Resolution No. 2011-183RESOLUTION NO. 2011-183
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND RATIFYING THE ACTIONS TAKEN BY
THE RISK MANAGER IN ESTABLISHING AETNA HEALTH INC.
AND AETNA LIFE INSURANCE COMPANY INC. FOR HEALTH
CARE BENEFITS FOR RETIRED EMPLOYEES FOR THE
CALENDAR YEAR 2011 AND APPROVING THE RENEWAL OF
HEALTH CARE BENEFITS FOR RETIRED EMPLOYEES FOR THE
CALENDAR YEAR 2012 FROM AETNA LIFE INSURANCE
COMPANY
WHEREAS, on November 9, 2009, the City Council of the City
of Vernon adopted Resolution No. 10,097 approving the renewal of
health care benefits with Aetna Health Inc. and Aetna Life Insurance
Company Inc. for Health Maintenance Organization plan (HMO) and Open
Access Managed Choice POS (PPO) Plan (collectively, "Aetna") for
retired employees for the period of January 1, 2010 through
December 31, 2010 for a one (1) year term; and
WHEREAS, Risk Management renewed the health care benefits
with Aetna for the period of January 1, 2011 through December 31, 2011
for a one (1) year term for retired employees over 65 years of age at
an approximate cost of $222,816.24; and
WHEREAS, Aetna has advised the City of an average rate
increase of 2.8% in premium costs for health care benefits for retired
employees over 65 years of age at an approximate cost of $190,141.20
based on current enrollment figures; and
WHEREAS, there are less retirees anticipated in 2012 than
there were in 2011, thereby reflecting the lower overall costs; and
WHEREAS, Aetna has offered the City the Medicare 5 Special
Plan ("HMO"), the Medicare 90 ESA PPO Plan ("PPO") for the
period of January 1, 2012 through December 31, 2012, for a one (1)
year term; and
WHEREAS, the Risk Manager has requested that his actions in
obtaining health care benefits with Aetna for retired employees over
65 years of age for the period of January 1, 2011 through
December 31, 2011 be ratified; and
WHEREAS, the Risk Manager has recommended that the City
renew health care benefits for retired employees over 65 years of age
for the calendar year 2012 based on an approximate annual premium cost
o.f $114,994.32; and
WHEREAS, the City Council intends to renew the health
benefit plans for 2012 based upon the recommendations of the Risk
Manager.
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
ratifies the actions of the Risk Manager in obtaining health care
benefits with Aetna Life Insurance Company for 2011.
SECTION 3: The City Council of the City of Vernon hereby
approves the renewal for health care benefits with Aetna Life
Insurance Company for retired employees over 65 years of age.
SECTION 4: The City Council of the City of Vernon hereby
directs the City Administrator, or his designee, to take whatever
actions are deemed necessary or desirable for the purpose of
implementing and carrying out the purposes of this Resolution and the
transactions herein approved or authorized.
2
SECTION 5: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution, and
the City Clerk of the City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 1st day of November, 2011.
l (f 0A I
Name:
ATTEST:
Ana B rcia, Deputy City Clerk
Title: I / Mayor Pro-Tem
3
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Ana Barcia, Deputy City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 2011-183,
was duly passed, approved and adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Tuesday, November 1, 2011, and thereafter was duly signed by the Mayor
or Mayor Pro-Tem of the City of Vernon.
Executed this day of November, 2011, at Vernon, California.
(SEAL)
Ana Barcia, Deputy City Clerk
- 4 -
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: November 2, 2011
TO: Willard Yamaguchi, City Clerk/Risk Manager
FROM: Ana Barcia, City Clerk !P671
RE: Resolution No. 2011-183 - A Resolution of the City Council
of the City of Vernon Approving and Ratifying the Actions
Taken by the Risk Manager in Establishing Aetna Health Inc.
and Aetna Life Insurance Company Inc. for Health Care
Benefits for Retired Employees for the Calendar Year 2011
and Approving the Renewal of Health Care Benefits for
Retired Employees for the Calendar Year 2012 from Aetna Life
Insurance Company
Transmitted herewith is a copy of Resolution No. 2011-183 referenced
above, which was approved by City Council on November 1, 2011.
Thank you.
AB:d7
Attachment
c: Resolution No. 2011-183
Agreement No. 11-119
RECEIVED
OCT 2 6 2011
CITY CLERK'S OFFICE
DA: October 24, 2011
Staff Report
Risk Management
TO: Honorable Mayor and City Council
FR: Willard G. Yamaguchi, Risk Manager U I 1
RE: Health Benefits Renewal 2012
Retiree Aetna Medicare Plan
Medical Insurance 2011
2EO
RECEIVED
OCT 2 6 2011
CITY ADMINISTRATION
Due to inadvertence and/or mistake, Risk Management failed to submit a request to the Council for
approval of the 2011 medical insurance program for retirees.
Medical Insurance 2012
FIA Insurance (FIA), the City's insurance broker for medical benefits, solicited quotes from Aetna,
Vernon's current medical benefit provider, Health Net, Anthem Blue Cross, Blue Shield of California,
CIGNA, United Healthcare, and Kaiser. Quotes were received from Aetna and Health Net. All others
declined.
Upon review of said quotes, Risk Management recommends to renew the retiree Aetna Medicare Plan for
calendar year 2012 with Aetna, at an approximate cost of $190,141.20 based on our current enrollment
figures.
Aetna will be offering two different medical plans designs that retirees can choose from. They are the
Medicare 5 Special Plan (HMO) and the Medicare 90 ESA PPO Plan (PPO).
Per Resolution 2011-107, certain categories of retirees qualify for City paid medical premiums,
subsidized medical premiums or the retiree pays for the entire premium. The total cost of medical
premiums for retirees, for calendar year 2012, is approximately $114,994.32, which accounts for retiree
contributions pursuant to Resolution 2011-107. This number is based on Aetna's 2012 rates and our
current enrollment figures.
Fiscal Impact
Sufficient funds have been budgeted for this expenditure.
Recommendation
Risk Management recommends ratification of payment to Aetna for 2011 retiree medical premiums and
the renewal of the Aetna medical insurance benefit package for retirees at an approximate cost of
$114,994.32 for calendar year 2012.
WGY/kr
Enclosure
Juarez, Debbie
From: Juarez, Debbie
Sent: Wednesday, November 02, 2011 7:50 AM
To: Rueda, Kenna
Subject: RE: Aetna Medical and Aetna Dental and Lincoln National Life Insurance Policies Res. Nos.
2011-180, 2011-181, 2011-182, 2011-183
Ok, thanks. I will need copies of the communications for the file, please.
(De6orah Juarez
cords SYtanagementAssistant
City ofVtrnuu - City C.rerk's office
4305SantaTr gvenue
Vernon, CA 90058
(323) 583-8811
From: Rueda, Karina
Sent: Wednesday, November 02, 2011 7:49 AM
To: Juarez, Debbie
Subject: RE: Aetna Medical and Aetna Dental and Lincoln National Life Insurance Policies Res. Nos. 2011-180, 2011-181,
2011-182,2011-183
Yes, our brokers and Ins companies negotiated the renewals and the confirmation was either verbal or by e-mail
communication.
From: Juarez, Debbie
Sent: Wednesday, November 02, 2011 7:48 AM
To: Rueda, Karina
Subject: RE: Aetna Medical and Aetna Dental and Lincoln National Life Insurance Policies Res. Nos. 2011-180, 2011-181,
2011-182, 2011-183
Are they being handled by e-mail communication again?
(De6orah Juarez
4i cords Wanage ment AsAaa nt
O''ty of Onion - city Crerk's Office
4305 Santa Tc Avenue
'Veruou, (A 90058
(323) 583-8811
From: Rueda, Karina
Sent: Wednesday, November 02, 2011 7:46 AM
To: Juarez, Debbie
Subject: RE: Aetna Medical and Aetna Dental and Lincoln National Life Insurance Policies Res. Nos. 2011-180, 2011-181,
2011-182, 2011-183
No agreements.
From: Juarez, Debbie
Sent: Wednesday, November 02, 2011 7:46 AM
To: Rueda, Karina
Subject: Aetna Medical and Aetna Dental and Lincoln National Life Insurance Policies Res. Nos. 2011-180, 2011-181,
2011-182,2011-183
Hi Karina. Are there going to be actual agreements associated with these resolutions?
(De(orahjuarez
cords 911anagementAssistant
City of 'Vernon - City Cferk;s Office
4305 Santa Te A•uenue
'Vernon, CA 90058
(323) 583-8811
2 O7 /- /9'3
Juarez, Debbie
From:
Rueda, Karina
Sent:
Thursday, February 02, 2012 2:37 PM
To:
Juarez, Debbie
Subject:
FW: City of Vernon - Medical and Dental
Attachments:
1.1.2012 Current -Renewal- BLENDED and DMI Rates.pdf
From: Ellie Jones rmailto:ElligjCabfia-insurance.comI
Sent: Monday, January 30, 2012 10:02 AM
To: Rueda, Karina
Subject: FW: City of Vernon
This is my final email for medical and dental.
Thanks!
Ellie
From: Ellie Jones
Sent: Friday, October 21, 2011 1:53 PM
To: 'Radius, Robert'
Subject: RE: City of Vernon
Per Willard and Karina — medical plans are confirmed:
HSA 5 — HDHP —same as current plan — no changes
HMO High is the same as current with the exception of a $30 specialist —100% hospitalization.
Final Blended Rates — please see attached.
Thanks!
Ellie
Elizabeth Jones
Vice President
Manager - Employee Benefits
FIA Insurance Services, Inc.
Tel 626395-9298 - dircel
Fax 626-792-1130
Email elliei a@fm-insurance com
License N 0175794
From: Ellie Jones
Sent: Thursday, October 20, 2011 12:01 PM
To: 'Radius, Robert'
Cc: 'mikel@aetna.com'
Subject: City of Vernon
Importance: High
Hi Rob,
Dental Plan sold:
Flat Two Year Rate Guarantee
PPO
EE $57.37
EE+Spouse $122.51
EE+Child(ren) $116.49
EE+Family $189.76
DMO Plan 56
EE
$19.22
EE+Spouse
$36.51
EE+Child(ren)
$38.43
EE+Family
$54.77
Medical: Renewed
PPO — HDHP HSA 5 — BLENDED RATES
HMO HIGH $20 OV - $30 SPECIALIST —100% HOSPITAL
Vernon is asking for clear copy of the plan designs for 2012 with the new effective date of 1/1/2012 on the
document. They need this ASAP please.
Thankyoul
Ellie
Elizabeth Jones
Vice President
Manager - Employee Benefits
FIA Insurance Services, Inc.
Tel 626-395-9298 -direct
Fax 626-792-1130
Email elliei@fia-insurance.com
Licensc 4 0175794
CONFIDENTIALITY NOTICE: This E-mail (including attachments) is confidential and may be legally
privileged. It may contain information which is confidential or prohibited from any disclosure under the HIPAA
Privacy Rule, Cal-GLBA or other federal or state laws. It is intended to be conveyed only to the designated
recipient(s). If you are not the intended recipient, you are hereby notified that any retention, dissemination,
distribution, or copying of this communication is strictly prohibited. and that use, dissemination, distribution, or
reproduction of this message by unintended recipients is not authorized and may be unlawful. Please reply to
the sender if you have received the message in error and delete this e-mail, along with any attachments, from
your computer. Please note that any personal views or opinions presented in this email are solely those of the
author and do not necessarily represent those of the company. Thank you
This e-mail may contain confidential or privileged information. If you think you have received this e-mail in
error, please advise the sender by reply e-mail and then delete this e-mail immediately. Thank you. Aetna
CONFIDENTIALITY NOTICE: This E-mail (including attachments) is confidential and may be legally
privileged. It may contain information which is confidential or prohibited from any disclosure under the HIPAA
Privacy Rule, Cal-GLBA or other federal or state laws. It is intended to be conveyed only to the designated
recipient(s). If you are not the intended recipient, you are hereby notified that any retention, dissemination,
distribution, or copying of this communication is strictly prohibited. and that use, dissemination, distribution, or
reproduction of this message by unintended recipients is not authorized and may be unlawful. Please reply to
the sender if you have received the message in error and delete this e-mail, along with any attachments, from
your computer. Please note that any personal views or opinions presented in this email are solely those of the
author and do not necessarily represent those of the company. Thank you
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