HomeMy WebLinkAbout115-02 RESOLUTION No. 115-02
A RESOLUTION OF THE CITY COUNCIL
OF THE TOWN OF LOS ALTOS HILLS FIXING THE
EMPLOYER'S CONTRIBUTION OF HEALTH CARE
PREMIUM UNDER THE PUBLIC EMPLOYEES'
MEDICAL AND HOSPITAL CARE ACT
WHEREAS, Government Code Section 22825.6 provides that a local
agency contracting under the Public Employees' Medical and Hospital Care Act
shall fix the amount of the employer's contribution at an amount not less then the
amount required under Section 22825 of the Act, and
WHEREAS, the Town of Los Altos Hills is'a local agency contracting
under the Act; and
WHEREAS, the Town desires to set a cap of employer contribution at the
average premium of all plans available to Town employees;
NOW THEREFORE BE IT RESOLVED that the employer's
contribution for each employee or annuitant shall be the amount necessary to pay
the full cost of his/her enrollment, including the enrollment of family members, in
a health benefits plan or plans up to a monthly maximum of$377.00 with respect
to employees or annuitants enrolled for self alone, $754.00 for an employee or
annuitant enrolled for self and one family member, and$980.00 for an employee
or annuitant enrolled for self and two or more family members, plus
administrative fees and Contingency Reserve Fund assessments.
REGULARLY PASSED AND ADOPTED this 19th day of December,
2002.
By: •
Mayor
ATTEST:
-
Cit IROF
•
TOWN OF LOS ALTOS HILLS
Staff Report to the City Council December 19, 2002
RE: Request for Amendment of Maximum Contribution to Employee Health
Coverage Premiums
FROM: Sarah Joiner, Administrative Services Director /1G7,,,,,2•,/
APPROVED: Maureen Cassingham, City Manager ('/\-t/
RECOMMENDATION: That the City Council approve the attached resolution which
establishes new premium caps to apply to the cost of health insurance plans offered to Town
employees for the.California Public Employees Retirement System (Ca1PERS) 2003 health
benefit year.
BACKGROUND: Each year staff reports to the Council the rates for employee health
benefits offered through Ca1PERS. Annual health insurance premiums are reviewed for the
purpose of establishing new caps—the maximum Town contribution towards each employee's
premium—for the calendar year. In January, 2002 the annual calculation of these caps was
revised and set at 110% of the average of the premiums of health plans available to
employees. Utilizing this methodology, the new caps would be established as shown below:
2002 2003
Cap
Employee/Retiree Only 269 377
Employee & 1 Dependent 538 754
Employee &2+Dependents 699 980
Increases in the Town's health insurance premium caps are indicative of substantial increases
in health plan premiums throughout the nation. It should be noted that the premiums paid by
the Town on behalf of its employees in 2003,based on employee enrollment selections, will
average$268, $526, and$694 for employees, employees with one dependent, and employees
with two or more employees respectively. This represents a 23% increase over calendar year
2002 premiums.
attachment: Resolution Fixing the Employer's Contribution of Health Care
Premium