Minutes 10/25/1983 - Laserfiche WebLink

Home Browse Search

96 TUESDAY OCTOBER 25, 1983 The regular semi-monthly meeting of the Council of the City of Martinsville, Virginia, with Mayor William C. Cole, Jr., presiding, was held Tuesday, October 25, 1983, in the Council Chamber, City Hall, beginning at 7:30 P.M., all members being present, viz., William C. Cole, Jr., Mayor; L. D. Oakes, Vice-Mayor; Henry C. Reed; Eliza H. Severt; and Francis T. West. Following the invocation and Mayor Cole's cordial welcome to visitors present, Council unanimously approved--as recorded--the minutes of its regular meeting held October 11, 1983. On behalf of a special study committee (recently appointed to consider various employee medical group insurance programs, both for the City of Martinsville and the City School personnel), Mr. Norman F. Crews, of Industrial Insurance Management Corporation (the City's and School Board's insurance consultant), by letter dated October 24, 1983, rec- ommended that both entities enter into a contract with Blue Cross-Blue Shield of South- western Virginia, (the lowest bidder), effective November 1, 1983, under a "Minimum PremiuQ" plan for comprehensive medical insurance for employees. Mr. Crews further pointed out that such a plan provides the City and the City School System with most of the advantages of a self-insurance program and none of the disadvantages and should produce a first-year cash flow savings of $344,914.00, inasmuch as the employers will pay monthly to the insurance carrier only a small part of the premium to cover the insur- ance company's pooling charges and cost of doing business and will pay whatever the claims amount to, not to exceed the contract rates. Such a plan, as to City employees, will continue the current weekly disability benefits; and, for medical expenses, will require claimants to pay the first $100.00 of covered expenses each calendar year and 20% of the expenses in excess of $100.00, not to exceed $650.00 After some discussion,