HomeMy WebLinkAbout29- Personnel C11 . OF SAN BERNARDL _3 . REQUE' T FOR COUNCIL AC 76 _ N
From: Roger DeFrati s r,,D.-0jjWt:'!15econd Admendment to Agreement with
John Hancock Life Insurance Company
Dept: Personnel ;';;v ? i 1 for Administrative Services on City's
Insurance and Benefit Programs
Date: 1-8-88
Synopsis of Previous Council action: (if
On November 4, 1985, the Council approved the basic agreement for John Hancock
Life Insurance Company to provide administrative services and Stop-Loss Insurance
for the City's self-funded health programs. First amendment Extending agreement
was approved on February 2, 1987.
Recommended motion:
Adopt resolution
Signature
Contact person: Roger DeFrati s Phone: 5008
Supporting data attached: Ward:
FUNDING REQUIREMENTS: Amount: N/A Source:
Finance:
Council Notes:
C11 1 OF SAN BERNARDL. 0 - REQUE�T FOR COUNCIL AC% _DN
STAFF REPORT
The City's agreement with the John Hancock Mutual Life
Insurance Company expired on December 31, 1987 . This firm
has provided administrative services for the City' s self-
funded health programs in the area of claims processing and
financial and technical consultation. This service was very
competent and met all contract requirements during this past
year.
The John Hancock Company was extremely cooperative and
professional, and their cost control techniques and coor-
dination of benefits systems have resulted in substantial
savings. For these reasons, the Personnel Department is
recommending renewal of the John Hancock Company' s contract
for the calendar year 1988 .
The only change in the contract is a rate increase of $3 . 14
for ASO and $2 . 51 for Stop-Loss Insurance per employee per
month, which incorporated into the premium and does not
affect a cost to the City.
75.0264 1-8-88
1
2 RESOLUTION NO.
3 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING3 THE
EXECUTION OF A SECOND AMENDMENT TO AGREEMENT WITH THE JOHN
HANCOCX LIFE INSURANCE COMPANY, RELATING TO AN EXTENSION OF
4 THE AGREEMENT FOR ADMINISTRATIVE SERVICES AND STOP-LOSS
5 INSURANCE ON THE CITY 'S INSURANCE A?ND 13ENEFIT PROGRA'MS.
6 BE IT RESOLVED BY THE IMAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
7
8 SECTION 1. The Mayor of the City of San Bernardino is
9 hereby authorized and directed to execute on behalf of said
10 City a Second Amendment to Agreement with the John Hancock
11 Mutual Life Insurance Company relating to an extension of the
12 agreement for Stop Loss Insurance and administrative services
13 on -he City's insurance and benefit- programs , a copy of which
14 is attached hereto, marked Exhibit "A" and incorporate)
15 herein by reference as fully as though set forth at length.
16 I HEREBY CERTIFY that the foregoing resolution was duly
17 adopted by the 'Mayor and Common Council of the City of San
18 Bernardino at a meeting thereof, held on the
19 day of 1988, by the following vote, to
20 wits
21
22 AYES: Council Members
23
24 A.
25 ABSENT:
26
City Clerk
28 (Continued)
PAGE 1
1-8-88
t
RESOLUTION AUTHOR.LGING SECOND AM:,.+D 1ENT TO AGREEMENT
WITH THE JOHN HANCOCK LIFE INSURANCE COMPANY
1 The foregoing resolution is hereby approved this
2 of 1988.
3
4 Mayor of the City of San+Bernardino
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6 Approved as to form and legal content:
7
8 C ' Attorney
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1-8-88
SECOND AMENDMENT TO AGREEMENT
1 (Administrative Services)
2
3 THIS SECOND AMEND14ENT TO AGREEMENT is entered into this
4 day of , 1988, by and between JOHN HANCOCK
5 'MUTUAL LIFE INSURANCE COMPANY (herein called the Insurer) and
6 the City of SAN BERNARDINO, a municipal corporation (herein
7 called the policyholder) .
$ Insurer and Policyholder agree as follows:
9 1. Recitals .
10 A. Insurer and Policyholder entered into an
11 agreement effective January 1, 1986, relating to insurer
12 providing administrative services and Stop-Loss Insurance for
13 the City's self-funded health programs in the area of clai.rns
14 processing and financial and technical consultation.
15 B. Insurer and Policyholder desire to amend said
16 agreement to provide for a one year extension of the agree-
17 ment and to provide that the charge to the Policyholder for
18 the basic administrative services including CAPS shall be
19 $12. 12 per employee monthly and for Stop-Loss Insurance shall
20 be $12.74 rather than the 1987 charge of $8. 98 and $10. 23
21 respectively.
22 2. Term. The term of the agreement is hereby
23 extended for an additional one year, commencing January 1,
24 11988 and terminating December 31, 1988.
25 3 • Amendment 'Co Appendix D. Appendix D of the
26 agreement .s amended to change the monthly premium for
27 administrative services from $8. 98 per employee to an admin-
28 istrative services premium of $12. 12 comprised of basic
(Continued)
PAGE 1
administrative services including CAPS and Stop-Loss insur-
ance from $10. 23 per employee to $12. 74 her employee for
2 calendar year 1988.
3 4. Other Provisions . All other terms and conditions
4 of the agreement shall remain the same and full force and
5 effect .
6 IN WITNESS WHEREOF, the parties hereto have executed
7 this Second Amendment to Agreement on the lay and year first
8 above written.
9
10
11 JOHN HANCOCK MUTUAL LI7E INSURANCE
12 COMPANY
13 By'
14 Title.
15 ATTEST: CITY OF SAN BERNAROI O
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18 City Clerk !2ayor
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20 Approved as to form and Legal Content:
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22 , ity Attorney
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1-8-88
t
X40a%w (mutual Life Insurance Company Group Insurance Operations
Los Angeles Group Office
John D. DeLong
Senior Group Representative
4th Floor,425 Shatto Place
November 16, 1987 (213) 380-1200
Mail Address:
P.O. Box 60866, Terminal Annex
Los Angeles, California 90060
Roger C. DeFratis
Assistant Director
Personnel Department
CITY OF SAN BERNARDINO
300 North D Street
San Bernardino, Ca 92418
Re: Renewal Factors for 1988
Dear Roger:
This letter will confirm the new factors to be effective January 1, 1988.
ASO fee $12.12 per employee
Specific Stop Loss $10.96 per employee
Aggregate Stop Loss $1.78 per employee
Aggregate Monthly Dollar $308.00 per employee per month
Factor
Please review these figures and advise if you are in agreement.
Sincerely,
q cr�
John D. DeLong
Senior Group Representative
JDD/dkr
cc: Mike Baker
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