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<br />TUESDAYt DECEMBER 8, 1987 <br /> <br />,- <br /> <br />allowed medical charges, as has been the practice, but will pay 80% of what is <br /> <br />described as "usual, customary and reasonable" chargest with the individual <br /> <br />employees paying the remaining 20% of such "UCR" charges until a $650.00-out-of- <br /> <br />pocket ceiling is reached, after which the plan will pay 100% of such "UCR" <br /> <br />charges. A key point to this proposalt City Manager Brown reportedt is to obtain <br /> <br />the cooperation of local physicians and other medical service providers to the <br /> <br />extent that they will charge no more for their services than what is determined as <br /> <br />being usual, customary and reasonable, otherwise the two jurisdiction's employees <br /> <br />must absorb the differences. Mr. Brown also reported that current monthly rates <br /> <br />for medical insurance are $65.00 per employeet which are paid by the City or the <br /> <br />School Board as employers, and $75.00 for family or dependent coveraget paid by <br /> <br />participating employees, whereas (based on claims history) the new rates will be <br /> <br />$60.13 and $91.57, respectivelYt during the first year of a new contractt and <br /> <br />$79.57 and $120.35 (respectively) monthly during the second year of the contract. <br /> <br />Mr. Brown, noting that enough funds for this coverage have been provided in the <br /> <br />current City budget to continue contributing $65.00 per month for each employee <br /> <br />covered, through June 30, 1988t proposed that the City's contribution per month <br /> <br />per employee in 1988-89 be approximately $90.00 (and will so be recommended in his <br /> <br /> <br />proposed 1988-89 City Budget), with dependent or family coverage (effective <br /> <br /> <br />January It 1988) to cost each participating employee $120.35 per month, less a <br /> <br />saving of approximately $30.00 per month to each such employee (for dependent <br /> <br />coverage) by putting into place an Internal Revenue Service provision known as a <br /> <br />"Section 125" programt at the option of such employee, which will permit <br /> <br />health-medical care premiums to be paid with or from "pre-tax dollars" t with the <br /> <br />result (contingent up~n each participating employee's tax bracket) that his or her <br /> <br />net monthly premium for dependent/family coverage will be no more than $90.00 a <br /> <br />montht or $15.00 per month more than his or her present cost. After some <br /> <br />,~ <br /> <br />,- <br />