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Home My WebLink AboutBPW-10-03-12-02 Employee Health Contribution Rates Y RESOLUTION BPW-10-03-12-02 A RESOLUTION SETTING 2013 CITY AND PARTICIPANT CONTRIBUTION RATES FOR THE CITY OF CARMEL EMPLOYEE HEALTH BENEFIT PLAN WHEREAS, the City of Carmel operates the City of Carmel Employee Health Benefit Plan (the "Plan") to provide medical and dental benefits for its employees and retirees; and WHEREAS, the Board of Public Works and Safety, as Plan Administrator, is responsible for ensuring adequate current and reserve funding for the Plan; and WHEREAS, the primary source of revenue for the Plan consists of bi-weekly employer and participant contributions; and WHEREAS, it is imperative for Plan revenues to correspond with anticipated expenses; and WHEREAS, the City wishes to reward participation in sponsored activities that promote individual and group wellness, encourage employees to consider a consumer-driven health plan option and incent employee's spouses to elect coverage through their own employers. NOW, THEREFORE, BE IT RESOLVED by the Carmel Board of Public Works and Safety as follows: Effective January 1, 2013, health insurance contribution rates for the City and for its Active Employees will be as stated on Attachment A, for Common Council Members as stated on Attachment B, for Retirees as stated on Attachment C and for COBRA participants as stated on Attachment D, all incorporated herein by this reference. BE IT FURTHER RESOLVED that the rates stated on Attachment A and Attachment B shall be adjusted for participants of the City's wellness program, as outlined below: 1. The City has established a wellness program to complement its insurance plan. The program is open to all full-time Active Employees and Common Council Members. 2. Participation in the wellness program is voluntary; there is no penalty for opting out. 3. Effective January 1, 2013, any Active Employee or Common Council Member who met wellness participation goals for every quarter in 2011 and every quarter in 2012 will be eligible for a $20 reduction to the standard 2013 bi-weekly rates, as listed on Attachment A or Attachment B, as applicable. This rate reduction will be in place as long as the participant continues to meet quarterly goals. 4. Effective January 1, 2013, any Active Employee or Common Council Member who met wellness participation goals for every quarter in 2012, but not in 2011, will be eligible for a $15 reduction to the standard 2013 bi-weekly rates, as listed on Attachment A or Attachment B, as applicable. This rate reduction will be in place as long as the participant continues to meet quarterly goals. 5. Should a participant who is eligible for the incentive described under #3 or #4 above fail to meet the established goal in any given quarter in 2013, he or she will not be eligible for a reduction until such time as he or she once again satisfies quarterly plan requirements. At that time the employee will be eligible for the rate reduction described in #6 below. 6. Except as described in #3 and #4 above, any Active Employee or Common Council Member who participates in the 2013 wellness program shall be eligible for a $10 reduction to the standard 2013 bi-weekly rates, as listed on Attachment A or Attachment B as applicable, as long as the participant continues to meet quarterly goals. 7. Active Employees and Common Council Members who do not participate in the wellness program, or who do not continue to meet quarterly goals, will not be eligible for a rate reduction. They will pay the standard rates listed on Attachment A or Attachment B, as applicable. BE IT FURTHER RESOLVED that participants who meet the stated requirements will be eligible for the incentives described below: 1. The City will make a bi-weekly contribution into the Health Savings Account (HSA) of an Active Employee or Common Council Member who elects to enroll in Plan A, in the following amounts: a. $15.39 for employee only coverage b. $23.08 for employee/spouse or employee child(ren) coverage c. $30.77 for family coverage A Retiree who elects to enroll in Plan A shall receive an equivalent amount by check, half in February and half in July. The HSA contribution amount will change if and when the participant's level of coverage changes, and contributions will cease if coverage is cancelled or, in the case of an Active Employee or a Common Council Member, if the employment relationship is terminated. 2. The City will make a contribution into the Health Savings Account (HSA) or give a premium credit, as described below, for each Active Employee or Common Council Member whose: (a) spouse is enrolled in a City plan in 2012; (b) spouse is eligible for employer coverage through his or her own job; and (c) spouse elects his or her employer coverage rather than City of Carmel coverage in 2013. The employee must provide documentation of the other coverage and verify that he or she is not legally separated and has not filed for divorce from the spouse to be eligible for this incentive. i ., a. For a participant enrolled in Plan A, a bi-weekly contribution into the Health Savings Account (HSA) in the amount of $70.75 if the spouse opts out of both the City's medical and dental plan, or $65.00 if the spouse opts out of the City's medical plan but enrolls in the City's dental plan. There will be no contribution if the spouse opts out of the City's dental plan only. b. For a participant enrolled in Plan B, a bi-weekly premium credit in the amount of $65.00 for medical insurance plus $5.75 for dental insurance if the spouse opts out of both. If the spouse opts out of the City's medical plan, but enrolls in the City's dental plan, the credit will be $65.00. There will be no premium credit if the spouse opts out of the City's dental plan only. The HSA contribution or premium credit will cease if the spouse re-enrolls in the City plan, if the Active Employee or Common Council Member cancels his or her coverage or if the employment relationship is terminated. CITY OF CARMEL, INDIANA By and throu:h its Board of Public Works and Safety 9 /0 -3--/2_._i .ames It rainard, Presiding 0 icer Date 4^ 4/C10 —3-/7 ary A n Burke, Board Member Date iI / /0/__- /t -, Lori Watso :oard Member Date ILATTES : 0 4 /0-3 -71_ A...A_I.,___..,__-4b, •iana Cordray, IA Clerk-Treasurer Date Attachment A ACTIVE EMPLOYEES 2013 BI-WEEKLY HEALTH INSURANCE RATES SURCHARGES AND DISCOUNTS MAY BE APPLIED TO THE RATES BELOW Plan A(HDHP) Total Premium City Portion City% Employee Portion Employee% Employee Only $278.00 $236.00 85% $42.00 15% Employee/Spouse $642.00 $546.00 85% $96.00 15% Employee/Child(ren) $590.00 $502.00 85% $88.00 15% Employee/Family $964.00 $819.00 85% $145.00 15% Plan B(PPO) Total Premium City Portion City% Employee Portion Employee% Employee Only $327.00 $262.00 80% $65.00 20% Employee/Spouse $755.00 $607.00 80% $148.00 20% Employee/Child(ren) $694.00 $558.00 80% $136.00 20% Employee/Family $1,134.00 $912.00 80% $222.00 20% Dental Total Premium City Portion City% Employee Portion Employee% Employee Only $23.00 $17.25 75% $5.75 25% Employee/Spouse $43.00 $32.25 75% $10.75 25% Employee/Child(ren) $40.00 $30.00 75% $10.00 25% Employee/Family $60.00 $45.00 75% $15.00 25% Attachment B COMMON COUNCIL MEMBERS 2013 BI-WEEKLY HEALTH INSURANCE RATES SURCHARGES AND DISCOUNTS MAY BE APPLIED TO THE RATES BELOW Plan A(HDHP) Total Premium City Portion City% Employee Portion Employee% Employee Only $278.00 $208.50 75% $69.50 25% Employee/Spouse $642.00 $481.50 75% $160.50 25% Employee/Child(ren) $590.00 $442.50 75% $147.50 25% Employee/Family $964.00 $723.00 75% $241.00 25% Plan B(PPO) Total Premium City Portion City% Employee Portion Employee% Employee Only $327.00 $245.25 75% $81.75 25% Employee/Spouse $755.00 $566.25 75% $188.75 25% Employee/Child(ren) $694.00 $520.50 75% $173.50 25% Employee/Family $1,134.00 $850.50 75% $283.50 25% Dental Total Premium City Portion City% Employee Portion Employee% Employee Only $23.00 $17.25 75% $5.75 25% Employee/Spouse $43.00 $32.25 75% $10.75 25% Employee/Child(ren) $40.00 $30.00 75% $10.00 25% Employee/Family $60.00 $45.00 75% $15.00 25% C Attachment C RETIREES 2013 MONTHLY HEALTH INSURANCE RATES SURCHARGES AND DISCOUNTS MAY BE APPLIED TO THE RATES BELOW Plan A(HDHP) Total Premium City Portion City% Employee Portion Employee% Retiree Only $603.00 $0.00 0% $603.00 100% Retiree/Spouse $1,391.00 $0.00 0% $1,391.00 100% Retiree/Child(ren) $1,279.00 $0.00 0% $1,279.00 100% Retiree/Family $2,089.00 $0.00 0% $2,089.00 100% Plan B(PPO) Total Premium City Portion City% Employee Portion Employee% Retiree Only $709.00 $0.00 0% $709.00 100% Retiree/Spouse $1,636.00 $0.00 0% $1,636.00 100% Retiree/Child(ren) $1,504.00 $0.00 0% $1,504.00 100% Retiree/Family $2,457.00 $0.00 0% $2,457.00 100% Dental Total Premium City Portion City% Employee Portion Employee% Retiree Only $50.00 $0.00 0% $50.00 100% Retiree/Spouse $94.00 $0.00 0% $94.00 100% Retiree/Child(ren) $87.00 $0.00 0% $87.00 100% Retiree/Family $130.00 $0.00 0% $130.00 100% A. Attachment D COBRA 2013 MONTHLY HEALTH INSURANCE RATES SURCHARGES AND DISCOUNTS MAY BE APPLIED TO THE RATES BELOW Plan A(HDHP) Total Premium City Portion City% Employee Portion Employee% Retiree Only $616.00 $0.00 0% $616.00 100% Retiree/Spouse $1,419.00 $0.00 0% $1,419.00 100% Retiree/Child(ren) $1,305.00 $0.00 0% $1,305.00 100% Retiree/Family $2,131.00 $0.00 0% $2,131.00 100% Plan B(PPO) Total Premium City Portion City% Employee Portion Employee% Retiree Only $724.00 $0.00 0% $724.00 100% Retiree/Spouse $1,669.00 $0.00 0% $1,669.00 100% Retiree/Child(ren) $1,535.00 $0.00 0% $1,535.00 100% Retiree/Family $2,507.00 $0.00 0% $2,507.00 100% Dental Total Premium City Portion City% Employee Portion Employee Retiree Only $51.00 0 $0.00 0% $51.00 100% Retiree/Spouse $96.00 $0.00 0% $96.00 100% Retiree/Child(ren) $89.00 0 $0.00 0% $89.00 100% Retiree/Family $133.00 ° $0.00 0% $133.00 100%