HomeMy WebLinkAboutResolution 109-1996 �, . ► ,
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RESOLUTION NO. 109-96
RESOLUTION APPROVING HEALTH INSURANCE PROGRAM
WHEREAS an examination has been made of the City's health insurance program by the
Sega1 Company, an insurance consulting company from Englewood, Colorado; and
WI-�REAS said examination identified the costs of the current program in relation to
other alternatives; and
WHEREAS it has been found that cost savings can be realized by changing from a fully
insured program to a self-funded program; and
WHEREAS the City has realized benefits by maintaining a common insurance program for
City General and Municipal Utility employees; and
WHEREAS it is the desire of the City Commission to continue this relationship with the
Utility to the extent permissible under a self-funded arrangement; and
WHEREAS a self-funded program requires the City Commission and the Utility Board to
make certain decisions, particularly with respect to reserve levels and City General
employee/employer contribution rates; and
WHEREAS it is desired that the City Commission and the Utility Board each be allowed
to establish their own reserve levels and employee/employer contribution rates.
NOW, THEREFORE, BE IT RESOLVED by the Brookings City Commission that the
self-funding health insurance program as presented in the analysis of proposals prepared by the
Segal Company dated November 18, 1996, be hereby approved.
BE IT FURTHER RESOLVED that the Brookings City Commission establish its own
health insurance reserve fund and that monies be transferred into said fund according to prudent
fiscal policy.
BE IT FURTHER RESOLVED for purposes of establishing City General
employee/employer contribution rates under the health insurance program, it is hereby established
that the following costs be authorized for inclusion in the rate setting computation:
Administrative Services
Utilization Review
Individual Stop Loss
Aggregate Stop Loss
Expected Claims (Including Attachment Point
computed as 125% of Expected Claims)
Appropriate Reserve
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BE IT FURTHER RESOLVED that the health insurance program costs be identified on
the basis of common costs and individual costs identified as follows:
City General shall be responsible for common costs apportioned on the basis of equitable
actuarial standards. Such costs are hereby defined to include the following costs:
Administrative Services
Utilization Review
Individual Stop Loss
Aggregate Stop Loss
City General sha11 be responsible for individual costs on the basis of actual claims made by
City General employees. Such costs are hereby defined to include the following costs:
Expected Claims (Including Attachment Point
computed as 125% of Expected Claims)
Appropriate Reserve
Passed and approved this 26th day of November, 1996.
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