Agenda 09/14/1999 - Laserfiche WebLink

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MONDAY, MAY 24, 1999 113 typical for major employers this year, and that smaller employers had seen increases of 15-25%. Other market issues mentioned included rising costs in prescription drugs, more consolidation of providers and less competition, with remaining providers trying to catch up on rates, and increases in drug card costs of 15- 22%. Reasons for increases given included consumer advertising costs, accelerated Food and Drug Administration processing, new and expensive improvements in health care, and increasing elder care costs. Other information and figures were then provided concerning employee usage of the current health care plan, claims experience, and premiums paid. no, the City plan is a fully insured plan. Vice Mayor Teague asked if the City was self-insured and was told The Vice Mayor then asked whether the City could hire three or four insurance clerks and administer its own insurance program. The reply was that this could be done, but there would be significant costs to that approach as well, and that the rates and program being proposed were extremely competitive in the market. Thus, Mr. Brandon recommended the acceptance of the new MAMSI proposal. Vice Mayor Teague asked if provision of health care benefits for retirees was common in the public sector. Mrs. Read stated that it varied, but that she was not sure about the common practice in Virginia. Council Member Haskell asked what the practice of Henry County was, and this was not known. Mrs. Haskell then stated that she would like to know what was typical of other jurisdictions in the provision of retiree health benefits. Vice Mayor Teague stated that he felt there should be a rate differential for retirees. Council Member Roop stated that the City should look at how many folks had come to work for the City for only about five years and left with their health care retirement benefits intact. Council Member Haskell asked Mr. Brandon to characterize the quality of the current health care plan for City employees, and Mr. Brandon stated that it was an excellent plan with very good levels of coverage. He then provided a thorough description of the plan and its costs, with comparisons to market averages. Mr. Brandon then advised Council that diligence would be required in the future to ensure a good plan at competitive prices, noting that a full HMO approach might become necessary at some point.