2012 2:00:00 PM

Monday, November 26, 2012 2:00 PM
Sparks Legislative Building, 745 E. 4th Street, Sparks, NV 89431

Consent Items: 5.2

Title: Discussion, consideration, and possible approval of health insurance changes recommended by the Group Health Committee

Petitioner/Presenter: Chris Syverson/Chris Syverson

Recommendation: To approve the proposed changes to the Health Insurance Changes recommended by the Group Health Committee.

Financial Impact: none

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief: Discussion, consideration, and possible approval of health insurance changes recommended by the Group Health Committee

Background: The Group Health Committee of the City of Sparks is comprised of representatives from all represented and non-represented business units of the City. As outlined in all Bargaining Agreements and Employee Resolutions, it is the responsibility of the Group Health Committee to make recommendations to the City Council regarding the City Group Health Plans. In May, 2012, the Group Health Committee met and reviewed health plan performance for the 2011 calendar year. Members from all business units as well as plan providers and the City insurance broker, LP Insurance, were present. In addition to reviewing plan performance, the Committee reviewed plans of other local governmental agencies, and current trends in plan design. The Committee also discussed and developed a schedule to be followed annually for plan review. This will put in place a formal review calendar and structure to be followed. The Group Health Plans have experienced an average increase in cost of 2.81% over the past 5 years. The current projected cost of the plan is approximately $7.5 million, based on current experience and health care inflation.

Analysis: The following plan changes have been put forth by the Committee to their respective groups and have been affirmed by Operating Engineers and Sparks Police Protective Association. Firefighters Local 1265 did not affirm the changes. Changes to Dental Program • Description o Increase the maximum annual plan benefit to $2,000. Implement a true PPO plan reimbursement plan • Estimated Annual Cost Savings Impact o zero • Member Impact o Increase benefit for all members, potential for higher cost to utilize out of plan dentists All approved changes would go into effect on January 1, 2013 All Members would have an opportunity to participate in an Open Enrollment to make any benefit changes that impact them personally by the changes

Alternatives: 1. The Council may approve the proposed changes to the Group Health Plan. 2. The Council may choose to not approve the proposed changes to the Group Health Plan. 3. The Council may direct the Group Health Committee to another alternative.

Recommended Motion: I move to approve the proposed health insurance changes recommended by the Group Health Committee.

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