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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