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CITY OF SAN BERNi IDINO - REQUEST F' ,t COUNCIL ACTION
From: Gordon R. Johnson
Dept: Personnel -
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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
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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
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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~
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PO Box 60811 .'f""
Los Anples, CA 90060
JoI1nD. ~
Senior Group Representative
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Gordon Johnson
Director of Personnel
CITY'OF SAN BERNARDINO
300 North D Street
San Bernardino, CA 92418
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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 "'--_
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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
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