HomeMy WebLinkAboutMinutes - 8/5/1993 - Finance and Personnel Committee i
MINUTES: FINANCE CONIlKITTEE NlEETING
AUGUST 5, 1993
Members Present: Chairman Locke, Aldermen Bates and Bolger (arrived
� at 7:45 P.M.)
Others Present: Mayor Cuda, City Administrator Peterson, Employee
Representatives Lubben, Schwalenberg, G. Gilpin, Owsley, Elliott,
Wigman, Jones, and Jim Relyea from Arthur J. Gallagher.
The meeting was called to order at 7:15 P.M.
Several employees stated it was their understanding the City was to
seek competitive proposals for group health insurance for the
January 1, 1994 renewal. Chairman Locke stated he did not want the
City to consider self insurance as an option due to the risks it
poses. Alderman Bates agreed with Chairman Locke, stating he wished
to honor the request for a ma�ority of employees, as long as the
costs are not too high. Employees reiterated they are happy with
the current benefit levels and servicing provided by Blue Cross/Blue
Shield.
Chairman Locke then made a motion, seconded by Alderman Bates, to
seek competitive proposals for the current schedule of benefits,
excluding self insurance from consideration. Motion passed 2-0.
Mayor Cuda questioned why the City would want to exclude reviewing
any group health options at this time, as the City would not be
bound to any of the proposals received. There was then considerable
discussion among the Committee members, employee group
`- representatives, Administrator, and the Arthur J. Gallagher
representative about coverage, choices available, risk, premiums,
group historic costs and claims.
Alderman Bolger arrived at 7:45 P.M. , and was asked by Chairman
Locke his views (after being updated on the previous activities of
the Committee) on the subject. Alderman Bolger stated he did not
wish to see self insurance options exluded at this time. Jim Relyea
explained about the coverage options available to the City
including: traditional insurance coverage, our current plan, point
of service, health maintenance organi2ations (HMO's), self
insurance, and pooled self insurance. Mr. Relyea stated that
nationa.tly, 70% of employers are doing some form of self insurance.
When questioned, he did not know the percentage of municipal
employers that had this option. Mayor Cuda questioned Mr. Relyea as
to what he would recommend to the City based upon his experience.
Mr. Relyea stated his recommendation would be some form of self
insurance.
The Committee then reaffirmed its recommendation to the City Council
that Jim Relyea prepare a request for proposal with traditional
carriers, using the current level of benefits. Mr. Relyea indicated
he would also seek alternate proposals which might include other
coverage options and benefit levels. He felt he could have a
renewal quote from Blue Cross/Blue Shield by October 1.
�
There being no further business to come before the Committee, the
meeting was ad�ourned at 7:55 P.M.
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Gerald R. Peterson