Title
Subject: Direct Referral - Communication from the City Administrator submitting the Phase II of the Health Insurance Cost Containment Plan.
Recommendation: that the 2006 Health Insurance Cost Containment Plan, 2006 Healthcare Management Program Strategic Implementation Plan, be amended by deleting items 2, 3, and 4; item #1 replace "2005" with "2006";
and Items 1, 5, 6, 7, and 8 be implemented as Phase II.
1.) "True-up" based on contract settlements and arbitration rulings in 2006.
5.) Implementation of $100 for Emergency Room visits - Non-represented employees.
6.) Creation of a three-tiered drug program based on 20% for generic drugs, 30% for brand drugs
when no generic drug is available, and 50% for brand drugs when a generic drug is available -
Non-represented employees.
7.) Effective 01-01-06, new employees will not be provided any city retirement health benefits.
8.) Effective 01-01-06, two-family health insurance policies or combination of single and family are
prohibited. This would prohibit husband and wife from duplicating benefits.
Further recommends the 2006 Healthcare Management Program be adopted as amended.
Fiscal Note: This will result in savings of approximately $140,000.