262769 WH17E - CITV CLERK
Q�INK y- FINANCE GITY OF SAINT PALTL Council �`1
� �ANARY - DEPARTMENT 1 2� ���
UF.r� = MANOR Fll@ NO•
� °�' � u il Resolution ��
�Presented By •
� tv
� Referred To Committee: Date
tr�s
Q Out of Committee By Date
oa
� WHEREAS, The Council for the City of Saint Paul has provided for a comprehensive
Health and Welfare Insurance Program for city employees and employees of Independent
School District �25, as provided for under Council File No. 231269, and
WHEREAS, the present hospitalization coverage is provided by the Minnesota
Hospital Service Association and the present medical-surgical coverage is provided by
Minnesota Indemnity, Inc. , and
«IiEREAS, pursuant to the �erms of the present contracts, the above companies have
submitted renewal premium rates for the year of 1974, said proposed rates are as follows:
Blue Cross Employee Dependent Total Family
Active gnployees $15•35 �37•32 $5�•67
Retirees over 65 g.g8 6.�-7 16.�+5
Retirees over 65 (F�a.11 Coverage) 8.26 6.68 l�-.94
Retirees under 65 (with 80�20) 1�+.60 18.35 3?•95
MiriM:esota Indemnity, Inc.
1lctive F.Snployees 7.23 15.19 22.42
Retirees over 65 �E.02 3•53 7•55
Retirees over 65 (Full Coverage) 5.91 5.72 11.63
Retirees under 65 (with 80�20) 2.80 5.62 8.�+2
Eaxly retirees entitled to -active employee coverage will be rated as active employees
above. _ --
Y�-IEREAS, the Health and Welfare Insurance lldvisory Committee has reviewed the
above proposed-rates and recommends that they be accepted, now therefore be it �
RESOLV'ID, that the existing contracts for the hospital coverage and Medical
Surgical Coverage be continued for the calendax yeax of 19'j4, said coverages for 1974
to be identical to the coverages now provided under the existing contracts except
that covera,ges are added to conform with 1973 Minnesota Statui:es Chapters 3�3, 339,
3�, �+71� 585, 651 and that the premium for said coverages for the year of 197�- be as
COUIVCILMEN
Yeas Nays Requested by Department of:
Hun t
Konopatzki In Favor
Levine
Meredith Against By
Sprafka
Tedesco ,
Mme.President Butler
Form Approved by City Attorney '
Adopted by Council: Date
Certified Passed by Council Secretary BY
By
Approved by Mayor: Date Approved by Mayor for Submission to Council
gy By
WHITE - CITV CLERK CO1111C11 2�2;�9
PINK A- FINANCE
BLUFr,�YpM�hrYpRTMENT GITY OF SAINT PALIL File NO.
' Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
-2-
set forth above, and be it
�'URTHER RESOLVID, that the City and Independent School District #625 shall pay
one�half of the dependent 1q74 monthly premiums for both Minnesota Hospital Service
Association and Minnesota Indemnity, Inc. coverage in the total amount of $26.25 and
the employee shall pay the balance of dependent's monthly premium in the amount of
�26.26, and be it
FINALLY RESOLVID that the City Clerk be instructed to send a copy of this
resolution to Minnesota Hospital Service Association and Minnesota Indemnity, Inc.
COUIVCILMEIV
Yeas Bti't1CP Nays Requested by Department of:
Ko�noCpatzki � In Favor
Levine
Meredith ,n Against BY
9�c Roedler —��
'Ped�ecco
Mme.President $�C II1�Yit,
DEC 14 19�3 Form Apgrq�ed by City Attorney
Adopted by Council: Date 11i �
.
Cert' ed s ed by Co il S ry BY "«^'�
By
Approved . Date Approved Ma r Sub ' on to Co ncil
gY By
p�BUSNED u�HED DEC 2 2 1973
DFr_ �� ,��..
, .
� � F a� a ��5
� �o,`�Y ..,; I^��'�� ..
�' �.��F,
�`�—:; �`� �5, �; .
���i �a���� ;, �' �
�'� ��,
� �'
�_..
CITY OF SAINT PAUL
OFFICLr OF` THE CITY COIINCIL
ozz� aazz azvn oov�rr $ous� MARILYN LANTRY
VICTOR J. TEDESCO SAINT PAIIL. MIl\'NESOTA 55102
Councilman P HO N 1� a i 2 � 2 s s-s s o s Legislativa Aide
• January 25, 1974
T0: Councilman Rosalie Butler
Councilman Ruby Hunt
Councilman Willia.m Konopatzki
Councilman Leonard Levine
Councilman Dean Meredith
Councilman Patrick Roedler
FROM: Councilman Victor Tedesco
Earlier this month the Council approved a xate inc�ease from Blue Cross
and Blue Shield-MII covering health benefits for city employees. Since time
was short, the Ma.nagenent and Personnel Committee recommended this action to
the Council. However, it was the feeling of the Committee that the company
explain in detail the justification for this rather large iiicrease.
Accordingly, Mr. Donald Dix of Blue Cross appeared before the Management
and Personnel Committee on Thursday, January 24th and expZained the rate
structure and the justification for the increase. A copy of the "Ra.i:e Data"
sheet he handed out to the Conmittee is attached for your information.
After Mr. Dix's presentation the Coimnittee was of the opir�ion that he
had explained the:company's position and Councilman Konopatzki moved �;�e send
a letter to all Councilmen and bring them up to date on the rate increase.
If you have any questions, please contact me.
cc: Harry Zlarshall
Terry Sullivan
,w.���
`
� � B�U@�.COS$a�d _,�� �'"'�
Q���.. Minnesota ``
Blue Shield �� � ; lndemnity,Inc.
�
Of MiMesotd �'?'�t�\'�..� /:
�_ 'f_ •
RATE DATA
FOR
CITY OF ST PAUL EMPLOYEES GROUP
submitted by ,
BLUE CROSS OF MINNESOTA AND MINNESOTA INDEMNITY,INCORPORATED
Blue Cross Experience
Year Endin� Income Claims Loss Ratio
12-31-70 $1,184.379. $1,256,714 119.7%
12-31-71 1,577,548 1,464,860 92.9%
. 12-31-72 1,857,918 1,832,808 98.6%
12-31-73 2,050,120 2,011,168 98.1%
Rate need for 1974 determined by 1973 experience plus forecast cost trend of 9.2°l0,
making expected loss ratio of 107.3%. This divided by permissable loss ratio of
95.9% (retention is 4.1%) results in a rate increase of 11.7% based on past
e�:perience. Legislative benefits cost an additional 3.7% making a total rate
increase on Blue Cross ot 15.4%.
Minnesota Indemnity Incorporated (Basic.)
Year Ending Income Claims , Loss Ratio
12-31.-71 $333,254 $31.3,783 92.6% .
12-31-72 344,435 371,040 106.3%
12-31-73 395,907 389,930 98.4%
Rate need for 1974 is determined by 1973 experience. No cost trend is allowed for
medical this year, thus, permissable loss ratio of 90.2% (retention is 9.8%) is
clivided by 1973 loss ratio of 98.4% resulting in a rate increase of 9.2°/0 on the
basic coverage.
Minnesota Indemnity Incorporated (Ma'or Medical)
Year Ending Income Claims Loss Ratio
12-31-71 $589,089 $434,412 72.6%
12-31-72 609,952 �588,239 . 95.3%
12-31-73 623,997 554,412 88.7%
As no cost trend was allo�vable for this coverage and the loss ratio fell within the
permissable loss range for major medical coverage (86-90%) , no rate increase was given
on the major medical lines. This resulted in an increase for MII of 4% based on
experience plus 0.2% for legislative benefits making an overall increase of 4.2%.
Blue Cross and Mii offices: 3535 Blue Cross Road � St. Paul, Minnesota 55165 ■ Telephone: (612) 456-4000 �
Blue Shield offices:2344 Nico�let Avenue ' � Minneapolis, Minnesota 55404 • Telephone: (612}338-8511
4y\ i� - � � - 7�?
/ - r \� '1 - `�
v
�. F,�� a�� �
� Blue CrOSSa�a Minnesota
BlueShield � � Indemnity,inc.
of Minnesota �
0 0
November 29, 1973
Mayor and City Council
C ity of St. Pa ul
386 City Hall
St. Paul, Minnesota
Attention: Mr. Harry E. Marshall, City Clerk
Dear Mayor and Councilpersons:
Blue Cross and Blue Shield of Minnesota and Minnesota Indemnity Incorporated
wishes to natify t.he City of St. Paul that the renewal rates for the Employee
Group Insurance Program to be effective on January l, 1974 will be lowered
from the rates quoted in our letter of August 31, 1973.
This revision is in line with the decision rendered by the Cost of Living
Council under Phase IV Price Freeze Guidelines. The revised rate schedule
is as follows:
Active Employees and Retirees in Subgroup -04
Total
Employee Dependent�s) Family
Blue Cross $13. 99 $36. 53 $50. 52
MII Basic $ 3. 14 $ 6. 36 $ 9. 50
MII Major Medical $ 4. 02 $ 8. 81 $12. 83
Statutory Requirements:
Chapter 471 �Gov't Institutions) $ . 33 $ . 30 $ . 63
Chapter 585 (Alcoholic Inst's) $ . 15 $ . 25 $ . 40
Chapter 651 {Sa.ngle Maternity}
�Blue Cross-j. . . . . . . . . . . . . . . $ . 88 $ . 24 $ 1. 12
(MII�. . . . . . . . . . . . . . . . . . . . . . $ 07 $ . 02 $ 09
TOTAL REVISED RATE $22. 58 $52. 51 $75. 09
This represents a reduction from our original rates submission as follows:
Employee Dependent'js) Family
$ . 51 $ 1. 12 $ 1. 63
Retiree
Retirees Over Age 65 $13. 54 $10. 81 $24, 35
Early Retirees with 80/20 $17. 40 $23, 97 $41, 3?
�� ���A�:�
Y���,�"�
Blue Cross and Mii offices: 3535 Blue Cross Road ■ St. Paul, Minnesota 55165 ■ Telephone: (612) 456-4000 ��
Blue Shield offices: 2344 Nicollet Avenue ■ Minneapolis, Minnesota 55404 ■ Telephone: (612) 338-8511
` .
•. ,
Mayor and City Council Page 2
City of Saint Paul November 29, 1973
Under the recent Council action, new early retirees will be included at the
existing rates and rates quoted herein to be effective on January 1, 1974.
Si ce rely, ,�
r,
, �
� �
Donald P. Dix
District Manager
DPD/pje
• r (°'�
_ , � � , _ C- � ��� °``' �l°t
BIUe CrOSSa� ` � Minneso�ta�i
BMue Shield ��� �c� / Fi,�FD Indemnity,Inc.
C/T l l �g P/� '
0 0
October 5 1973 �p�4UXI� a�f ��
' L'M/�yN ��F
Mayor and City Council
City of St. Paul
386 City Hall
St. Paul, Minnesota
Attention: Mr. Harry E. Marshall, City Clerk
Dear Mayor, Madams and Sirs:
Upon review of the rate need for statutory requirements passed by the
1973 Minnesota State Legislature, Blue Cross and Blue Shield of Minnesota
and Minnesota Indemnity Incorporated wish to revise the rates quoted in
the renewal ietter of August 31, 1973, as follows:
Active Employees - Existing Benefits
Total
Employee Dependent Family
Blue Cross $13. 99 $36. 53 $50. 52
MII Basic $ 3. 14 $ 6. 36 $ 9. 50
MII Major Medical $ 4. 53 $ 9, 93 $14, 46
Statutory Requirements
Blue Cross
Chapter 471 - Gov't. Inst. $ , 23 $ . 49 $ . 72
Chapter 585 - Alcoholic Inst. $ . 15 $ . 25 $ . 40
Chapter 651 - Single maternity $ . 88 $ . 24 $ l, 12
MIT
Chapter 651 - Single maternity$ . 07 $ . 02 $ , 09
TOTAL RATE $22. 99 $53. 82 $76, 81
Retiree rates will remain unchanged.
Sincerely,
i
� � —
Donald P. Dix
District Manager
DPD/pje
Blue Cross and Mii offices: 3535 Blue Cross Road ■ St. Paul, Minnesota 55165 ■ Telephone: (612) 456-4000
Blue Shield offices: 2344 Nicollet Avenue ■ Minneapolis, Minnesota 55404 ■ Telephone: (612) 338-8511
December 18� 1�73
Minnesota .Hospital Service Association
z333 University Ave. SE
Mtnneapolis, Minnesata
Gentlemen:
Tran�mitted herewith #'or your information is a copy of C.F. No.
26�769 which continues the exi�ting contracta� for the hoapital
coverage and ra�dical-surgical coverag� for Gity �nplayees and
emplflyeea of Independent School Distr.ict No. 625 for the
es�lendar year oP 19'j� with Blut Cro�� and Minneeota Indemnity, Inc.
Yours very truly,
City C1erk
3�
�nce.
D�cember 18, �q73
Minnesote Indemnity, Inc.
3535 Blue Crvas Roaa
St. Pa�ul, Mintiasota
Gentlemen:
Transmitted herewith �'flr your information is a copy of C.F. N�.
26?769 which continuea the exieting eontracts �'ar. the hospital
coverage and medical-�urg3c�l eoverage Por C1ty employeea and
employe�s c�f Independent School District No. 625 �'or the
calendar year o� i97� with B�ue Cross and Minnesota Indeme23ty, Inc.
Yours very trulYs
City Clerk
��
�ncs.
November 30, �.y73
Mr. Vic�or Tedescr�, Chairman
Nlanagement and Per�onnel Committee
Roam 701 y City �iall
St. Pa,ul, Minnesota
Dear Sir:
The City Council today referred a letter of $lue Cross and
Blue Shield and Minriea�ota Inderanity, Inc. notifyin� th� City
of �he renewal rates far emplayep group insurance to the
Man�gement and Personnel Committee for review.
Yours very truly,
City �lerk
SH:�mw
Attach.
October 12} 1973
Mr. Victor J. Tedesca� Chairman
Management and Personnel Committee
Room 701, City Hall
St. Paul� Mi.nnesota
.Dear Sir:
The Council referred ta yau a letter of Blue Craas and Blue
Shield and Minne�sota 7.�tdemni.ty� Inc. submit'ting a revision of
rates quoted in their ren�wal l�tter of August 31, 1g73.
Ynurs very truly�
City Clerk
ABO:�mw
Attach.
Blue Cross�,d
Blue Shield ` �
of Minnesota •�'
0 0
3535 Blue Cross Road
St. Paul, Minnesota 55165
Mayor and City Council
, City of Saint Paul
, 386 City Hall
Saint Paul, Minnesota
Attention: Mr. Harry E. Marshall
C ity Cle rk
._._.r .,._ . ,.____.��____ _ ---- —-- —
Blue Cross a►� ` _
Blue Shield
of Minnesota ,�'
0 0
3535 Blue Cross Road
St. Paul,Minnesota 55165
Mayor and City Council
' City of St. Paul
386 City Hall
� St. Paul, Minnesota
� Attention: Mr. Harry E. Marshall ,
City Clerk