING OF MEDICAL CLAIMS
2 FOLLOWING TERMINATION OF THE SELF-INSURED MEDICAL PLAN.
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The foregoing resolution is hereby approved this
day of
, 1989.
Evlyn Wilcox, Mayor
City of San Bernardino
and legal content:
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A~R~~HEn~
THIS AGREEMENT IS MADE AND ENTERED INTO AT SAN BERNAR-
DINO, CALIFORNIA, THIS DAY OF ,
1989, BY AND BETWEEN THE CITY OF SAN BERNARDINO, A MUNICIPAL
CORPORATION HEREINAFTER CALLED "CITY., AND JOHN HANCOCK
MUTUAL LIFE INSURANCE COMPANY, HEREINAFTER CALLED .COMPANY".
THE PARTIES HERETO AGREE AS FOLLOWS:
1. Services. The Company will agree to process all
medical claims for the City as follows:
a. Beginning January 1, 1989 medical run out claims
will be paid for the Management/Confidential, Fire Safety and
Police Safety employees.
will be
viously
b. Beginning February 1, 1989, medical run
paid for all of the City employees that
covered under the Company medical program.
out claims
were pre-
2. Payment. City shall pay Company $16.96 rate per
claim transaction.
3. Term. This agreement shall be effective as of
January 1, 1989, and shall terminate on December 31, 1989.
IN WITNESS WHEREOF, the parties hereto have executed
this agreement on the date first above written.
CITY OF SAN BERNARDINO
By
Mayor
ATTEST:
City Clerk
Approved as to form and legal content:
John DeLong, Sr. Group Rep.
John Hancock Mutual Life
Insurance Company
.
John Hancock Mutual Life Insura~mpanY
o
Los Angeles Group Office
Group Insurance Operations
4th Floor
425 Shatto Place
(21~)380.1200
r' F'~" ., ,..- D
; ''\ ,..- C. ''''. ~ \! '7:.:..
~
Mail Address:
PO Box 60866. Terminal Annex
Los Angeles. CA 90060
i1S9 fEe -9 AM 10' 29
CITY i cfs~:~fiERliX~
John D. Dol.ol1l
Senior Group Representative
AGREEMENT
John Hancock Mutual Life Insurance Company will agree to process all
medical claims for the City of San Bernardino as follows:
A. Beginning January I, 1989, medical run out claims will be paid for
the Management Confidential, Fire Safety and Police Safety
employees.
B. Beginning February I, 1989, medical run out claims will be paid for
all of the City of San Bernardino employees that were previously
covered under the John Hancock medical program.
The rate per claim transaction will be $16.96. This agreement will
expire on December 31, 1989.
JOHN HANCOCK MUTUAL LIFE INS. CO.
CITY OF SAN BERNARDINO
SIGNED BY
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