HomeMy WebLinkAboutEXECUTIVE SESSION - 04/02/2001 - PERSONNEL/RELEASED RES NO 8-04 COPY
EXECUTIVE SESSION
Date: April 2. 2001
Time: 3:40 p.m.
TOPIC: Litigation:_Personnel:—X _Land Acquisition:
Village Board Village Board
Members Present Members Absent Staff Present
Pat Feichter Jim Petri Gary Parrin
Trustee Trustee Village Manager
Bart Dill
Trustee
Pursuant to a duly made and approved motion and a majority vote at a regularly
scheduled meeting of the Village President and Board of Trustees on March 13,2001
this Executive Session was called to consider a Personnel matter.
Number of pages attached: 3
Date(s) of review for release:
Date of approval for release:
Executive Session
Personnel
April 2,2001 3:40p.m.
Issue: Health Care Plan Renewal for 2001-2002
Following discussion of the Human Resource Officer's March 9,2001 memo on the
Health Care Plan Renewal for 2001-2002, the consensus of the Personnel Committee was
to recommend the following renewal option to the Village Board.
#1. For the HMO Illinois Medical Plan, it was agreed to renew the HMO medical plan
with no increase to the monthly premiums. To provide this renewal level,it is necessary
to incorporate two plan changes recommended by HMO. Those changes are as follows:
A. To increase the Emergency Room use fee from $25 per instance to $50 per
instance. HMO is requesting this change as a result of legislation passed
liberalizing participants rights to utilize Emergency Room services.
B. To modify our current$5.00/$10.00 employee prescription drug fee to
incorporate the use of a prescription drug"Formulary" list complied by HMO
physicians. The resulting employee fee schedule becomes
$5.00/$10.00/$25.00. For Generic drugs and formulary listed named brand
drugs the employee prescription fee remains the same. For any employee who
specifically requests a more expensive named brand drug, their fee will be
$25.00 rather than the previous $10.00.
Current 2000-2001 2001-2002 recommended
HMO monthly premiums Renewal Premiums
Monthly Village Employee Monthly Village Employee
Total 85% 15% Total 85% 15%
Employee only $211.81 $180.04 $31.77 $211.81 $180.04 $31.77
Emp plus one $40831 $347.06 $61.25 $408.31 $347.06 $61.25
Emp two plus $629.05 $534.69 $9436 $629.05 $534.69 $94.36
#2. For the First Commonwealth Dental HMO, they have agreed to renew without any
increase in monthly premiums. The Personnel Committee recommends renewing this
program with no rate increase.
Current 2000-2001 Dental 2001-2002 recommended
HMO monthly premiums Renewal Premiums
Monthly Village Employee Monthly Village Employee
Total 85% 15% Total 85% 15%
Employee only $20.52 $17.44 $3.08 $20.52 $17.44 $3.08
Emp plus one $38.13 $32.41 $5.72 $38.13 $32.41 $5.72
Emp two plus $57.39 $48.78 S8.61 $5739 $48.78 $8.61
#3. VILLAGE PLAN(MEDICAL AND DENTAL)
Discussion began by reviewing the various options available for renewal. Unlike
the HMO, the Village Plan monthly premium rates were expected to go up 19.5%based
upon increased costs and inflation expected in the coming fiscal year. There was
considerable emphasis on the fact that historically, the Village has tried to have the self-
insured plan parallel the hmo plan with respect to level of plan benefits. Additionally, it
was necessary that action be taken to reduce the expected 19.5% increase. It was shown
that if the Village Plan adopts the same changes that were recommended by HMO
Illinois, there would be a savings of 5.5%,reducing the increase to 14%. The Personnel
Committee unamiously recommends applying the same changes requested by HMO
Illinois to the Village Plan. The resulting premium levels would be as follows.
Current 2000-2001 2001-2002 recommended
Village monthly premiums Renewal Premiums
Monthly Village Employee Monthly Village Employee
Total 85% 15% Total 85% 15%
Employee only $316.95 $269.41 $47.54 $361.32 $307.12 $54.20
Emp plus one $665.61 $565.77 $99.84 $758.80 $644.98 $113.82
Emp two plus $724.20 $615.57 $108.63 $825.59 $701.75 $123.84
#4. The Committee discussed in length the issue of the $300/$600/$900 deductibles
currently in use for the Village Plan. A survey recently performed by Human Resources
shows that Elk Grove has the highest deductible when compared to our comparable eight
communities. Additionally, Elk Grove also surpasses the deductible amounts for an
employee with one dependent and an employee with two or more dependents. It is the