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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Edward Raya
Director of Human Resources
Dept: Human Resources
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Subject: Provision of City's Vision Insurance
benefits.
Date: 9/11/00
Synopsis of Previous Council action:
None
Recommended motion:
That the Mayor be authorized to execute an agreement with Vision Service Plan
(VSP) to expand the City vision insurance benefit, subject to City Attorney approval
and ratification of the final agreement by the Common Council.
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Contact person:
Ed Raya
Phone:
5161
Supporting data attached:
Ward:
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.)
(Acct. Descriotion)
Finance:
Council Notes:
75-0262
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Agenda Item No. 1'1
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
BACKGROUND
The City of San Bernardino offers a comprehensive employee benefit package. Since
January 1999, employees have had a choice of only one vision plan, Delta Vision (PM!).
This was due to Unicare's (formerly known as John Hancock) sudden decision not to
provide benefits (dental and vision) to employers located in California. Throughout this
past year, employees have expressed a strong desire for an additional vision plan choice.
OBJECTIVE
The City's objective was to match or exceed our existing vision plan, while maintaining
or reducing the cost to the City and its employees. After carefully reviewing a number of
vision plans, the following vision program is being recommended:
Vision Service Plan (VSP) - Staff is proposing contracting with Vision Service Plan to
provide our employees with a second choice premium vision plan. This plan allows out-
of-state coverage and no forms or identification cards are necessary. Every employeel
member is identified by their social security number. VSP offers a comprehensive eye
examination through its network of participating doctors which number approximately
12,500, including 24 doctors in the San Bernardino area alone. Essential services and
materials are offered at a reduced cost while offering cost controls on the most commonly
selected patient options. Employees may choose their doctor and change doctors as at
their own discretion. Vision Service Plan is affiliated with the Laser Eye Center and
offers discount on Laser Eye surgery. In addition, the essential services including contact
lenses, basic lenses, eye examinations and a $75 retail frame allowance. Vision Service
Plan offers a fully insured program and no service charge.
COSTING
The monthly premiums for the expansion of City's vision benefits plan are as follows:
Effective 1/1/01:
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$11.73
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$16.74
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$30.02
There will be no additional cost to the City to provide this benefit to our employees. This
benefit was added to enhance the City's current vision plan. The cost of these benefits are
included in the 2000-01 budget.
RECOMMENDED ACTION
We are requesting Common Council's approval to proceed with the introduction this
enhanced vision program benefit to employees prior to the Open Enrolhnent period
which will occur October 1-31, 2000. The effective date of the contract will be January
1,2001. Prior to January I, 2001, staffwill bring forth the written agreement for
Common Council's approval for the Mayor to be authorized to execute the agreement
with Vision Service Plan to provide City employees with enhanced vision benefits,
subject to City Attorney approval.