Title
AN ORDINANCE APPROVING THE CALENDAR YEAR 2017 EMPLOYEE BENEFIT PROGRAMS, APPROVING AGREEMENTS FOR SERVICES BY AND BETWEEN THE CITY OF LEE'S SUMMIT, MISSOURI AND BLUE CROSS BLUE SHIELD OF KANSAS CITY, DELTA DENTAL OF MISSOURI, VSP VISION, NEW DIRECTIONS, AND THE STANDARD FOR THE PROVISION OF EMPLOYEE BENEFITS, AND AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS FOR THE SAME.
Body
Issue/Request:
AN ORDINANCE APPROVING THE CALENDAR YEAR 2017 EMPLOYEE BENEFIT PROGRAMS, APPROVING AGREEMENTS FOR SERVICES BY AND BETWEEN THE CITY OF LEE'S SUMMIT, MISSOURI AND BLUE CROSS BLUE SHIELD OF KANSAS CITY, DELTA DENTAL OF MISSOURI, VSP VISION, NEW DIRECTIONS, AND THE STANDARD FOR THE PROVISION OF EMPLOYEE BENEFITS, AND AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS FOR THE SAME.
Key Issues:
The City originally entered into agreements with the listed service providers in December, 2014 for the provision of various employee health and welfare benefits under RFP 2014-121, to begin January 1, 2015. Each agreement was for a term of one (1) year with the possibility of two (2) additional renewals for coverage. Agreements to secure coverage for calendar year 2017 will be the final available renewal under the current contracts.
* The City's Group Health Insurance Plan rates through Blue Cross and Blue Shield Of KC will expire on December 31, 2016 and a new benefit and rate confirmation must be approved to continue employee health coverage. A cost-plus addendum is also included, which outlines the payment arrangement between Blue Cross and Blue Shield of Kansas City and the City of Lee's Summit.
* The renewal for health premiums (Blue Cross and Blue Shield of KC) for the year 2017 resulted in an annual increase of 6.5%, far below the budgeted amount of 10%.
* Blue Cross and Blue Shield of KC will continue to fund $35,000 towards the City's Wellness Program
* No increase in premiums for the VSP (vision plan) for 2017. The plan provides an increase in the eyeglass ...
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