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205285bORIGINAL TO CITY CLERK PRESENTED COMMISSI1 1 CITY OF ST. PAUL ,,/V OFFICE OF THE CITY CLER COUNCILA550LUTDO -N= GENERA 205285 Council File No. 203285 —By Severin A. — Mortinson- Whereas, Prior to July a, 1961, by letter, the'—L ' sota Hospital Service Association (Blue Cross) served notice upon the City of increase in rates with respect to its coverages under the, City's Health and Welfare Program; and Whereas, The Notice of increase of rates - aoolicable to the Minnesota Hos- WHEREAS,,prior to Jul 1, 1961, by letter, the Minnesota Hospital Service Association Blue Cross) served notice upon the City of increase in rates with respect to its coverages under the City's Health and Welfare Program; and WHEREAS,.the notice of increase of rates applicable to the Minnesota Hospital Service Association proposed an increased rate for employee coverage from $6.40 per month to $7.40 per month and for dependents' coverage•from $14.60 per month to $18.40 per month; and WHEREAS, the Saint Paul Fire and Marine Insurance Company, prior to July 1, 1961, by letter advised that coverages provided by it under the City group policy No. ,,CEO -920 may be renewed at current rates of premiums for the coverages provided thereunder, except that said Company, by subsequent letter, advised that the major medical expense insurance, which is an optional coverage available to eligible employees at their expense, through authorized payroll deduction, may, if the Council approves, be provided on a broader coverage basis than presently available so as to provide for $100 deductible amount, 80- 20%co- insurance, and maximum limits of $10,000 per accident or sickness instead of the lesser coverage; $200 deductible'• amount,- 75- 25%co- insurance and $5,000 maximum limit currently in effect, at an increase in premium from 70 cents per month for employee only coverage to $1.20 per month, and for an increase in premium for employee and dependents' coverage from $1.80 per month to a monthly premium of $3.00 per month; the proposed major medical .expense insurance coverage shall be provided in lieu of the currently available lesser coverage; and WHEREAS, The Minnesota Mut by letter prior to July 1, 1961, t policy 2881 G may be renewed at it per month per insured employee, ar City that if the Council approves, to amending its group policy with COUNCILMEN Yeas Nays DeCourcy Holland Loss Mortinson Peterson Rosen Mr. President, Vavoulis 5M 6-61 In Favor Against ual Lif a Insurance Company, as advised that the City group s current rate of premium, $1.01 d subsequently proposed to the the said Company is agreeable the City so as to include Adopted by the Council 19— Approved 19— Mayor 205285 Page 2. dependents group life insurance as an optional coverage,, available to eligible employees at their expense through' authorized payroll deduction at an average premium rate of $1.00 per month per participating employee, such dependents' coverage to insure: Ca) an employee's spouse for $1,000 of life and $1,000 accidental death and dismemberment; Cb) each dependent child over six months of age for $1,000 of life coverage only, (c) each dependent child over fourteen days but under six months of age for $100 of life coverage only, dependent children being defined for the purposes hereof as any unmarried child over fourteen days but under twenty -one years of age; and WHEREAS', under said City policy with The Minnesota Mutual Life Insurance Company, evidence of insurability with regard to dependents of any eligible employee shall not be required when an insuring unit shall become qualified under dither of the following provisions: ' (-1)-- whe-rr-applications have "been received from 75 per cent of the employees who are eligible for such dependents' insurance, or (2) when the number of such employees in the unit who have applied for such insurance, added to the number of employees already insured in all qualified units, shall equal or exceed 75 per cent of the total employees eligible in, such' unit and all other qualified units; an insuring unit for this purpose shall mean any City billing unit established by billing practices heretofore adopted between The Minnesota Mutual Insurance Company and the City; and WHEREAS,, The Minnesota Mutual Life Insurance,�Company is agreeable to keeping separate records with regard't.o dividends accruing under the City group policy so that dividends accruing under the City -pay portion of such coverage shall be-returned by the Company under such manner or procedure as the Company ;ndl .I- Page 34 and the City shall mutually agree upon and dividends accruing under the employee -pay portion of such coverage shall be returned to eligible employees either as dividends or as a credit to be applied on additional paid -up insurance for a period of one year in accordance with the direction by the Council of the City of Saint Paul; and WHEREAS, the Council of the City of Saint Paul on July 5, 1961 referred the letters received from each carrier pertaining to the renewal of their coverage contracts with the City to the Health and Welfare and Insurance Committee for study and recommendation; and WHEREAS, the Committee has carefully considered the coverages provided under the City's Health and Welfare Program and by unanimous vote has recommended to this Council continua- tion of the coverages provided to the City by all three carriers subject to the modifications with respect thereto hereinabove provided, Now, Therefore, be it RESOLVED, by the Council ,of the City of Saint Paul, that the Minnesota Hospital Service Association (Blue Cross) group contract with the City, Contract 5600 -2 -4 and The Minnesota Mutual Life Insurance Company group policy with the City, Policy No. 2881 -G, and the Saint Paul Fire and Marine Insurance Company group policy with the City, Policy No. CEO -920, in each instance, be renewed subject to the terms, provisions and conditions herein- after set forth 1. That the Minnesota Hospital Service Association (Blue Cross) Group Contract 5600 -2 -4 be renewed at the proposed increase in rates of monthly premiums, as follows: Current Proposed Proposed Monthly Increase Renewal,' Premium in Monthly Monthly Premium Premium Employee only $ 6.40 $ 1.00 $ 7.40 Dependent(s) only 14.60 3.80 18.40 Employee and dependent(s) 21.00 4.80 25.80 2. That The Minnesota Mutual Life Insurance Company Group Policy 2881G be renewed at its current rate of premium, $1.01 per r Page 4. month per insured employee, and that it be amended to include dependents' group life insurance as an optional coverage avail- able to eligible employees at their expense through authorized payroll deduction at the average rate of premium of $1.00 per month per participating,emp ] oyee. The dependents' coverage shall insure (a) the spouse for $1,000 of life and $1,000 accidental death and dismemberment; (b) each dependent child over six months of age for $1,000 of life only; ( c ) each dependent child over f ou3:teen days but under six months of age for $100 of life only. Dependent children shall be defined as unmarried children over fourteen days but under twenty -one years of age. Evidence of insurability with respect to the dependents of any eligible employee shall not be required when 75 per cent or more of the employees in an insuring unit who are eligible for dependents' group life insurance apply therefor, or when the number of such employees in the unit who have applied for such insurance, added to the number of employees already insured in all qualified units, shall equal or exceed 75 per cent of the total employees eligible in such unit and all other qualified units... 3. That the Saint Paul Fire and Marine Insurance Company Group Policy CEO -920 be renewed at the current rates of premium for the coverages provided thereunder, except that the Major Medical Expense Insurance, which optional coverage, available to eligible employees at their expense through authorized payroll deduction, be amended to provide for $100 Deductible Amount, 80/20',6• co- insurance and Maximum Limit of $10,000 per accident or sickness instead of the lesser such coverage ($200 Deductible Amount, 75/25% co- insurance and $5,000 Maximum Limit) currently in effect, at the following rates of premium: Monthly Premium for Monthly Premium for Current Coverage Proposed Coverage $200 Deductible $100 Deductible 75/25 Co- insurance 80/20;6 Co- insurance $5,000 Maximum Limit $10,000 Maximum Limit Employee only $ .70 $ 1.20 Employee and dependent(s) $1.80 3.00 The proposed Major Medical Expense insurance shall be in lieu of the �+ currently available lesser such coverage; be it FURTHER RESOLVED, that the Health and Welfare Pfiogram for employees of the City of Saint Paul, as exemplified by the agreement 05285 Page 5. between the City of Saint Paul and the Minnesota Hospital Service Association, except as modified with regard to the rates herein - above provided, shall be continued in force for the period of one year from March 1, 1962, all other terms, provisions and conditions provided in said agreement to remain the same as therein stated; be it FURTHER RESOLVED, that the Health and Welfare Program for employees of the City of Saint Paul, as exemplified by the agreement between the City of Sdnt Paul and The Minnesota Mutual Life Insurance Company, shall be continued in force for the period of one year from March 1, 1962, except that said agree- ment shall be modified by a rider to said agreement to extend coverage to the dependents of eligible employees, upon the terms and conditions hereinabove stated, for the forthcoming policy year beginning March 1, 1962, all other terms, provisions and conditions of said agreement to be continued in full force and effect as in said agreement provided; be it FURTHER RESOLVED, that the Health and Welfare Program for the employees of the City of Saint Paul, as exemplified by agreement between the City of Saint Paul and the Saint Paul Fire and Marine- Insurance Company, shall be continued in force for the period of one year from March 1, 1962, except that said agreement shall be modified by rider to such agreement authorizing as an optional coverage, major medical expense insurance coverage as hereinbefore provided for the forthcoming policy year beginning March 1, 1962, all other terms, conditions and provisions of said agreement to remain in full force and effect as in said agreement provided; be it FURTHER RESOLVED, that the proper City officers are hereby authorized and directed to execute such riders,as hereinabove provided for, to agreements between the City and its Health and Welfare Program carriers; be it FINALLY RESOLVED, that the City Clerk is hereby directed to send copies of this resolution to each of the Health and Welfare Program carriers hereinabove referred to. ORIGINAL TO CITY CLERK _ 20 CITY OF ST. PAUL COUNCIL NO. OFFICE OF THE CITY CLERK FILE COUNCIL RESOLUTION - GENERAL FORM PRESENTED BY COMMISSIONER DATE COUNCILMEN Yeas Nays Rolland Loss Mortinson Peterson Rosen Mr. President, Vavoulis ISM 6-61 1. In Favor Against DEC 27 W Adopted by the Council 19- i' lor-C 2 71981 9 \ Mayor r ` yl a DUPLICATE TO PRINTER 205285 CITY OF ST. PAUL COUNCIL NO OFFICE OF THE CITY CLERK FILE COUNCIL RESOLUTION — GENERAL FORM PRESENTED BY COMMISSIONER DATE WHEREAS, prior to Jul 1, 1961, by letter, the Minnesota Hospital Service Association Blue Cross) served notice upon the City of increase in rates with respect to its coverages under the City's Health and Welfare Program; and WHEREAS, the notice of increase of rates applicable to the Minnesota Hospital Service Association proposed an increased rate for employee coverage from $6.40 per month to $7.40 per month and for dependents' coverage from $1460 per month to $18.40 per month; and WHEREAS, the Saint Paul Fire and Marine Insurance Company, prior to July 1, 1961, by letter advised that coverages provided by it under the City group policy No. CEO -920 may be renewed at current rates of premiums for the coverages provided thereunder, except that said Company, by subsequent letter, advised that the major medical expense insurance, which is an optional coverage available to eligible employees at their expense, through authorized payroll deduction, may, if the Council approves, be provided on a broader coverage basis than presently available so as to provide for $100 deductible amount, 80- 20%co- insurance, and maximum limits of $10,000 per accident or sickness instead of the lesser coverage, $200 deductible amount, 75 -2% co- insurance and $5,000 maximum limit currently in effect, at an increase in premium from 70 cents per month for employee only coverage to $1.20 per month, and for an increase in premium for employee and dependents' coverage from $1.80 per month to a monthly premium of $3.00 per month; the proposed major medical expense insurance coverage shall be provided in lieu of the currently available lesser coverage; and WHEREAS, The Minnesota Mutual Life Insurance Company, by letter prior to July 1, 1961, has advised that the City group policy 2881 G may be renewed at its current rate of premium, $1.01 per month per insured employee, and subsequently proposed to the City that if the Council approves, the said Company is agreeable to amending its group policy with the City so as to include COUNCILMEN Yeas Nays DeCourcy Holland Loss Mortinson Peterson Rosen Mr. President, Vavoulis ism "1 In Favor Against Adopted by the Council 19— Approved 19— Mayor • •J_ -• .,,- r,' •, � - tl -• [♦ , - ]f' ! + r - � .}'.po ,r` ' '.J � Y'rt J•,�'_�• s Y •`••f \ -'' C, • <l .. • � + ^ •y "-• •it= • t\ .T '' ' j' t� ,` _, • r ' _- -F . . R .. l�`,.f ,` , F Paged deperYdeht"gr.oup- .life. insurarice..as` an` opt onal;.coveragef' `available •to' eligible ' employees ;at 'their- expente' through{ Mr authorized payroli' deduction it :an- average premium rate of : $1.00 -per month* per, :participating .employee, such , dependents', . , - coverage- to, insure',:... '_ ,.:• :r �(_a) an''ein�iloyoe's spouse.for�$1 00 of life 'and` ' $1,.000.: accidental .:death and "dismemberment t (b)- each Aep.endent child -: over' s.ix months -of age Y ] for $1; ©00 -of ..life. coverage, .only (c), each depen Pent , child over- f ourtsen das but Una; y er six Months, ©f _age for $lOQ of life , erage - only, _ ,dep - endent , ` n?�b i ng defined n:r -e• d ' ` f 'o'`•r° t. he pu r_ p -`�©' s e: s �c h ildre ' .� ' - "' - _ , -- • �.: . . � -- - ` hereof a.s any' unmarried - child over, f aurteen; days' but under twenty -o;a ~ A yews of '$gel a.nd k %. WHEWS', °,under 'said Citjrl policy= with''`F;he Nlinnesot�a :Mutual Life. Insurance, Company,' evidence of` insurabilityy!! with regard to dependents of any "e,ligib�.e er�ployea .shall not `be required •'when a�z insuring unit ,shall become qualified. _ • . ` under =dither of, the_ f Mowing' .prgvisionsr. ' (1){wh6n applications hive been received.from 7� pe-r cent of the,. employees who are' e.l'i.g3ble ,.. 'for such° dependentsf insurance, off: , (Q) when the number of .such employees in the uiai,t. <_ • f who; have appli'ea Ior'such insurdr�ce, the number, of - employees: already insured in all qualified units;��$hall' equal or exceed .75 er - a ' cent'-`,of, %the total.,,employees eligible in such f. • } ` unit- 'end, all other -qua lifie,d knits; f -an insuring unit. far this,-purp.o$e -sbaxi mean any ,City billing -f unit established, by- billing, practices heretof qr.e . adopt ed ` 'between' The Minnesota ,'Mutual ' insur,aric'e Compa_ my and the City_; and' • ', WHEREAS; "The` Mjoge" sot.a Mutual. Life 'Insurance Company'- is` agreeable ta._keeping. *bp�rat.e :records.•'with. regard to dividend! "' accruing under the - ,City., group, policy• so• that i(lvtdenda accruing udder the'City-pay portion of ,such coverage shall .be returned nw %ir by the. Company under such rasn�ner.• or, proce lure as, the Company : t -- - - .. .• i` - -F - '1 , `• r '. f ` - .. `'.�. it -`, . .r. V' • ' ., `''' 20,52 R-5 Page 3. r and- the City shall- ;Mutually agree upon and dividends ,accruing - under • the employee-pay portion of such doYerage $hall• ba •returned ' to eligible employees, either as. dividends or -as, a credit' to be �r- applied on additional paid -up inrrurance for a pperiod of one .year- in accordance with., the direction by the Counci T'of the City, of, Saint _pa u1.; a nd - WHEREAS; the Council ' of the City of Saint Paul • on � July 5,y 1961 referred the _ letbars- received fro each 'carrier pertaining- to the renewal: of ;their coverage, contracts with the 'City to_: the Health and- W- elfare� and Insurance Committee for study and commendation; and- re WH.ERSAS, the-Committee has 'carefully considered the. -' - coverages- .provided'und_er the- Cityls Health and vielfare_ Program and by unanimous-vote-has recommended to , this' Council continua -- ; tion of 'the covorages provided--to. ahe City, -by ,a 11- three carriers' ` subject to. the..mod'ifi.cations with respect thereto hereinabove_ : provided, ' Now, Theref ore, be , it RESOLvED, by.the Counci'1 of the City,. of Saint Paul, that the PAinne$ote Hospital IS'ervice Association (Blue Cross) group , contract with-the City, ; Contract ' 5600+2 -4 and The Minnesota. - Mutual Lif a - Insurance Company group, 'policy with the- City, Policy . No. and the'-Saint Paul Fire and Marine Insurance- Company group policy with.the City, Policy= No. CEO -920, ,in each instance, be renewed subject to the terms,, provisions and .conditions, herein - - after set ,f orth s , That the Minnesota Hospital - Service •As.sociaiion ( Blue . Cross) Croup Contract 5600- 2- 4.:be- renewed. at the proposed increase ' in rates of monthly premiums,' 'as follows3 Current} Proposed Proposed, F- ` ;Monthly• Increase Renewal _ Premium. in t�o'nthly. Monthly ' Premium Preis' iim only' 1.00 ' $ 7.40' Dependent (s )only $14,.60 • 3.80 18,.4 0' Emp'loy'ee and _ dependent(s) 21.00• 4.60 25480 = 2. That The' Minnesota Mut ua1 Life Insurance Company Group - r Policy 2881(3 be - renewed at. its current rate of ' premium, -$1.01- per k s c "VCZ month per-, per, `i.nsur = emplooyee, anal .that , it be amended to. include dependents R_ group � lif a ,insurance • as, an optional coverage avail- able- to, eligible 'employees ;at'- their' - expense through authorize payrolls deductonn 8t 'the' BXer?ge ree" of 'premium of $1.00 per ' month.':per. °particfpating emp� —ee The dependents,'" ' coverage ihall `.insure (a) the - spouse or 4 { $1 O.00..of .life and' $1,000,'aocidente•1 "-death and, - dismemberment; • (b ,each dopend0t. °child ',.over s k months of age for $1,000` of ` lif e• 'only; c) each' dependent child over f oumen -days but 'under' ' six months:of :ale for "$ - 100 :.of life: only.•., -:D,ependent children;'ahall. be def fined as, unmarr- fed' :ch3:ldret�''.o "r ' f ourteaWdiys but under ttwent�' ne •years of age.. s A , s '.A E'idertce ` of insurability - -with respect to the dependents - ` _ of ..any'eli�ible. employee' shall not- kse required when 75 per ,cent or more .of the employees. `in an insuring unit who ase eligible - for - dependents group life, insurance- -apply therefor, or when the ,dumber. of 'such , empldyees •ii! -. the - _unit. ',who • halve;. applied for - such insurance, added to the, #�� n e, num•ber- of.:e�npl�oyees'al:re,ady;• insured', in all qualified = units, shall ..equal 'or _ezcaed �73 per cent of •the ,; _ total• employees' eligible ;in such unit and.all other qualif.i®d.- hit - s 3.' That Saint r ga1ul -'Fite Fite", 1 ririe '-Insurance'Com,an cI' _ p Y° Group -- Policy, CEO -920 bey" reviewed 'at'. the current' rates of premium for the cove 'ages; provided thereunder, except-that the Ma jor -- Medical'- • ° Expense' Insurande ;. whic-4 ©ptional coverage,. available to : eligible . employees at their 'expense., through .authorized. payroll' deduction;.: be'amended• to-prgvide for $100 Deduc•tible• Amount , "SO /20,x; co insurance -,and . tda -x3mum Limit of $1.4, 000. per accident or'.sitkness :.;' instead of the lesser such'` coverage ($200 Deductible Am' 0 unt,• " 75/25% -.00- insurance' and , $5; 000 - Maximum - Limit) currently l n of f•edt; at _ the f o.11._owing�, rates of :premium: __ Monthl Premium'' f or �donthl P sinium f or Current CO.verage Proposed Coverage $200,Deductible' ", -•$10G,Deductible , a '75/25��' Co- insurance 80/206 Co-insurance $5.000--M ai im UM _Limn $10, 000 "Maximum limit - ' . Employee''=• only = . , - $ .r , $ l : 20 Employee and. dep.eindent(A $1.80; The proposed �;ajorled'ica]. &xpense insurance shall be in. lieu of the := • currently available leaser; such , covera`ge; be it' FURTHER, RESOLVED, that the'`Healih� -and Welfare Program' =for" em p to ee's of °the Cit. :of Saint Paul ',as :exam lif fed by' th a P y y P a $regiment - r '! ., .; _ ,, a •' 1 f L • - 5. ,` ,,b , _ .- ' _ •. - , -• - imp ._ Y 1 •;` • _ '- - - ' • - _ _ a F_ _ ,` S _ _ - page .5 .of, between the City Saint Paul,'and the' Minnesota -Hospital' Service - Association; except' as modified with .,regard, to, the. rates- herein - above 'provided, ,.shall be continued i`n force_ for the p.eri.od of. one -" . year from March i ,1962;_ all other' terms, provisions and coniitions., ;... z provided -in said agf: ' irient" to remain the same. as - therein stated; . r FURTHER RESOLVED,, that the Hg.a,lth ,and Welfare' Prograin =for ,empl,oyees of the ; Gity of .Saint 'T ul, as exemplified by the agreement . between the City. .of, Sint. ;Paul`, and The-.Minnesota Mutual ' Life Insurance. Company, shall be continued in _force for the _ . period , of one year from _'Mar:ch- ' 1, '. 1962, _except .that said "agrae,, ment shall ,be modified .by a ;rider 'to said. agreement to -6ctend : - :; coverage- t6 upon the. terms •arid conditions heze.inabove' stated, f or the _f orthco�ning, y..; policy' 'year, beginning March-- ',' 1962,-.all other- terms; provisions and conditions.,. of, , said - agreement to be continued in full f arce , . and. effect as in said agreement, provided;' be it- _' re,Progrsin - FURTHER RES��.VED, that .the Health and we If are,' f o� the empI' jees'. of ,'the City of Saint Paul, as ', exemp1if ied', by agreement., between -the -City- of Saint Paul and the Saint. Paul ' "Pita ;and - Marina �Yiisurance Company,, 'shall be continued in f o_rce . 'A ' - f.or,the.'peri.od of one: year -fro►n Marc 1,.•1962,,, except that said- r " .. ,_ egreemebt "'shali -bel.mod�if,ied by rider` to such agreement authorizing, as, a.n ..,optional - ..coverage$ maJot m,edicil expense Insurance insurance coverage 'hereinbefore as rovided fQr,the' fortbpomino policy year _ beginning March 1.962, 'all. other �temms,, conditions and provisiotis- _ = 'of said- agreement remain••in full. force and effect as n said x s. _to: agreement �prov1de413 f proper City officers .dare : hereby •.`• : ' FUR71j8R RESOLVED,: - that' the o _ authorized•and directed to - execute'such'rid hernei rid bov,e _ provided' for, to agreements •between'the,City and its Health and ' - 'W elf are, Program' .carriers a, be it. _ = FINALLY RESOLVED,; `that' -the City Clerk �is ,hereby' directed - .. Y . ; -to 'send,; copies-',of : this resolution to each of the- Health.'and = Y= Welfare Program. carriers here'inabove.,'raf erred; -to. J , DUPLICATE TO Pt2INTER 1 20528 ' CITY OF ST. PAUL COUNCIL NO _ OFFICE OF THE CITY CLERK FILE COUNCIL RESOLUTION - GENERAL FORM PRESENTED BY COMMISSIONER DATE D COUNCILMEN Yeas Nays Holland Loss Tn Favor Mortinson Peterson Rosen Against Mr. President, Vavoulis eM "I Adopted by the Council DEC 2 71961 19— Approved � O ? 7 1941 19— Mayor Ok IR . R(SOTR HOSPIAL SUN( RSSOC19TIOR a" 1 1 g D P, f V __ � � �� M am VJ% MIR MIRRESOTOI�UEm�Ii9,IoC. � December 26, 1961 Mayor and City Council City of St. Paul Honorable Mayor and Council Members: Pursuant to our conversation of today with Mr. C. H. Stevenson, Insurance Consultant, City of St. Paul, regarding a three (3) year Blue Cross rate quotation for the. City of St. Paul group and re- lating to his past several inquiries on the subject, please be advised that it is true we have one group in force at this time to which a three (3) year rate guarantee was applied. Since that contract was effected, we have discontinued the practice of entering into contracts for longer than a one (1) year term. We now experience rate all large groups on a year to year basis. Inasmuch as the City of St. Paul group falls into this category, we have already quoted rates. for the contract year March 1, 1962, to February 28, 1963, on a one (1) year basis. DPD : ymd Sinc er ely, kwj "axmt W-0 D. P. Dix District Manager QUADRUPLICATE TO DEPARTM €NT . 2052 ,85 CITY OF ST. PAUL O NCIL NO. OFFICE OF THE CITY CLERK COUNCIL RESOLUTION — GENERAL FORM PRESENTED BY COMMISSIONER DATE WHEREAS, prior to Jul 1, 1961, by letter. the Minnesota Hospital Service Association fBlu* Cross) served notice upon the City of increase in rates with respect to its coverages under the City'$ Health and Welfare Program; and WHEREAS, the notice of increase of rates applicable to the Minnesota Hospital Service Association proposed an increased rate for employee coverage from $6.40 per month to $7.40 per month and for dependents' coverage from $14.60 per month to $18.40 per months and WHEREAS, the Saint Paul Fire and 14arine Insurance Company, prior to July 19 19619 by letter advised that coverages provided by it under the City group policy Rio. CEO -920 may be renewed at current rates of premiums for the coverages provided thereunder, except that said Company, by subsequent letter, advised that the major medical expense insurance# which is an optional coverage available to eligible employees at their expense, through authorized payroll deduction, may, if the Council approves, be provided on a broader coverage basis than presently available so as to provide for $100 deductible amount. 80 -20%o- insurancet and maximum limits of $109000 per accident or sickness instead of the lesser coverage, $200 deductible amount, 75- 25%co- insurance and S5#000 maximum limit currently in effects at an increase in premium from 70 cents per month for employee only coverage to $1.20 per month. and for an increase in premium for employee and dependents' coverage from $1.80 per month to a monthly premium of $3.00 per month; the proposed major medical expense insurance coverage shall be provided in lieu of the currently available lesser coverage; and WHEREAS, The Minnesota Mutual Life Insurance Company, by letter prior to July 1, 1961, has advised that the City group policy 2861 G may be renewed at its current rate of premium. $1.01 per month per insured employee, and subsequently proposed to the City that if the Council approves, the said Company is agreeable to amending its group policy with tho City so as to include COUNCILMEN Adopted by the Council 19— Yeas Nays DeCourcy Holland Approved 19— Loss In Favor Mortinson Peterson Mayor Rosen Against Mr. President, Vavoulis Page 2. dependents) group life insurance as an optional coverage available to eligible employeas at their expense thorough authorized payroll deduction at an average premium rate of $1.00 per month per participating employee, such dependentsv coverage to. unsure a (a) an employee's spouse for $19000.of life and X1,,000 accidental death and dismemberment; (b) each dependent child over ,six months of age for $1.006 of life coverage onlyn., (c) each dependent, child over fourteen days but under six months of age for $100 of life coverage only, dependent children being defined for the purposes hereof as any unmarried child over fourteen days but udder twenty -one years of ages and V�iHEREAS, under said City policy with The Minnesota Mutual Life Insurance Company, evidence of insurabillty with regard to dependents of any eligible employee shall not be required when an insuring unit shall become qualified under dither of the following provisions; (1) when applications, havo boon received from 75 per cent of the employees who are eligible for such dopendenta' insurance, or (2) Aen the number of such employees in the unit ' who have applied for such insurance, added to tho nwber of employees al,'ready insured- in all qualified units; shall equal or exceed 75 per cent of the total eamployeea eligible in such unit and all other qualified units; an insurin unit for this purpose shall mean any City billing unit astabhehed by billing practices heretofore adopted between The Minnesota Mutual ,insurance Company and the City; and WHEREAS& The Minnesota Mutual Lifo insurance OrMpany is agreeable to keeping separate records with regard to dividends accruing under the City group policy so that dividends accruing under the City -pa,y portion of such coverage shall be returned ' by the Company under such manner or procedure as the Company r J. ?0.85 Page S. and the City shall mutually agree upon and dividends accruing under the emplo o"pay portion of such coverage sh811 be returned to eligible employees eithor as divr Bends or as a credit to be applied on additional paid -up insurance for a poriod of one year in �accordanca with the direction by tho Council of the City of Saint Pauli and' WHEREAS, the Council of the City of Saint Paul on July 50 1961 referred the letbars received from each carrier ,pertaining to the renewal of their coverage contracts with the City to the Health and Welfare And Insurance Committee for study and recommendation; and WH:8REAS, the Committee has carefully considered the coverages provided under the City's Health and Velfare Program .and by unanimous vote h4s recommendad to this Council continua- tion of the coverages provided to the City by all three carriers subject to the modifications with respect thereto herei.nebove provided, Now, Theref ore M be it RESOLVED,, by the Council of the City of Saint Paul, that the Minnesota Hospital Service Association (Blue Cross) group contract with the City, Contract 5600 -2 -4 and The Minnesota Mutual We 'Insurance Company group policy with the City@ Policy No. 2888 *C3, and the Saint Pool Fire and Marine Insurance Company group policy with tl)o Cityo Policy Igo. CEO-920i, in each Instance, be renewed subject to the trarms, provisions and conditions herein- after set forth a 1. That the Minnesota Hospital Service Association (Blue Crosse Group Contract 5640 -2 -4 be reneged at the proposed incroais In rates of monthly premiums, as follows: Current Proposed Proposed. Monthly Increase Ronewal Premium in Monthly Monthly Premium Premium Employee only $. 6.40 $ 1.00 $ 1.40 Dependent (s) only 14.60 8.80 18.40 'employee end dependents) 21.00 4.811 25480 ,. 1 2, That The Minnesota Mutual Life Insurance Company Groflp Policy 28816 be renewed at, its Current rate of premium, $1.01 per 20-5285 Page 4. month per insured employee, and that it be amended to include dependeatO group life insurance as an oPtional covdrage avail- ably to eligible employees at their expense through authors zed payroll deduction at the average .rate of premium of SL OO ,per month per participating employes. The dopendentst coverage shall insure (a) the spouse for l 000 of life and $1000 accidental death and dismomberment; `M each dependent child over six months of age for $1,000 of life only; (c) each dependent child over f ouften days but under six months of age for $100 of life only. Dependent children :shall be defined as unmarriod children over fourteen- days but under twenty -one years of age. Evidence of insurability with respect to the dependents of any eligible employes shall- not be required when 75 per cent or more of the employees in an .insuring, unit who are eligible for dependents* group life insurance apply therefor, or when the nwnber of such employeeo in the unit woho have applied for ouch insurance, added to the,number of employees already insured in all qualifiod units, shall equal or exceed 75 percent of the total employees oligible in such unit and all other qualified units. 3. That the Saint pa.ul Fire and Marine Insurance Company Group policy CEO"920 be renawod at the current rates of prtMIUM for the coverages provided thereunder,, except that the malor medical. Expense Insurance# which optional coverage, availablo to eligible employees at thety expense through �Uthoriaed payroll,doduotion, bo amended to provide for $100 Deductible Amount, 80/2% co- insurance and. Maximum Limit of $100000 por aeci.d+ent or sicknoss instead of ,the lessor such coverage ($200 Deductible Amount, 75/273% co- insurance and $5,000 Maximum Limit) currently in eftscti at they following rates of premiuml morithly Premium for Current Coverage $200 ]deductible 75/25% Co- insurance. 15, 000 - Maximgm Limit Employee only $ .70 Employee and dependent(s) $1.80 Monthly premium for Proposod coverage $100 DedUctiblo 80/20% Co,- insurance 110.000 k%xAmurn Walt 5 1.20 5.00 The proposed Major Medical Eipenes insurance shall be in lion Of the currently available lesser such coverage; be it FURT14HR RES©LV.EDs that the Health and Welfare Program for employees of the City of Saint Paul, as exemplified by tho agreoinent 9 05285 gaga 5i, ry between the City of Saint Paul and the Minnesota Hospital Service ,Association, except as modified with regard to the rates herein above provided, shall be continued in force for the period of one year from March It 1962, all other terms, provisions, and conditions provided in said agreement to remain the same as therein stated b e it FURTHER MOLVED 0 that the Health and Welfare Program for a employee4 of the City of Saint Vaul, as exemplified by the agreement between the City of Saint Paul and The Minnesota Mutual Life Insurance, Company, shall be continued In force for the period of one year from March 1, 1962, except that said agree- ment shall be modified by a rider to said agreement to extend coverage to the dependents of eligible employees, upon the terms and conditions hereinabove statods for the forthcoming policy yoar beginnin March 1, 1962r all other totmi rovisions and conditions of sa d agreement to be continued in hull force and effect as in said agreement provideds be it FURMER RESOLVED# that the Health and Welfare 'Program for the employees of the C'Jty of Saint Pahl, as exemplified by agreement between-the City o. Saint Paul and the Saint maul Piro and t4arine Insurance Company, shall be continued in force for the period of ono year from March It 1952, except that said agreement shall be modified by rider to such agreement authorizing as an optional covers e, major medical expense insurance coverage as herainbefore Provided ided for the forthc=ng policy year beginning march 1s 1962, all other terms., conditions and provisions of said agreement to remain in full force, and effect as in said agreement provided; be it FURTHER RESOLV9D, that the propor City officers are hereby authorized and directed to execute such riderepaa here.inabove provided for,, to agreements between the City and its Health and Welfato Program carriers; be it FINALLY RESOLVED* that the City Clerk is hereby directed to send copies of this resolution to each of the He4lth and Welfare 'Program carriers horeinabove referred to. QUADRUPLICATE TO DEPARTMENT r CITY OF ST. PAUL COUNCIL NO OFFICE OF THE CITY CLERK FILE COUNCIL RESOLUTION - GENERAL FORM PRESENTED BY COMMISSIONER DATE r COUNCILMEN Yeas Nays Holland Loss Mortinson Peterson Rosen Mr. President, Vavoulis am 6.81 Tn Favor A gainst 205285 Adopted by the Council 19— 1-Y50; 2 7 1981 Approved 19— Mayor