RESO 2013-17 - Health Insurance-Benefits - 8/20/2013RESOLUTION NO. 2013 -17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS ELIMINATING CERTAIN
BENEFITS, SETTING PREMIUMS, IN- NETWORK DEDUCTIBLES, PRESCRIPTION DEDUCTIBLES AND IN-
NETWORK OFFICE VISIT CO -PAYS FOR THE CITY OF HUNTSVILLE MEDICAL INSURANCE FUND,
ESTABLISHING AN EFFECTIVE DATE FOR THESE CHANGES AND AUTHORIZING ADDITIONAL PLAN
DESIGN CHANGES UNDER CERTAIN CIRCUMSTANCES
WHEREAS the City of Huntsville's Employee Policies and Procedures Manual states, "The City of
Huntsville provides health and dental insurance protection to eligible employees. The
City Manager and Human Resources will be responsible for advising the City Council on
the program and necessary in -house administration;" and
WHEREAS on a budgeted basis, the City of Huntsville is estimating the use of $804,329 of fund
balance in the Medical Insurance Fund in the fiscal year 2012 -2013 Budget; and
WHEREAS the City Manager and Human Resources have been notified of a potential deficit in the
Medical Insurance Fund of an additional $400,000 in the fiscal year 2013 -2014 Budget;
and
WHEREAS it is important to ensure this valuable benefit to active employees and qualifying
retirees is sustainable and well managed.
NOW, THEREFORE, be it resolved by the City Council of the City of Huntsville, Texas, that:
SECTION 1: The above findings of fact are adopted by the City Council.
SECTION 2: The Out -of- Network Maximum contribution for health insurance is hereby eliminated.
SECTION 3: The 4`h Quarter deductible carry -over is hereby eliminated.
SECTION 4: The City will no longer provide Long Term Disability insurance for employees, and make
it an optional benefit for employee selection and the employee's premium
responsibility.
SECTION 5:
The City will no longer provide a life insurance policy, other than what is currently made
available through the Texas Municipal Retirement System, to employees, and make life
insurance not otherwise provided by the Texas Municipal Retirement System an
optional benefit for employee selection and the employee's premium responsibility.
SECTION 6: The health insurance program for the City will change for the following benefits for both
active and qualifying retiree participants:
Premiums -
Single Only - $ 19.80 /month
Employee and Spouse - $366.30 /month
POST -65 Employee & Spouse - $406.12 /month
Employee and Children - $225.50 /month
Employee and Family - $405.90 /month
In- network Deductible —
Individual - $600
Family - $1,800
Prescription Deductible (Annual per person) - $100
In- Network Office Visit Co -Pays - Primary Care Physician - $35
Specialist - $50
SECTION 7: These changes are to be implemented on January 1, 2014. City staff is hereby directed
to take all necessary steps to implement the plan design changes discussed in Section 6.
PASSED AND APPROVED this 20th day of August 2013.
THE CITY OF HUNTSVILLE
c Woodward, Mayo
APP : s VE ► AS TO FORM:
Schne • City Attorney