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HomeMy WebLinkAbout83-03 OrdinanceRECORD OF ORDINANCES Blank,lnc. Ordinance No. 83-03 Passed 20 AN ORDINANCE AMENDING SECTION 10 ("MEDICAL, DENTAL, VISION, AND LIFE INSURANCE") OF ORDINANCE N0.98-96 (COMPENSATION PLAN FOR NON-UNION PERSONNEL). WHEREAS, Council has directed the Administrative Committee to conduct a study of the City's medical benefits program and provide recommendations to Council regarding changes to the program; and WHEREAS, the Administrative Committee has completed the study and presented recommendations to Council regarding changes to the City's medical benefits programs; and WHEREAS, Council has determined that Section 10 ("MEDICAL, DENTAL, VISION, AND LIFE INSURANCE"), paragraph A of Ordinance No. 98-96 (Compensation Plan for non-union personnel) should be amended to adopt the recommendations of the Administrative Committee; and WHEREAS, Council has determined that Section 10 ("MEDICAL, DENTAL, VISION, AND LIFE INSURANCE"), paragraph B of Ordinance No. 98-96 (Compensation Plan for non-union personnel) should be amended for "housekeeping" purposes; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, ~ of the elected members concurring: Section 1. That Section 10 ("MEDICAL, DENTAL, VISION, AND LIFE INSURANCE"), paragraph A be amended by deleting the language contained therein and replacing it with the following: A. The City shall make available group medical, prescription drug, dental, and vision benefits to employees serving in Full-Time Permanent positions and their dependents and to all Council Members and dependents in accordance with the City's current Master Plan Document. However, the City's Master Plan Document shall be amended to reflect the following medical plan design changes: Prescription Drug Plan Effective January 1, 2004, the co-payment for brand name drugs obtained at the retail pharmacy shall be increased from $15.00 to $20.00 and effective January 1, 2005 the co-payment shall be increased to $25.00. Should no generic drug be available, or should the employee's doctor prescribe a brand name drug under "dispense as written" instructions, the employee shall only be required to pay the generic co-payment. Effective January 1, 2005, the co-payment for generic drugs obtained at the retail pharmacy shall be increased to $10.00. (The current co-payment of $8.00 for generic drugs obtained at the retail pharmacy shall be maintained during 2004.) Effective January 1, 2004, the co-payment for athree-month supply of generic drugs obtained through mail order shall be increased from the current co- payment of $1.00 to $5.00; effective January 1, 2005, this co-payment shall be increased to $10.00; and effective January 1, 2006, this co-payment shall be increased to $15.00. RECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 Ordinance No. 83-03 _ Passed Page 2 . 20. Effective January 1, 2004, the co-payment for athree-month supply of brand name drugs obtained through mail order shall be increased from $1.00 to $10.00; effective January 1, 2005, this co-payment shall be increased to $20.00; and effective January 1, 2006, this co-payment shall be increased to $30.00. Should no generic drug be available, or should the employee's doctor prescribe a brand name drug under "dispense as written" instructions, the employee shall only be required to pay the generic co-payment. Co-Insurance Provision Effective January 1, 2004, an 80/20 Co-Insurance Provision (Plan pays 80%, plan member pays 20%) shall be implemented for "out-of-network" general medical services. (The current 90/10 Co-Insurance provision shall be retained for "in- network" services.) Effective January 1, 2004, the coverage level for "in-network" diagnostic testing, x-rays, and lab work shall be improved by changing the Co-Insurance from the current 80/20 to 90/10. (The current 80/20 Co-Insurance for diagnostic testing, x- rays, and lab work shall be retained for "out-of-network" diagnostic testing, x- rays, and lab work.) Out-of-Pocket Maximums Effective January 1, 2004 the following schedule of Out-of-Pocket Maximums for "in-network" and "out-of-network" services shall be implemented: OUT-OF-POCKET MAXIMUMS IN-NETWORK Year Sin le Covera e Famil Covera e 1-1-04 $500 $750 1-1-OS $500 $1,000 OUT-OF-NETWORK Year Sin le Covera e Famil Covera e 1-1-04 $500 $750 1-1-OS $750 $1,250 1-1-06 $1,000 $1,500 The annual Out-of-Pocket Maximum can be reached by a family in two ways. Should any one family member reach the single annual out-of-pocket amount under this schedule, his/her claims shall be paid at 100% from that point forward the remainder of the calendar year; or should all family members' out-of-pocket expenses combined reach the family annual maximum out-of-pocket amount, every family member's claims shall be paid at 100% from that point forward the remainder of the calendar year. RECORD OF ORDINANCES Blank,lnc. Ordinance No. 83-03 Passed Page 3 , 20 Section 2. That Section 10 ("MEDICAL, DENTAL, VISION, AND LIFE INSURANCE"), paragraph B be amended by deleting the language contained therein and replacing it with the following: B. All employees serving in Full-Time Permanent positions shall be entitled to group term life and accidental death and dismemberment insurance coverage in accordance with the City's Life lisurance Plan Document. Section 3. That this Ordinance shall take effect and be in force on the earliest date permitted by law. Passed this ~ ~"r~~3;~u-e~1.X~.~~/1~2003. Mayor -Presiding Officer ATTEST: ~ ~~,~t-- Clerk ofCouncil I hereby certify that copies of this Ordinance/Resolution were posted in the City of Dublin in accordance with Section 731.25 of the Ohio Revised Code. .~ Cl of Council, Dublin, Ohio Office of the City Manager 5200 Emerald Parkway, Dublin, Ohio 43017-1006 Phone: 614-410-4400 /Fax: 614-410-4490 Memo To: Members of Dublin City Council From: Jane S. Brautigam, City Manager.."c,.,.r.,~5 Date: July 16, 2003 Initiated By: David L. Harding, Director of Human Resources Re: Amendments to the Compensation Plan for Non-Union Personnel -Administrative Committee Recommendations SUMMARY: During the July 7, 2003 Council Meeting, the Administrative Committee presented its recommendations regarding changes to the City Medical Benefits Plan. As discussed during the presentation, Staff has prepared the attached legislation amending Section 10 ("MEDICAL, DENTAL, VISION, AND LIFE INSURANCE") of the Compensation Plan (Ordinance No. 98-96) to reflect the medical plan design changes recommended by the Administrative Committee. As mentioned in the Administrative Committee's report, these plan design changes will only affect non- unionemployees at this time. Staff will attempt to negotiate similar plan design changes for union personnel during future union negotiations scheduled to begin in 2004 and 2005. The attached legislation also contains a "housekeeping" amendment to the Life Insurance paragraph under Section 10 of the Compensation Plan. Council will recall that via the 2003 Operating Budget, the Life Insurance program was modified to provide life insurance coverage for non-union personnel in the amount ofone-and-a-half (1.5) times each employee's annual base compensation/salary, with a minimum coverage level of $50,000 and a maximum coverage level of $150,000. The Life Insurance paragraph in Section 10 of the Compensation Plan should be amended to delete the old coverage language referring to $50,000 in coverage for each employee. RECOMMENDATION: Staff recommends adoption of Ordinance No. 83-03. Attachment