Resolution No. 74671 RESOLUTION NO. 7467
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
3 VERNON RENEWING THE UNIVERSAL CARE GROUP SUBSCRIBER
AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND
4 UNIVERSAL CARE AND AMENDING SCHEDULE C TO SAID
AGREEMENT
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7 WHEREAS,,the City Council of the City of Vernon, by the
8 adoption of Resolution No. 7252 on December 15, 1998, approved and
9 authorized the execution of a Universal Care Group Subscriber
10 Agreement M10 Plan (90-100) with Universal Care, dated November 30,
11 1998; and
12 WHEREAS, the Group Subscriber Agreement was effective
13 January 1, 1999, and specifies a Renewal Date of January 1, 2000; and
14 WHEREAS, Section 8(a) of the Group Subscriber Agreement
15 provides that the Agreement may be renewed on the Renewal Date by
16 resolution of the City Council of the City of Vernon; and
17 WHEREAS, pursuant to Section 8(b) of the Group Subscriber
18 Agreement, Universal Care has requested a six percent (6%) premium
19 rate increase for the period January 1, 2000 through
20 December 31, 2000; and
21 WHEREAS, Universal Care has presented the City with a new
22 Schedule C to the Group Subscriber Agreement to reflect the increased
23 premium rates which will supersede and replace the current Schedule C;
24 and
25 WHEREAS, the City Administrator/City Clerk by letter dated
26 December 16, 1999, has recommended to the City Council that said
27 Agreement be renewed and that the amended Schedule C be approved.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
renews the Universal Care Group Subscriber Agreement (90-100) by and
between the City of Vernon and Universal Care and approves the amended
Schedule C, a copy of which is attached hereto and made a part hereof
as Exhibit "A."
SECTION 3: The City Clerk of the City of Vernon shall send a
copy of this resolution to:
Universal Care
Attn: President
1600 E. Hill Street
Signal Hill, CA 90806
SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 21st day of December, 1999.
ATTES
�J
BRUCE V. MALKENHORST, City Clerk
LEONIS C. MA URG, 1kayor
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1 STATE OF CALIFORNIA )
ss
2 COUNTY OF LOS ANGELES )
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
5 hereby certify that the foregoing Resolution, being Resolution No.
6 7467, was duly adopted by the City Council of the City of Vernon at a
7 regular meeting of the City Council duly held on Tuesday, December 21,
8 1999, and thereafter was duly signed by the Mayor of the City of
9 Vernon.
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11 BRUCE V. MALKENHORST, City Clerk
12 (SEAL)
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SUPPORTING
DOCUMENTS
EXHIBIT 'A
ic
CITY OF VERNOIY
8ohedule C
Effective Deft: 01/01/2000
Getup Nutt =- 10010A
Ml0 Plan
Family Idly
Empluyvv only 101�.42�
Fmployce + one 233.23
Employee + Two or Morc 405.9$
e
A — 1
s I
CITY COUNCIL
1
LEONIS C. MALBURG ? r
Mayor. .
THOMAS A. YBARRA
Mayor Pro-Tem
Wm. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST CITY HALL
City Administrator / City Clerk 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 9005
FAX (323) 581-7924 TELEPHONE (323) 583-8811
December 16, 1999
City Council
City of Vernon
Honorable Members:
DAVID B. BREARLEY
City Attorney
FAX: (626) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
8 Police Chief
FAX: (323) 583-5236
Universal Care HMO has requested a renewal of the Universal Care
Group Subscriber Agreement and has submitted a new "Schedule C",
attached hereto, reflecting a 6% premium rate increase for the
Universal Care HMO program for the period January 1, 2000
through December 31, 2000. Based upon the most recent Universal
Care census report, cost increase will be as follows:
# of
Type Enrollees
Employee(E) 50
E+1 35
E+2 116
FROM TO
Rate
Total
Rate
Total
$95.68
$4,784.00
$101.42
$5,071.00
$220.03
$7,701.05
$233.23
$8,163.75
$382.97
$44,424.52
$405.95
$47,090.20
Retiree(R)
1
$95.68 $95.68
$101.42 $101.42
R+1
6
$220.03 $1,320.18
$233.23 $1,399.38
R+2
0
$382.97 $0
$382.97 $0
COBRA
0
$0
$0
TOTAL
208
$58,325.43/Month
$61,825.75/Month
$699,905.16/Year
$741,909.00/Year
Universal Care HMO
December 16, 1999
Page 2
It is hereby recommended that the Universal Care Group
Subscriber Agreement, by and between, the City of Vernon and
Universal Care be renewed for the policy year from January 1,
2000 to December 31, 2000, and that a new "Schedule C" to said
agreement, be approved.
Very truly yours,
Bruce V. Malkenhorst
City Clerk
BVM/gst
Enclosures
4
MEMORANDUM
TO: Bruce V. Malkenhorst, City Administrator
FROM: Joan Francone, Risk Manager/Personnel Assistant
DATE: December 7, 1999
SUBJECT: UNIVERSAL CARE HMO GROUP POLICY 10010A RENEWAL
Universal Care HMO has requested approval for a 6% premium rate increase for the
period January 1, 2000 through December 31, 2000. There has been no rate increase
from Universal Care since date of inception January 1, 1996. This rate stability is
practically unheard of in today's HMO market.
Based upon the most recent Universal Care census report, cost increase will be as
follows:
FROM TO
of
enrollees Rate Total Rate Total
E 50 x $95.68 $4,784.00 $101.42 $5,071.00
E+1 35 x $220.03 $7,701.05 $233.23 $8,163.75
E+2 116 x $382.97 $44,424.52 $405.95 $47,09020
R 1 x $95.68 $95.68 $101.42 $101.42
R+1 6 x $220.03 $1,320.18 $233.23 $1,39938
R+2 0 x $382.97 $0 $382.97 $0
COBRA 0 $0 $0
208 $58,325.43/month $61,825.75/mondi
$699,905.16/year $741,909.00/year
E = employee
R = retiree
As you know the Universal Care HMO is a complete risk transfer. The City pays no
cost other than the premium. Last year the employee co -pay per visit was increased
from $0 to $10.00.
The Universal Care program is a successful HMO program. It is recommended that
Council approve the 6% rate increase for Universal Care effective January 1, 2000.
JF/ca
Enclosures
SENT BY:ADNINISTRATION
;12- 3-99 ; 3;06PM
UNIVERSAL CARE -
909 599 0146;# 2/ 2
ir
in
CITY OF VERNON
Schedule C
Ef% etivc Date: 01/01/2000
Ge+aup Number; 10010A
Mloplann
Family Mix
Emplvyvv Only
F,mployoo + One
Employee + Two or. More
Hato 101.42
233.23
405.95
PETER H. COBO INSURANCE AGENCY, INC.
PLANNED EMPLOYEE BENEFIT PROGRAMS License # 0698204
PETER H. COBO, CLU P.O. Box 97, SAN Dimxs, CALIFORNIA 91773 (626) 331-0865 FAX (909) 599-0146
December 6, 1999
Ms. Joan Francone
Risk Manager
City of Vernon
4305 S. Santa Fe
Vernon, CA 90058
Re: Universal Care -Renewal
Group 10010A
Dear Joan:
Enclosed is a letter dated November 13, 1997 from Mark Gunter, Director, Underwriting
Services, Universal Care, wherein Universal requests a 6% rate adjustment for the policy year
January 1, 2000 to January 1, 2001.
The renewal rates will be as follows:
Renewal Rates:
Current Rates:
I ncrease
Employee
$ 101.42
95.68
$ 5.74
Two Party
$ 233.23
220.03
$ 13.23
Family
$ 405.95
382.97
$ 22.98
As you know, prior to this rate action Universal Care has not had a premium change since the
inception of their coverage on January 1, 1996. This is indeed rare in these times of high
medical inflation. Medical inflation is running at more than 1 % per month. Without exception,
the HMO industry are increasing their premiums at double digit rates. Kaiser, for example, who
owns its own hospitals, and its doctors and nurses are Kaiser employees, in 1998 increased its
rates by 11 % and this year by more than 15% in the greater Los Angeles area.
We are, needless to say, very pleased with this minimal rate action.
Should you have any questions, I will be very happy to answer them.
Sincerely,
Susan G. Church
Peter H. Cobo Insurance Agency, Inc.
-1P
SENT BY:ADMINISTRATION :12- 3-99 ; 3:06PPMM UNIVERSAL CARE- 209 599 0146:# 1/ 2
17
' �Univer9al Genre®
I +
Corp«rutt afficev �~
iboo East Kill Street
Qpul Hill, CA 90306-3684
w�a a„•6aat#
November22, 1999
Joan Franoont)
C1Ty OF VERNON
4305 Santa Fo AM
• Vernon, CA 90058
R2: 10010A
Dear Joan Frsncona:
Universal Care is mrintlited to providing affordable quality heahh cart to our members. We have
enjoyed pr riding such services to you, Company over the last yow. we need to inform you that upon
your anniveriary date with Universe! Care, you will receive a modest premiwn iaoreasa.
Your open enrollment period is dwinV the month of Deoembor for a renewal dolts of January 1, 2000-
The attaahod medieul rates are ef%otive Jaaurry 1, 2000, through Dmernber 31, 2000,
Univoreal Clara is pleased to provide health oars coverage to you and your emptoyae: and has
tiedic;atod itself to meeting your needs. We approciate your business and Will Continua to provide you
with the best possible serviac. Should you huve any questions, please cotst+►et Evelyn Norcross at
(800)635,-6669, Extension 4041,
9inc �t
,Mark Gunter.
(./ Director, Underwriting 3t Mees
CC: Evelyn Norcross / Ext, 4041
Peter H. C;.otx Ins,
Billing andEwollmcrtt
Enclosurca
•+�pww
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
Wm. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
DAVID B. BREARLEY
City Attorney
FAX: (626) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
CITY HALL BRUCE W. OLSON
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 Police Chief
TELEPHONE (323) 583-8811 FAX: (323) 583-5236
January 4, 2000
Universal Care
Attn: President
1600 E. Hill Street
Signal Hill, CA 90806
Dear Sir:
Enclosed is a copy of Resolution No. 7467 that was approved by
the Vernon City Council on December 21, 1999.
If you should have any questions, please refer them to our Risk
Manager Joan Francone at Ext. 322.
Very truly yours,
CITY O ERNUN
or -a J. 0 co
Chief Depu City Clerk
GJO:rcm
c: Joan Francone, Risk Manager