HomeMy WebLinkAbout2019 Resolution No. 069RESOLUTION NO. 69
SERIES OF 2019
A RESOLUTION ACCEPTING A LETTER AGREEMENT WITH KAISER
FOUNDATION HEAL TH PLAN OF COLORADO.
WHEREAS, Health care benefits are a key component of the City's total employee
compensation package and are essential to attract and retain the most talented and dedicated
employees;
WHEREAS, Proposals for provision of health insurance benefits were solicited in 2019, and
after lengthy negotiations, staff determined that Kaiser Permanente [Kaiser], through the Kaiser
Foundation Health Plan of Colorado, offered the best combination of sustainable cost and high
quality health care services through a three-year commitment, with a flat 6% increase in year 2,
and an increase not to exceed 7% in year 3;
WHEREAS, Kaiser s proposal also provides for an implementation credit of $650,000 over
three years, further reducing the City's expense· and
WHEREAS, The City Council approved a budget on October 21, 2019 allowing for
expenditures for employee benefits in alignment with the proposal offered by Kaiser.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, AS FOLLOWS:
Section I. The Englewood City Council hereby accepts the Letter Agreement with Kaiser
Foundation Health Plan of Colorado, as attached hereto and incorporated herein.
ADOPTED AND APPROVED this 2nd day of December, 2019.
ATTEST:
I, Stephanie Carlile, City Clerk for the City of Englewood, Colorado, hereby certify the above
is a true copy of Resolution No. 69, Series of 2019.
arli le, City Clerk
October 28, 2019
Dorothy Hargrove
Deputy City Manager
City of Englewood
1000 Englewood Parkway
Englewood, CO 80110
Re: Letter of Agreement between City of Englewood (Group #47507) and Kaiser Foundation
Health Plan of Colorado
Dear Dorothy:
This Letter of Agreement serves as an addendum to the Group Agreement between City of Englewood
("Group") and Kaiser Foundation Health Plan of Colorado, effective for the contract years beginning
January 1, 2020, January 1, 2021 and January!, 2022. The following provisions apply to and shall upon
execution of this document be fully incorporated into the Group Agreements for contract years 2020,
2021 and 2022:
Proposal Package
Enclosed is the proposal package for Group. It includes a total transition credit of $650,000. The credit
will be distributed over three years. The group will receive a $218,000 credit in January 2020, $216,000
credit in January 2021, and the final $216,000 credit in January 2022.
In addition, we are pleased to offer Group a Multi-Year Rate Guarantee (MYRG). The proposed rates
with the MYRG and offering conditions for the January 1, 2020-December 31, 2022 contract year are
shown below:
DHMO$500 $584.39 $619.45
$1,285.66 $1,362.80 Ded/ 10% Coin E +2 or more $1,928.49 $2,044.20
HDHP$2800 E $486.62 $515.82 Not to Exceed 7%
$1,070.56 $1,134.79 Ded/0% Coin E +2 or more $1,605.85 $1,702.20
E $692.77 $734.33 Not to Exceed 7%
POSP!an E $1,524.08 $1,615.52
$2,286.12 $2,423.29
MYRG offering conditions and assumptions:
1. The MYRG cap applies to the current plans and any possible alternates offered.
2. The MYRG reflects an increase of 6% for the 2021 renewal and a possible maximum of 7% for
2022 (for 2022 should actual calculations generate less than the 7%, the calculated renewal will
be applied.)
3. Any change in rate structure, eligibility requirements, contribution strategy, or anniversary date
during the contract period needs to be discussed with Kaiser Permanente. The intent is to discuss
how the changes will impact future renewals.
4. There can be no material change in the demographic factor. (Material is defined as a I 0%
change).
. There can be no material change in the location(s). (Material is defined by the company moving
and it affects 10% or more of the population.)
6. Kaiser Permanente will be sole carrier.
7. All offering conditions and assumptions outlined on the Assumptions Page attached to the 2020
proposal package.
8. Impact of any State or Federal benefit mandates are precluded from this rate guarantee and will
be considered separate from this offering.
9. Our proposed rate guarantee assumes the federal Health Insurance Provider (HIP) fee will be
reinstated as of January 1, 2020 (the fee was suspended by the federal government for calendar
year 2019). If the HIP fee is suspended again for 2020 ( or future years as applicable) our
proposed rate guarantee will be revised downward accordingly.
We look forward to continuing our relationship with Group in the years to come. If you have any
questions, I can be reached directly at 303-957-6679.
To confirm your acceptance of the tenns of this letter, please sign and date a copy of this letter.
Regards,
Matt Kirkland
X
{/ Cory Foreman
City of Englewood City Representative Vice President, CMSBD