274197 WHITE - CITV CLERK COUIICII
BLUE - M�oRE GITY �F SAINT PAITL &
CAN�,RV - C�PARTM � J�DP.Y�lfl
File N 0. ���
- ci s l tion
Presented By �
Referred To ommittee: Date
Out of Committee By Date
WHIItEAS, The City of Sain� Pau1 now provides a comprehensfve Health and Welfaxe
Insurance Program for it� em�ployees and employees of the Independent School District
#625, and
WHFREAS, under this program, the City has a contr�,ct with Group Health Plan,
Incorporated to provide Hospital and Medical 5urgical coverage, and
WIi�tEAS, pursuant to the terms of this contract Group Health Plan, Incorporated
ha� submitted rene��al rates for the coverage for the calendar year of 1980 as follows:
l. EMP1'AYEE COVERAGE:
baployee Premium $36.�+2
Family Premium 106.15
2. R�3GUI,,AR RETIRTE:
Retiree Premium (Retiree on Medicaxe A anfl B) 1�+.20 City Pay
Family Pre�nium (Spouse on Medicare A and B) 28.40 City Pay
Family Pr�mium (On� or Nbre not E1i�ible
for Medicare) 83.93 (CitY �'&Y ��•72)
Ret3xee will pay balance of premiums not paid by City, and
RESOLVID, That the City Covncil does hereby authoriz� and direct the proper
City 0fficials to renew the existing contract between the City of Saint Paul and Group
Health Plan, Incorporated, and b� it
FIJRTHER RESOLVED, Tha,t th� City and Independent School Distriet �+625 shall pay
that pc�rtion of the premivms as is agreed upon by the process of collect3ve bar�airiing
and the employee shall pay the balance of premiums due through payroll ded.uction, and
be it
COUNCILMEN
Yeas Nays Requested by Department of:
Butler [n Favor
Hozza
Hunt
Levine _ _ Against BY
Maddox
Showalter
Tedesco Form A proved by i
Adopted hy Council: Date
Certified Passed by Council Secretary By
By 4
tl�pproved by Nlavor. Date _ Ap ed Mayor for Submi
BY - — BY
WHITE — CITV CLERK
PINK — FINANCE COUI�CIl ,�,
CANARV = L�jPARTMENT - J. Devlin CITY OF SAINT PAUL File NO. � ��"�
e�uE n�fAVOR
Co�ncil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
- 2 -
FURTHER RESOLVID, That the proper city personnel be dir�cted to pay th�se
premiums as they fall due, and be it
FINALLY RESOLVED, That the City Clerk shaLl be instrueted to send a copy of
this resolution to Group Health Plan, Incorporated.
COUNC[LMEN Requested by Department of:
Yeas ��MaN�11� Nays
— H�oZ��za �— In Favor
Hunt
I.evine � __ Against BY
Maddox
Showalter
Te o DEC 2 7 1979 Form Approved by City Attorney
A by Coun il: Date
Certified P• ed y Couf�cil S re ary BY
�
/lppro 14avor. t • ���q Approved by Mayor for Submission to Council
_ ��— By
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. M�, Jo� IIwlin
� P+sr�oan�l Of�ia� , -
� 'toom 263, C'�ty Ha11. :
� � Dear sir:
Attaal� for ,your inf'ormatioa !a a itt�Y of Group F�11�h P2.e�ny ?nc.
trans�.ttl,nf; I'snsw�� rsts� fc�r tiro�utp �baa2th Pl.gr�. �vwbra� �hr Z��. .
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2500 COMO AVENUE,ST.PAUL,MN 55108
(612)6413100
Augus t 16, 19 79
City Council
City of St. Paul
c/o City Clerk
386 City Hall
St. Paul, Minnesota 55102
Gentlemen:
The renewal date of the group contract providing health benefits for employees
of the City of St. Paul is January l, 1980.
New rates for Group Health Plan coverage will go into effect upon the group
contract renewal date that have been established for Plan members and their
families for the current year. The monthly rates for employees of the City of
St. Paul and Independent School District No. 625 beginning with the contract
renewal date will be $36.42 for employee coverage and $69.73 for dependent
coverage. The monthly rate for a member 65 or older with Med.icare Part A a:Ld
Part B is $14.20. The monthly rate for a member and spouse 65 or older with
Parts A and B is $28.40 and the rate for one or two members age 65 with Medi-
care A and B and one or more members ineligible for Medicare is $83.93.
Althou�h the Plan has chosen to maintain its current rates, the expenses for
providing and purchasing the HMO services included in its health care program
continue to increase at a percentage somewhat greater than the increase in
the general cost of living. The price of hospital services is rising more
slowly than in the past but when those price increases are coupled with con-
tinuing changes in medical teclznology there is still substantial upward
pressure on daily hospital rates. The medical services portion of the Plan's
HMO program are mainly provided by Plan staff or referral staff but the cost
of rendering those services is subject to th e same increases that affect gen-
eral living cosfis.
Group Health Plan cannot alter the basic factors involved in the rapid rise
in health care costs but we believe our system of having Plan physicians pro-
vide and order the members' health care services substantially modifies their
effect. This is illustrated by the comprehensive type of services that are
being provided in well equipped, well located medical centers for monthly
rates competitive with those of other programs providing much less in total
benefits and convenience.
,
Sincerely,
��
Graydo ewell
Manager, Actuarial Services and Claims
cc: John Devlin
M�B