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HomeMy WebLinkAbout21-Personnel cnY OF SAN _Rra.b..tO ~ R~UI!ST .eM COUNCIL ACTION < 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 . 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o 1 2 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. 4 BE IT RESOLVED BY THE MAYOR AND CO~ION COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 5 6 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 . o o RESOLUTION FOR THE SUBSEQUENT PROCESSING OF MEDICAL CLAIMS 2 FOLLOWING TERMINATION OF THE SELF-INSURED MEDICAL PLAN. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 The foregoing resolution is hereby approved this day of , 1989. Evlyn Wilcox, Mayor City of San Bernardino and legal content: .:-~ . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 ~ n ~ 25 26 27 28 o o 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 TITLE h TITLE