Council Passes Insurance Plans
by Heather Worrell
The Black Hawk City Council met at the Council Chambers at 211 Church Street on May 13, 2015 for their regularly scheduled meeting. There was a special meeting that started at 1pm in executive session and was not open to the public before the regular meeting. The City Council met to “determine positions relative to matters that may be subject to negotiations, develop a strategy for negotiations, and/or instruct negotiators, pursuant to C.R.S. 24-6-402(4)(e).”
The regular meeting reconvened at 3:07 pm. Mayor Spellman and all Council Alderman were present. There were no agenda changes or conflicts of interest. There was also no public comment for any items on our outside the agenda. No public hearings took place and only a few action items were discussed and voted upon at the meeting. All the items were presented and explained by Melissa Greiner, the City Clerk and Administrative Services Director and in relation to benefits for the 85 employees and their 215 dependents. Greiner indicated that most of their benefit contracts all have a mid year renewal.
Contract with Kaiser Permanente
The first was Resolution 38-2015, A Resolution Approving the Contract with Kaiser Permanente in the Amount of $785,410. Greiner noted that Kaiser initially brought forward a renewal contract with a 9.15% increase in premium. The broker they work with took this coverage and premium amount to bid and received a lower quote from another carrier. Kaiser decided to match this quote to result in only a 2.34% increase from last year. The new plan will still allow a $5,000 credit for wellness programs. Greiner indicated that there have only been three complaints from the city in the last year, all of which have been resolved. Overall they receive very little negative feedback about Kaiser, but are displeased with their new account manager. Greiner told Council, “The main problem is the new account representative doesn’t understand the City of Black Hawk’s mission and goals.” The resolution was approved and passed unanimously. Alderman Linda Armbright commented, “You’ve done a great job trying to keep the fees down.”
Contract with Delta Dental
Next was Resolution 39-2015, A Resolution Approving the Contract with Delta Dental in the Amount of $105,661 for Dental Insurance. This amount includes a 9.5% increase so it was also sent out for bid. Four quotes were received with three being substantially higher than Delta Dental even with the increase. The final carrier, Guardian, was not recommended since it would significantly change and alter the network of dental providers available. This resolution was approved unanimously as well.
Proposal from CIGNA
Last was Resolution 40-2015, A Resolution Approving the Proposal from CIGNA for 2015-2017 Ancillary Coverage. This coverage is in relation to all the extra supplemental coverage, including, but not limited to: Group Life; Voluntary Life; AD&D; Short Term Disability; and Long Term Disability. The current carrier, Lincoln Financial Group, has cited an increase across their entire book of business. These plans were also taken to market to find more bids and CIGNA responded with a quote that provides virtually the same coverage, but provides a 6.5% savings compared to Lincoln Financial Group. The request to leave Lincoln Financial Group was not just due to premium increases, but also the way they’ve administratively been handling their business with the City has been very poor. Greiner noted, “They are not administratively managing their plans well. We increased the limits on how much they pay and they recently paid a claim based on a prior contract. I have worked with CIGNA in the past and have been pleased with their service.” The resolution was passed unanimously as well.
These three action items concluded all business for the council to hear on May 13th. There were no reports from the City Manager or City Attorney. There was no additional executive session and the meeting was adjourned at 3:17 pm.