272863 . ._.. . i . . . . . .
WHITE - CITV CLERK .
PINK - FINANCE � G I TY OF SA I NT PA LT L Council
CANARV - DEPARTMENT � J�D .(�11.T1 � F1Ie NO. ��2 ��
6LUE - MAVOR �
i Council Resolution
Presented By �'
�
Referred To Committee: Date
Out of Committee By Date
WHEREAS, on qctober 31, 1q78, President Carter signed into law an amend-
ment to the 196�+ Civil ;Ri�hts Act. The amendment makes 3.t the responsibility of
employers to treat pre�nancy the same as ar�y other condition for a11 employment
rela,ted purposes, such�as health care covera.ge. The law (PL 95-555) aPP��s to
all employers who emp y fifteen or �re employees. The compliance date for the
City of Sai.nt Paul is�ay 1, 1979, and
WIiEREAS, the� city's present contrac� limits ma,turnity benefits to $50 and
that conception must occur while the coverage is in fbrce and which limitations or
time requirements are not applicable to other diseases or injuries, and
WHEREAS, th� Blue Cross and Blue Shield of Minnesota proposed to amend
our contract �to comply; with Public I�aw No. 95 as per letter dated April lOth attached,
and
WHIItEAS, thi�s change will be made at no additional cost for the remainder
of the contract yeax Qnding December 31, 1979; now therefar�e be it
RESOLVED, ttaa.t the Council of the City of Saint Paul hereby authorize
Blue Cross and Blue S�ield of Minnesota to prepare the proper amendments aadif`y3.ng
the contract with the�City of Saint Pau1. to comply with the afore-mentioned. public
la.w, and be it
FINALLY RESQLVID, that the City C1erk send a copy of this resolution to
Blue Cross and Blue S�ield of Minnesota.
COUNCILMEN ' Requested by Department of:
Yeas Nays
Butler � [n Favor
Hozza
Hunt
I.evine d __ Against BY —
Maddox '
Showalter
Tedes • MaY �, ig79 Form pro d by torney
Adopted b ouncil: Datei
�
Certif d Passe Council c � BY
B
�#p rvv by ;1�lavor: � _ �AY � App v d y Mayor for Su m' ion to Council
BY �,() — BY :
�y�'L
�g�t�MED MAY � 21979
. . _ , ,
i .
Dear Employee/Group Health Plan member:
We are pleased t� inform you of some changes effective April 29, 1979, in
the pregnancy benefits contained in your Group Heaith Plan program. These
changes will provide additional protection for child-bearing-age women mem-
bers of the Plan' and will bring our program into compliance with a new
federal law requfring that pregnancy benefits be provided on the same basis
as group benefits for other conditions. �
The changes are:
1. The benefits of the contract covering a woman member at termination
of pregnancy will be furnished. In• other words it is no longer
necessa�y to have coverage at conception in order to receive bene-
fits at termination of pregnancy.
2. Convers�ely, no benefits will be furnished at termination of preg-
nancy unless the woman is then covered by an active Group Health
Plan contract. If the contractholder severs employment and this
causes ia woman's Group Health Plan coverage to end before termina-
tion of pregnancy, all pregnancy benefits are lost at that point.
Therefoxe, the contractholder should usually exercise his or her
privilel�e to continue group coverage if Plan pregnancy benefits
are desired. This privilege is limited, so see your personnel
office 'for details.
3. Any pregnancy benefit in the contract which is paid on an indemnity
(money benefit) basis will be chan�ed to yield a benefit which is
equivalent to benefits for "any other illness."
As a one time e�ception to 2, above, if a woman is covered by a Group Health
contract at conception beginning prior to April 29, 1979, the hospital benefit
of the contract will be provided on termination of pregnancy if she is not
covered by another group contract.
Sincerely,
'�
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I. 2500 COMO AVENUE,ST.PAUL,MN 55108 '•�j� Z�i � �: }��f ��J�
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csi2�sai-sioo CiTY �L�nK,
' ST P,�UL� MfMM«�
April 20, 1979
City Council
City of St. Pau�
c/o City Clerk I
386 city Ha1I '
St. Paul, Niinne�ota 55102
StJBJECT: The N�w Pregnancy Discrimination Act
The purpose of this letter is to inform you of certain provisions of the
new Pregaancy D�.scrimination Act and of the ar_tion which Group Healch Plan
ha5 take:i to br�ng the benefits pravided u.r,.der your group contract inco
co3pli.�r.ce with, this law.
�Jn October 31, 1978, President Carte'r signed inte ldw the Pregnar�cy �3iscri�n-
ination rlct (PL'9�-555) , �n ame�zdment to the 19h� Civil Rights Act. Z'he Act
ma�c4s it the re�ponsibili*y of ��mplevers to treat pY•egnancy the samN as any
c�rl:ex condition'! for all emp'�oyment-r�lated purposes such as health care
c�-uerage. '
C�vcr��e
The law 3pplies to all employers who employ 15 ar raore emnloyees. Tlie law
cavers fe;*�ale e�ployees, married or single, iinder eiti�er single or family
����erage. It a�plies to all HhiO and insurance programs incl.uding self in-
su�ar.t_e.
F�i�.hc,irg?� this l�w does not directly apply to de�endent spouses and d�penc3ent
children, other federal and state statutes rsay r_equire such coverage. �'r�r
tl:is reason, and ta pYOVide unifoi:r, coverage, Group 'riealth Plan is ��tend�n�
t?iese heFiefits ao bot:� leper.den�, s�ouses ar.d dependent chilcren and to all
��oups regardle�s of size.
Benefit Change 'I
].. There �.i-11 be no Taaiting per�_o�. for fiospital �regnancv beaefits in yo�.ir
�Y011p T'c^.t;3Y�)_��5 C�f WIlEIl COriCG['•i����11 OCCllrY2C.. Your present��roup CiiTil:r2Ct
p:o•:iues .tli �� hnspi.ta.). bc.�.�r.ri�� ta:c rrt�;n�a�}r w�11 he pai.d on7y if concep-
. L�ion acr_tirs w;�i7.e Pla.i ^_o�.*�_ra;� i> i>>. force. :i�,��:c t�e ,�ew i�ca nc� 'vJ81�1:1F
f�erioci can e applied t:a pre�,n�.n�ic�s wi��ich :�., rc>t� a;;pl�..ed t^ o�her r.:ondi--
tions for w ich bt�ne�its are �a;��ble su�h as 3'.1 append��tor�� o: r�:pair of
a broken bouhe.
,
'�,�.. m.��..8
-2-
2. The extension of hospital benefits for pre4nancies beyond the termination
of employment no�a grovided bv v�ur group c.ontract will be discontinued
for pregnancies commencing on or after Apr 29. 1979. You should also be
aware of the following points:
a. If STl employer extends coverage for employees and dependents when
such et�ployees are totally disabled on the date of termination of
full-time employment, then coverage nust also be extended to em-
ployees who are totally disabled upon employment t�ez�nination
because of pregnancy.
b. If an employer continues to pay premiums for employees disabled
on the date they terminate full-time employment, then premiums
must be paid for female employees terminating full-time employ-
ment because �f toral disability caused by pregnancy.
If an employee terminates en:plo}�r,:ent for reasons other than disability, he
or she should be encouraged to retain grou� ceverage for the extension geriod
of up to 6 months or when eli�ible. for other group ,.overage, whichever is
first, in erder to help ensur�• thaL r.:aternity bcn�fits (including routine
nursery care) will be covered an the sar�e basis as prior to the employment
termination.
3. Any pregnancy benefits in yeur contract which �re payable on an. indem�ity
ba�is will be modified to cur_form wi.th the cor,tract benefits for sickness
and injury. � ��� �
Effective Date
The effective date of this new benefit is Apr 29,19?9, for group contracts in
existence on October 31, 1978. A letter witl follow changing the language of
the group master contract to coincide with this program.
No Premium Increase
There will be no increase in Grot� Health P1an rates at present because of this
benefit change. Higher costs, if any, will be reTl:cted in your next contract
r.�n��a3?. r3r�.
Nu reduction in the level of other benefiLS is ailowed under the law until
October 31, 1979, in non-union situations and in t:nion situations the level of
benefits may not be reduced until the terminaCion of the existing union manage-
ment agreement or October 31, 197�, ��Thichever occurs first.
A sample letter is enclosed i�hich can be uW�d to tell emplDyee-members of your
Gruiip f�ealth program about this benefit cl:m.ige. If you have any qiiestions, �
please contact John Thames, Manag�� of Registration und ITnrerw'riting, at 641-3117.
Sincerely,
. � ,� �� � ,
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I�aurici: J. 1�;Cka��''
General Mar�ager �
MJM/lau
Enclosure
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' BIl7@ CtOSS�a ' - �
Blue Sh'teld , �s'�
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3535 Blue CYOSS Road General& Lo�g Distance (612)450-8000
, P.O. Box 43560 Customer Service (612)456-5050
St. Paul, Minnesota 55164 M11 Customer Service (612)450-833J
Apri1 10 , 1979
i
Mr. John Dev.Zin
Employer Benefits Coordinator
Ci ty of St. PauZ
265 City H�1Z
St. Pau1, MN 55102
Dear John,
B1ue Cross and BZue Shield of Minnesota proposes to amend
tne existir�g contract with the City of St. Pau1 and School
District 625 to incZude the provisions of PubZic Law �5
xelating td maternity care as outlined in our Zettex of
March 1�, 1979.
This change wi11 be made at no additionaZ cost for the
remainder oif the contract year ending December 31, Z979.
However added benefits paid under this amenc�rnent wi1Z
undoubtedZy� reduce the group's reserve.
This changei wi11 be m,ade effective Ma� 1, 1979 in accordance
wi th the 1 aw, and amendmen ts to the certi fi cate wi ll be
prepared fo�,r distribution prior to that date.
You s truly,
: ����� �
Donald P. D}ix
Sr. Acct Ex�cutive
I
DPD:j1m
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. . . � . . . f' . w
� e �,
; If you as the em�loyer provide payment of charges for employees who are disabled on the date
they terminate full-time employment then you must also provide premium for a female
� employee who t�rminates full-time employment because of total disability caused by preg-
nancy.
,
� If an employee terminates employment for reasons other than disability he or she should be
encouraged to retain group coverage for the 6 month extension period in order to help ensure
that maternity b�enefits (including routine nursery care) will be covered on the same basis as
prior to his or her termination.
If the employee ahooses not to take the 6 month extension orif he or she still needs maternity
coverage after the 6 month extension, you should encourage the employee to obtain a BCBSIVI
conversion policy to ensure that maternity coverage will be available.
If an employee t�rminates full-time employment and the employee or his or her dependent is
totally disabled on the date of termination, Major Medical coverage may be extended to cover
maternity withoult payment of charges.
C. On May 1, 1979�BCBSM will remove limitations and exclusions relating to pregnancy which
are €ound in ben�fits such as Diagnostic X-ray and Laboratory or Major Medical,etc. Female
dependents and fQmale employees will receive the same benefits.
D. Some employee �rograms cunently provide "fully paid" benefits (Usual, Customary and
Reasonable chazg� programs) for other conditions, but limit pregnancy to a flat rate payment
of a certain amo�tnt of money. To comply with the law,as of May 1, 1979 if full payment is
provided for.other conditions, then full payment will also be made for pregnancy.
As of May 1, 1979 these new benefits will be effective for your group and claims will be paid
accordingly. If your Goverage does not currently provide the same benefit for pregnancy as for any
. other condition, there'will be a rate increase to reflect these statutorily mandated increased bene-
fits. Within the next few months, you will be informed about the amount of additional monthly
charges needed to cover the increased cost of these benefits.
Since additional benef�ts will be paid beginning May 1, 1979, monthly charges must be increased
effective May 1, 1979. Due to the magnitude of the task of reviewing all rates,not all groups will
be contacted prior to ]Iv1ay 1, 1979. If you aze contacted subsequent to May 1, 1979 your monthly
. charge increase will be,prarated back to May 1, 1979. The effect on your rates will depend on the
additional benefits req�iired for your specific group.
Enclosed is a sample netice to your employees which informs them of the new law and its effects.
Please contact your BC$SM marketing representative if you have any further questions.
Sincerely,
�t' '
� t !yG'l�I�'
James Q. Regnier
President
� , , ,
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Blue Cross a� : .
Blue Shield : ���`�
d Mi�nesota ,,-
3535 Blue Cross Road General& Long Distance (612)450-8000
P.O. Box 43560 Customer Service (6121 456-5050
St. Paul, Minnesota 55164 MII Customer Service (612)450-8331
TO: All Group Accounts
DATE: Mazch 12, 1979
RE: Pregnancy Benefit I -The New Law-General
. II -Specific Affects on Your Blue Cross/Blue Shield Program
� III - Suggested Communication With Your Employees
Dear Health Coverage Coordinator:
On October 31, 1978,President Carter signed into Law an amendment to the 1964 Civil Rights Act.
The amendment makes it the responsibility of employers to treat pregnancy the same as any other
condition�for all employment-related purposes such as health care coverage. _
The following is an explanation of the law and Blue Cross a�d Blue Shield of Minnesota's under-
atanding of how it affects your group health care program.
Tlie law (PL 95-555) applies to all employers who employ 15 or more employees. Blue Cross and
Blue Shield groups of 2-14 will also be affected through the uniform administration which we must
employ. The law coveis female employees, married or single with either single or family coverage.
It applies to all employer-employee benefit programs including HMO membership as well as self
insurance.
The effective date of the law is October 3 i, 1978, however, there is a 180 day period before the
benefits must be in place for programs of health benefts in existence on October 31, 1978. New
benefit programs initiated after Octqber 31, 1978 must comply with the law now. You shUUid be
awaze that no reduction irt the level of other benefits is allowed under the law until October 31,
1979 in t�on-union situations and in union situations the level of�benefits may not be reduced until
the termination of the existing union management agreement or October 31, 1979 whichever occurs
first. �
To assist employer groups covered by Blue Cross and Blue Shield of Minnesota in complying with
thc iaw,the following steps have been taken:
A. Many health care programs prior to the new law have had the requirement that conception
must occur while coverage was in force for pregnancy benefits to be paid. Under the new law
no waiting period can be applied for pregnancy unless an equal waiting period is applied to
such services as appendectomy and other conditions for which benefits are paid. Therefore,
� effective May 1, 1979, there will be no waiting period for pregnancy in your group regardless
of when conception occurred.
B. In order to treat pregnancy as other conditions,the extension for pregnancies now provided by
most BCBSM group policies will be discontinued for pregnancies commencing on or after
May l, 1979. Except for the coverage under the disability features described below, an
employee must have paid coverage in force on the date services are rendered.
If coverage is extended for employees and dependents who are totally disabled on the date the
employee terminated full-time employment, then coverage must also be extended to them if
they are totaIly disabled because of pregnancy. �
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Civil Senrice Commission $ j t: � � AUL Director of Personnel
Mr.A.R.(Dlck)Zangs,Chalrman ' � � � � Thomas D. Gleason
o�.George O. Bem PERS � L OFFICE
Mn.Marylyn Deneen � Assistant Director
Bemard P.Wright
' . � � � � • i��.f
ST. PAUL, MINNESOTA 55102 '
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April 12, 1979 APR 1 2 ?979
MAYOR'S QFfIC�
Mayor George Latimer
3�+7 Ci-�y Ha11. i
Saint Paul, Minriesota
Dear May�r Latimer:
Attached hereto is a resolution which we suggest you propose to the City
Council for pas�age in order that our contract with the Blue Cross and B1ue
Shield of Minnesota wi11 conform to the requixements of Public Law No. 95•
Respectflil.�y,
� �
tititi G �� �
0 C. DEVLIN '
loyee Benefits Coordinator
Att. �
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''�:i\��� � ^��f � D a t e ; Apri 1 16, 1979
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�' O : �ainr !°aul Cii;� Councii .
Fs� C� �1l = C��f3riit�7E.'� 0il I ANCE, MANAGEMENT AND PERSONNEL _ .
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RUBY HUNT;chaifman, makes fihe fotic�.ving
reporfi on C.F. � Ordinance -
(3) Q Resol�'tion -
: � '. . - �} Ofh er � - _ -
I �IL� : - -
�The Finance Committ'ee, at its meeting of April 16, 1979, recommended approvai of
the fol l owi ng: - -
l . Resalution transferring 19Z9 budget funds from Contingent Reserve to Parking � �
: - Meter Monitor Codes to.provide funds to place twa additional full-time Parking -
Meter Manitors '�on the street. - - -
� 2. Resolution to ddjust� the age at which applicants may apply for positions in -
the City Service to conform with the new Federal Retirement Law.
� 3: Resolution to r�odify the B1ue Cross-Blue Shield contract fior increased .
: ma�ternity benefits without additional premium charges. .
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"';C�' ilt�Y�L SEVF:tiT1-. ��T.COR S:�I\T F.1L�, �t_►\\E5`J�:1. Sjic?