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Home My WebLink AboutMinutes - 2/17/2003 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE MEETING Monday,February 17,2003 Aldermen Conference Room,6:30 p.m. � In Att�endance: Committee Members: Alderman Murgatroyd,Alderman Balger, Alderman Low. Also in Attendance: Mayor Althoff, City Administrator Maxeiner, Assistant City Administrator Lockerby and City Clerk Jones. Also in attendance: Norma Purn 987 Sheffield Drive, Crystal Lake, IL Donald Purn 987 Sheffield Drive, Crystal Lake, IL Gloria Mack 1015 Oakwood,McHenry, IL Chairman Alderman Murgatroyd called the meeting to order at 6:35 p.m. Review and Discussion of Request from McHenry Countv Civil War Round Table For Restoration of Three 95 Infantry Civil War Fla� CJloria Mack af the McHenry County Preservation Commission reminded the Committee of her attendance at the February 3, 2403 City Council meeting. At that meeting Ms. Mack informed Council of the McHenry County Civil Waz Round Table's restoration efforts to preserve the Civil War Flags of the 95�' Infantry Regiment. "The Council declared its support of the project and the matter was directed to the Finance and Personnel Comrriittee for consideration of a donation. Ms. Mack informed the Committee 12%of the total estimated restoration costs have been raised to date, sta.ting it is the intent of the Preservation Committee to begin restoration immediately, restoring one flag per vear until completion of the project. Ms. Mack informed the Committee the Pxeservation Committee is �,equesting a donation of$300 from the City of McHenry to be used in the flag restoration project. Responding to Alderman Bolger's inquiry Ms. Mack stated the flags might be brought to McHenry County for display following restoration. She noted, however, they are and will continue to be permanently stored in the Hall of Flags in the Howlett Building in Springfield,Illinois. Alderman Bolger expressed his suppoz�t for the project and suggested the donation be increased from $300 to $500. Alderman Low concurred with Alderman Bolger. Motion by Bolger, seconded by Low, to recommend to Council a donation of$500 to Save the Flags, McHenry County Civil War Round Table, the check to be payable to MCCWRT— Save the Flag to be used in the restoration effort of three 95�'Infantry Civil Waz Flags. All ayes. Motion carried. Discussion Regarding Proposed Modifications to Emulovee Health Plan Assistant City Administra.tor Lockerby informed the Committee there is an interest in modifying the City's current health plan to contain health insurance costs while improving health insurance coverage for employees. It was noted during the past four years the City's annual health and denta.l insurance expenses ha.ve increased 50%, from $858,000 to $1,268,000. Assistant City Administrator Lockerby stated during the collective bargaining process disciission took place regarding implementing an emp�oyee premium contribution. He noted the Police Officers Union (FOP Unit n has tentatively agreed to the proposed changes and FOP Unit II and Public Works/Pazks Association have aligned their proposals to whatever the Police Officers receive. � Assistant City Administrator Lockerby outlined the benefits as follows: • Wellness Benefit Finance and Personnel Committee Meeting February 17,2003 Page 2 � o The proposed Wellness Benefit would cover regular physical examinations, well baby, OB/GYN visits, and immunizations, in addition to vision coverage. Currently, only vision coverage is covered in the City plan. The proposed Wellness Benefit would provide $300 per plan participant with a total $900 cap per family. Wellness expenses that exceed the Wellness Benefit would be applied to the annual deductible. • Employee Premium Contributions o Employee premium contribution is one method that will assist in controlling the increase in expenditures for the City and improve employee awareness of the impact of utilizing the health insurance. An additional benefit is elimination of employees that may have other health insurance available through a spouse. o It was noted employee contribution is now a current practice in local government. Staff is proposing a "single plus one" category to establish a three-tier coverage system. The proposed premiums are expected to generate $70,500 annually. Assistant City Administrator Lockerby pointed out the true impact to the employee is $37.50/month for Single plus One and $56.2_S/month for Family when considering the City's premium payroll deduction of pre-tax dollars. He indicated the employee contribution as follows: • Single $0 • Single plus One $50.00/month • Family $75.00/month `- • Prescription Drug o Prescription drug costs aze increasing dramatically. An increase from $15.00, $10.00 and $5.00 respectively, is proposed to the employee co-pay in order to increase the employee participation and create a greater differential between the more expensive brand drugs and generic substitutes. The proposed costs are: • Brand Name Prescriptions $25.00 • Formulary $15.00 • Generic $10.00 • Cost for Employees o Summarizing the financial impact per employee comparing the current health plan and the proposed health plan, Assistant City Administrator Lockerby indicated an overall savings for employees utilizing Single and Single plus One coverage and a slight increase for employees with F'amily Coverage. The assumptions include: ��--�-� • premiums to be deducted orm mployee's payc eck at a 25%taac savings; • implementation of a deduch le for the Single plus One tier; and • new amount for the total out-of-pocket expense; • three prescriptions per person per year�, • vision benefit; and • the new Wellness Benefit. � Finance and Personnel Committee Meeting February 17, 2003 Page 3 � The following matrix compares the current Health Plan and the proposed changes to the Health Plan, which are under consideration. Item Current Chan es Under Consideration Wellness Benefit Limited to Vision Coverage Add wellness benefit, e.g., routine physical (Single$150/yr.and Family examination, well baby visits, ob/gyn visits $300/yr.) and immunizations. Include existing Vision coverage. Place a$300 flat dollar amount cap per member with a total$900 cap per family. Wellness benefit is through in network doctors and hos itals. Create a three tier Coverage Options are Single and Add a Single plus One coverage tier to the system Family coverage for health health plan. insurance. Etnployee Premium None Single-$0 Contribution Single plus One-$50/month Famil -$75/month Deductibles Single-$300 Single-$300 Family-$1,000 Single plus One-$650 Famil -$1,000 Total out of Pocket Single-$500 Single$500 � (including Single plus One$1,000 deductible Famil $1,500 Famil $1,500 Prescription Card Retail: Retail: Brand $15 Brand $25 Formulary$10 Formulary$IS Generic$5 Generic$10 Mail Order: Mail Order: Brand $20 Brand $SO Formulary$15 Formulary$30 Generic$10 Generic$20 Out of Network Out o Nerivork Out o Network Benefits(percentage Hospital Coinsurance-80% Hospital Coinswance- 80% of expense covered Physicians—90% Physicians—80% b health lan) Assistant City Admuiistrator Lockerby stated Staff is seeking approval of the tentative modifications to the Health Plan, effective with the April 1, 2003 renewal date. Additionally, Staff requests the Committee's authorization to notiiy employees and to schedule and conduct meetings with all employees to explain the Health Insura.nce Plan modifications prior to the renewal date. A brief discussion ensued. Alderman Bolger suggested some considera.tion might be given in the future to some contribution to the premium being made for Single coverage as well. Motion by Bolger, seconded by Low, to authorize Staff to schedule meetings and draft information on `''the health plan changes for the employees, following discussions with any Alderman not present at the Finance and Personnel Committee meeting held on February 17, 2003. In addition, the plan changes are to be included in the health plan renewal information, which will be brought to Council in March. All ayes. Motion carried. Finance and Personnel Committee Meeting February 17, 2003 Page 4 � New Business There was no new business. Adiournment Motion by Bolger, seconded by Low,to adjourn the meeting at 7:04 p.m. All ayes. Motion can-ied. Respectfully submitted, _ (�,. Steven C. Murgatroy d,Chai an � �