CC - 2006-16 - A - Establishing a Health a heath Care Benefit Cost optionr i
RESOLUTION NO. 2006-16A
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, CALIFORNIA, ESTABLISHING A HEALTH
CARE BENEFIT COST SAVINGS OPTION FOR CITY
EMPLOYEES.
WHEREAS, the City currently pays the entire cost of any health insurance
program selected by City Council Members and full-time employees; and
WHEREAS, the City currently pays for the entire cost of Kaiser HMO health
insurance coverage for all permanent part-time employees; and
WHEREAS, the City is committed to ensuring that all employees have some type
of health insurance coverage; and
WHEREAS, according to the Kaiser Family Foundation health insurance
premiums rose 73% between 2000-2005; and
WHEREAS, the City continues to explore ways to control health care costs while
providing employees with health insurance benefits; and
WHEREAS, municipalities have the option of offering employees an optional
health care program that will assist with controlling health insurance premium costs; and
WHEREAS, such a plan can be structured such that participating employees are
offered a flat monthly disbursement amount in place of the City purchasing health
insurance on their behalf; and
WHEREAS, employees who can prove that they have health insurance coverage
through another source are eligible to take a health and welfare benefit as deferred
compensation or salary; and
WHEREAS, the Attorney General of the State of California has ruled in Opinion
05-910 that City Council Members may also redirect the value of health insurance
benefits to a deferred compensation plan; and
WHEREAS, by offering employees the opportunity to enroll in an optional health
benefit which offers a monthly contribution that is less than the current cost of providing
health insurance coverage is a risk-free way for the City to reduce its health care
premium liability.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
• •
SECTION 1. A health care savings plan for the purpose of providing employees
with health benefit options shall be offered to all full-time employees, part-time
employees, and City Council Members, effective October 1, 2006. Initially, said
individuals will have between October 1, 2006 and October 31, 2006 to opt into the
program. Thereafter, any full-time employee, part-time employee, and Council Member
may enroll in the program either during their initial appointment or during the City's
normal open enrollment period.
SECTION 2. To be eligible for the program, participating employees must
demonstrate evidence that they have health insurance coverage through another
source. ,
SECTION 3. The monthly amount offered to City Council Members who enroll in
this option can be taken as deferred compensation and shall be established as follows:
A. PERSCare health insurance coverage costs the City the following
amounts per month:
• Single - $633.27 / month
■ Employee + 1 - $1,266.54 / month
• Employee + 2 or more - $1,646.50 / month
For those City Council Members who are currently enrolled in a
PERSCare plan, the monthly cafeteria amount offered shall be:
• Single - $500 / month
• Employee + 1 - $1,100 /month
• Employee + 2 or more - $1,500 / month
B. Blue Shield health insurance coverage costs the City the following
amounts per month:
• Single - $312.98 / month
• Employee + 1 - $625.96 / month
• Employee + 2 or more - $813.75 / month
For those City Council Members who are currently enrolled in a Blue
Shield plan, the monthly cafeteria amount offered shall be:
■ Single - $250 / month
■ Employee + 1 - $500 / month
• Employee + 2 or more - $750 / month
0 0
C. Kaiser Permanente health insurance coverage costs the City the
following amounts per month:
• Single - $306.54 / month
■ Employee + 1 - $613.08 / month
• Employee + 2 or more - $797 / month
For those City Council Members who are currently enrolled in a Kaiser
Permanente plan, the monthly cafeteria amount offered shall be:
• Single - $250 / month
• Employee + 1 - $500 / month
• Employee + 2 or more - $750 / month
D. PERSChoice health insurance coverage costs the City the following
amounts per month:
• Single - $376.55 / month
• Employee + 1 -$753.10 /month
• Employee + 2 or more - $979.03 / month
For those City Council Members who are currently enrolled in a
PERSChoice plan, the monthly cafeteria amount offered shall be:
• Single - $250 / month
■ Employee + 1 - $500 / month
• Employee + 2 or more - $750 / month
SECTION 4. The monthly amount offered to full-time employees who enroll in
this option can be taken as deferred compensation or as salary and shall be established
as follows:
A. PERSCare health insurance coverage costs the City the following
amounts per month:
• Single - $633.27 / month
• Employee + 1 - $1,266.54 / month
• Employee + 2 or more - $1,646.50 /month
For those full-time employees who are currently enrolled in a
PERSCare plan, the monthly cafeteria amount offered shall be:
■ Single - $500 / month
• Employee + 1 -$1,100 /month
■ Employee + 2 or more - $1,500 / month
• •
B. Blue Shield health insurance coverage costs the City the following
amounts per month:
• Single - $312.98 / month
• Employee + 1 - $625.96 / month
• Employee + 2 or more - $813.75 / month
For those full-time employees who are currently enrolled in a Blue
Shield plan, the monthly cafeteria amount offered shall be:
• Single - $250 / month
• Employee + 1 - $500 / month
• Employee + 2 or more - $750 / month
C. Kaiser Permanente health insurance coverage costs the City the
following amounts per month:
• Single - $306.54 / month
• Employee + 1 - $613.08 / month
• Employee + 2 or more - $797 / month
For those full-time employees who are currently enrolled in a Kaiser
Permanente plan, the monthly cafeteria amount offered shall be:
• Single - $250 / month
• Employee + 1 - $500 / month
■ Employee + 2 or more - $750 / month
D. PERSChoice health insurance coverage costs the City the following
amounts per month:
• Single - $376.55 / month
• Employee + 1 - $753.10 / month
• Employee + 2 or more - $979.03 / month
For those full-time employees who are currently enrolled in a
PERSChoice plan, the monthly cafeteria amount offered shall be:
■ Single - $250 / month
• Employee + 1 - $500 / month
• Employee + 2 or more - $750 / month
•
SECTION 5. The monthly amount offered to permanent part-time employees
who enroll in this option can be taken as deferred compensation or as salary and shall
be established as follows:
A. Permanent part-time employees are offered Kaiser Permanent health
insurance coverage.
B. Kaiser Permanente health insurance coverage costs the City the
following amounts per month:
• Single - $306.54 / month
■ Employee + 1 - $613.08 / month
• Employee + 2 or more - $797 / month
For those permanent part-time employees who are currently enrolled
in a Kaiser Permanente plan, the monthly cafeteria amount offered
shall be:
• Single - $250 / month
■ Employee + 1 - $500 / month
• Employee + 2 or more - $750 / month
SECTION 6. All new City Council Members who can demonstrate health
insurance coverage through another source shall be offered the maximum monthly
health benefit amount as governed by Section 53208.5 of the California Government
Code in lieu of a City paid health insurance program. That amount shall be determined
on an annual basis and can be taken as deferred compensation.
SECTION 7. All new full-time employees hired by the City that can demonstrate
health insurance coverage through another source shall be given the option of taking a
monthly health benefit amount not to exceed the average cost of providing health
premiums for all full-time employees in lieu of a City paid health insurance program.
That amount shall be determined on an annual basis and can be taken as deferred
compensation or as salary.
SECTION 8. All new permanent part-time employees hired by the City that can
demonstrate health insurance coverage through another source shall be offered a
monthly amount not to exceed the average cost of providing health premiums for all
permanent part-time employees in lieu of a City paid health insurance program. That
amount shall be determined on an annual basis and can be taken as deferred
compensation or as salary.
• •
PASSED, APPROVED and ADOPTED by the City Council of the City of
Rosemead on this 26th day of September, 2006.
Mayor, City os mead
ATTEST: 1
l1.ULf (a(b:
City Clerk, City of Rosemead
•
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD )
0
I, Nina Castruita, City Clerk of the City of Rosemead, do hereby certify that the
foregoing Resolution No. 2006-16A being:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, ESTABLISHING A HEALTH CARE BENEFIT COST SAVINGS
OPTION FOR CITY EMPLOYEES
was duly and regularly approved and adopted by the Rosemead City Council on
the 26th of September 2006, by the following vote to wit:
Yes: CLARK, IMPERIAL, NUNEZ, TRAN
No: TAYLOR
Absent: NONE
Abstain: NONE
Nina Castruita
City Clerk