HomeMy WebLinkAbout03.d. Receive update on employee benefits for Fiscal Year 2019-20 plan year Page 1 of 5
Item 3.d.
CENTRAL SAN
Y-109-ITMEN ME
June 18, 2019
TO: ADMINISTRATION COMMITTEE
FROM: TEJI O'MALLEY HUMAN RESOURCES MANAGER
REVIEWED BY: ANN SASAKI, DEPUTY GENERAL MANAGER
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RECEIVE UPDATE ON EMPLOYEE BENEFITS FOR THE FISCAL YEAR
2019-20 PLAN YEAR
This memo is to provide information to the Administration Committee and Board of Directors regarding the
changes to employee benefits due to the completion of benefit renewal negotiations as well as the
transition to the CalPERS medical plans.
CURRENT BENEFITS
MEDICAL COVERAGE
The District offers three options for health coverage: Kaiser, Health Net HMO, and Health Net PPO.
Currently, Kaiser and Health Net HMO coverage is provided at no cost to the employees and their
dependents. Employees selecting the Health Net PPO plan pay the difference in premiums between the
PPO plan and the highest cost HMO plan. Employees who elect to waive District group medical coverage
upon evidence of coverage elsewhere receive a monthly District contribution to the Section 401(a) plan in
the amount of$400.00.
The table below reflects the current monthly premium rates. These premium amounts are for all active
employees as well as those retirees that have not yet reached age 65 when they are required to integrate
their medical coverage with Medicare.
FY 2018-19 Monthly Premium Rates
Kaiser HMO Health Net HMO Health Net PPO
Single $805.56 $1,488.34 $2,178.33
Dual $1,611.15 $2,973.67 $4,362.94
Family $2,279.77 $4,316.19 $6,316.03
DENTAL COVERAGE
Dental coverage is provided through Delta Dental at no cost to the employees and their dependents. The
table below reflects the current FY 2018-19 monthly premium rates.
June 18, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 60 of 67
Page 2 of 5
FY 2018-19 Monthly Premium Rates
Single $73.30
Dual $129.10
Family $205.10
ANCILLARY COVERAGE
Employee Assistance Program (EAP) coverage is provided through Managed Health Network (MHN) at
no cost to the employees and their dependents. Life, Accidental Death & Dismemberment (AD&D), and
Long-Term Disability (LTD) coverage are provided through the Hartford at no cost to Local 1 and MS/CG
members, as well as the Secretary of the District and the General Manager. The Management Group and
Unrepresented members pay for their Long-Term Disability insurance premium.
FY 2018-19 Monthly Premium Rates
MHN EAP Hartford Life Hartford Hartford Hartford LTD
AD&D Dependent Life
$3.72 $0.35 per$1,000 $0.026 per $0.37 per unit $0.32 per$100
$1,000
CHANGES TO BENEFITS FOR PLAN YEAR 2019-20
MEDICAL COVERAGE
Effective July 1, 2019, the District will be transitioning all active employees and retirees to the CalPERS
medical plans. Employees and retirees are eligible to choose any plan that is offered by CalPERS;
however, Central San will only pay 100 percent of the premium cost, up to the family rate, of the "core
plans". The core plans are Kaiser Permanente and HealthNet SmartCare. If a more expensive plan is
chosen, the employee or retiree will be required to pay the District the difference between the highest cost
core plan and the chosen plan. Attached is the 2019 Rate Sheet for all CalPERS plans and highlighted
are the premiums for the two core plans. CalPERS adopts any changes to their premium rates in late June
of every year to be effective January of the following year. Staff will present this information to the
Committee when it has been adopted by CalPERS.
As negotiations had already been completed with our current carriers and for comparative purposes only,
the table below reflects what the premium rate increases would have been had the District not transitioned
to CalPERS effective July 1, 2019.
Plan Rate Increases (%)
Kaiser 3.0%
Health Net HMO 14.5%
Health Net PPO 14.5%
Medicare Supplemental Plans 1.5%-7.8%
The rate adjustments would have resulted in an increase of approximately$938,633 in annual costs for
employee and retiree medical benefits.
ALL OTHER EMPLOYEE BENEFITS (NON-MEDICAL)
All other benefits will still be administered by the District, including the newly implemented Vision plans
through VSP. Human Resources has concluded negotiations with these carriers for the rates that will go
into effect July 1, 2019 as outlined below.
June 18, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 61 of 67
Page 3 of 5
Delta Dental premium rates will decrease by 7.4%, representing an annual cost savings of approximately
$68,229. The table below reflects the FY 2019-20 premium rates.
FY 2019-20 Monthly Premium Rates
Single $67.90
Dual $119.50
Family $189.90
The Vision Plan through VSP will be implemented as of July 1, 2019 and the premium rates are detailed
below.
FY 2019-20 Monthly Premium Rates
Active Employees Retirees
Single $6.70 $7.70
Dual $11.60 $13.60
Family $17.70 $15.70
Preliminary negotiations with Hartford indicated that the rates would significantly increase for both the
Life/AD&D and LTD plans, 10.7% and 28.1% respectively. Due to the significant increase, the District
marketed the plans to six different carriers and was able to contract with Voya as the new carrier with a rate
decrease of 10.2% from our current premiums. This reflects an annual savings of approximately$20,460.
There was no rate change for MHN EAP.
FY 2018-19 Monthly Premium Rates
MHN EAP Voya Life Voya AD&D Voya Dependent Voya LTD
Life
$3.72 $0.315 per $0.026 per $0.37 per unit $0.287 per
$1,000 $1,000 $100
Staff will be available to answer any questions or provide clarification during the meeting.
ATTACHMENTS:
1. CalPERS Premium Rates (2019)
June 18, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 62 of 67
Page 4 of 5
7/30/2018
CalPERS 2019 Monthly Premiums for Contracting Agencies
Bay Area Region
Alameda, Amador, Contra Costa, Marin, Napa, Nevada, San Francisco, San Joaquin,
San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, Sutter, Yuba
Actives and Annuitants
Effective Date: 1/1/2019 - 12/31/2019
Basic Monthly Rate (B
PLAN Employee711anCodeq Employee& Party Employee& Party
Plan Code Plan CodeOnly 1 Dependent Rate 2+Dependents Rate
Anthem HMO Select $831.44 454 1 1 $1,662.88 454 2 2 $2,161.74 454 3 3
Anthem HMO Traditional 1,111.13 450 1 1 2,222.26 450 2 2 2,888.94 450 3 3
BSC Access+ 970.90 102 1 1 1,941.80 102 2 2 2,524.34 102 3 3
HealthNetSmartCare 901.55 375 1 1 1,803.10 375 2 2 2,344.03 375 3 3
Kaiser Permanente 768.25 104 1 1 1,536.50 104 2 2 1,997.45 104 3 3
PERS Choice 866.27 106 1 1 1,732.54 106 2 2 2,252.30 106 31 3
PERS Select 543.19 126 1 1 1,086.38 126 21 2 1 1,412.29 126 3 3
PERSCare 1,131.68 122 1 1 2,263.36 122 2 2 2,942.37 122 3 3
PORAC 774.00 207 1 1 1,623.00 2072 2 1 2,076.00 2073 3
Western Health Advantage 767.01 179 1 1 1,534.02 179 2 2 1,994.23 179 3 3
Supplement/Managed Medicare Monthl Rate M
PLAN Employee Plan Code Party Employee& Plan Code Party Employee& Plan Code Party
Only Rate 1 Dependent Rate 2+Dependents Rate
Anthem Medicare Preferred $357.44 276 1 4 $714.88 276 2 5 $1,072.32 276 3 6
Health Only
Anthem Medicare Preferred' 357.44 167 1 4 714.88 167 2 5 1,072.32 167 3 6
Health/Dental/Vision
Kaiser Senior Adv 323.74 114 1 4 647.48 114 2 5 971.22 114 3 6
Kaiser Senior Adv/Denta12 323.74 490 1 4 647.48 490 2 5 971.22 490 3 6-
PIERS Choice Med Supp 360.41 116 1 4 720.82 116 2 5 1,081.23 116 3 6
PERS Select Med Supp 360.41 136 1 4 720.82 136 2 5 1,081.23 136 3 6
PERSCare Med Supp 394.83 132 1 4 789.66 132 2 5 1,184.49 132 3 6
PORAC Med Supp 513.00 208 1 4 1,022.00 208 2 5 1,635.00 208 3 6
United Healthcare 299.37 380 1 4 598.74 380 2 5 898.11 380 3 6
Grp Med Adv/PPO Health Only
United Healthcare3 299.37 381 1 4 598.74 381 2 5 898.11 381 3 6
Grp Med Adv/PPO Health/Dental/Vision
'Dental and Vision coverage is an additional$38.00 per member per month premium.You will be billed directly for this amount.
2Dental benefit is an additional$15.05 per member per month premium.You will be billed directly for this amount.
3Dental and Vision coverage is an additional$27.65 per member per month premium.You will be billed directly for this amount.
June 18, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 63 of 67
Page 5 of 5
7/30/2018
CalPERS 2019 Monthly Premiums for Contracting Agencies
Bay Area Region
Alameda, Amador, Contra Costa, Marin, Napa, Nevada, San Francisco, San Joaquin,
San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, Sutter, Yuba
Actives and Annuitants
Effective Date: 1/1/2019 - 12/31/2019
Combination onthly Rate
PLAN Employee in M&
Employee t M Party Employee in M Party Party
1 Dependent in B Plan Code Rate 2+Dependents in B Plan Code Rate 1 Dependent in M Plan Code Rate
1+Dependents in B
Anthem Traditional/ $1,468.57 390 4 7 $2,135.25 390 5 8 $1,381.56 390 6 9
Med Pref Health Only
Anthem Traditional'/ 1,468.57 234 4 7 2,135.25 234 5 8 1,381.56 234 6 9
Med Pref Health/Dental/Vision
Kaiser/Senior Adv 1,091.99 340 4 7 1,552.94 340 5 8 1,108.43 340 6 9
Kaiser/Senior Adv/Dental2 1,091.99 500 4 7 1,552.94 500 5 8 1,108.43 500 6 9
PERS Choice/Med Supp 1,226.68 345 4 71 1,746.44 345 51 8 1 1,240.58 345 6 9
PIERS Select/Med Supp 903.60 351 4 7 1,229.51 351 5 8 1 1,046.73 351 6 9
PERSCare/Med Supp 1,526.51 356 4 7 2,205.52 356 5 8 1,468.67 356 6 9
PORAC/Med Supp 1,362.00 158 4 7 1,815.00 158 5 8 1,475.00 158 6 9
Combination onthly Rate
PLAN Employee in B&
Employee in B Party Employee in B Party Party
1 Dependent in M Plan Code Rate 2+Dependents in M Plan Code Rate 1 Dependent i M Plan Code Rate
1+Dependents in B
Anthem Traditional/ $1,468.57 390 7 10 $1,826.01 390 8 11 $2,135.25 390 9 12
Med Pref Health Only
Anthem Traditional'/ 1,468.57 234 7 10 1,826.01 234 8 11 2,135.25 234 9 12
Med Pref Health/Dental/Vision
Kaiser/Senior Adv 1,091.99 340 7 10 1,415.73 340 8 11 1,552.94 340 9 12
Kaiser/Senior Adv/Denta12 1,091.99 500 7 10 1,415.73 500 8 11 1,552.94 500 9 12
PERS Choice/MedSupp 1,226.68 345 7 10 1,587.09 345 8 11 1,746.44 345 9 12
PIERS Select/Med Supp 903.60 351 7 10 1,264.01 351 8 11 1,229.51 351 91 12
PERSCare/Med Supp 1,526.51 356 7 10 1,921.34 356 81 11 1 2,205.52 356 91 12
PORAC/Med Supp 1,283.00 158 7 10 1,896.00 158 81 11 1 1,736.00 158 91 12
'Dental and Vision coverage is an additional$38.00 per member per month premium.You will be billed directly for this amount.
2Dental benefit is an additional$15.05 per member per month premium.You will be billed directly for this amount.
June 18, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 64 of 67