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HomeMy WebLinkAboutR-83-01014 1%, J-83-41 rr RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS, SUBJECT TO THE CITY ATTORNEY'S APPROVAL AS TO FORM AND CORRECTNESS, WITH INA HEALTH PLAN, INTERNATIONAL MEDICAL CENTERS HMO, AND SOUTH FLORIDA GROUP HEALTH, INC., WHICH PROVIDE ALTERNATIVE GROUP HEALTH BENEFITS TO CITY EMPLOYEES ON THE SAME BASIS AS CURRENT GROUP HEALTH BENEFITS OFFERED BY THE CITY. WHEREAS, the Federal Health Maintenance Organization Act requires all employers with more than 25 employees to offer its employees the option of membership in qualified health maintenance organizations; and WHEREAS, five federally qualified health maintenance organizations expressed an interest in being offered to City of Miami employees and submitted proposals for health benefits as required by the Federal Health Maintenance Organization Act; and WHEREAS, a committee, consisting of the president of each employee bargaining unit and representatives of the nonunionized employees, was formed to evaluate the proposals; and WHEREAS, after full review of the qualifications of each health maintenance organization and upon the recommendations of the representatives of each employee bargaining unit, the following three health maintenance organizations were found to be the best qualified: and INA Health Plan South Florida Group Health, Inc. International Medical Centers HMO; WHEREAS, the representatives of the Fraternal Order of Police and the International Association of Fire Fighters Bargarning Units requested that membership in any health maintenance organization not be offered to their members; and CITY COMMISSION MEETING OF F E B 10 1983 REMUMN ho. 8271DJ REMAM .........»«..«...»...... 4 WHEREAS, the representatives of the Sanitation Employees Association requested that only membership in International Medical Centers HMO be offered to its members; and WHEREAS, the American Federation of State, County and Municipal Employees representatives requested that only membership in International Medical Centers HMO and South Florida Group Health, Inc. be offered to its members; and WHEREAS, the representatives of the nonunionized employees requested that membership in INA Health Plan and South Florida Group Health, Inc. be offered to nonunionized employees of the City; and WHEREAS, it is in the best interest of the City to better service its employees by the offering of alternative health care plans; and WHEREAS, the City Manager recommends approval of these offerings; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLOIRDA: Section 1. The City Manager is hereby authorized to execute agreements, subject to the City Attorney's approval as to form and correctness, with INA Health Plan, International Medical Centers HMO, and South Florida Group Health, Inc. which provide for alternative group health benefits to City of Miami employees on the same basis as the current group health benefits offered City employees under the group health benefits plan of the City of Miami. PASSED AND ADOPTED this loth day of February, 1983. T: LPH G. ONGIE, CITY CLERK' -2- Maurice A. Ferre MAURICE A. FERRE M A Y O R 83-101 o' PREPARED AND APPROVED BY: ��VY. JOIRGE . FERNANDEZ ASSIS ANT C14Y ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: d � O E R. GARCIA-PEDROSA ITY ATTORNEY -3- 83-10y CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM TO Howard V. Gary City Manager FROM Dean R. Mielk Labor Relation Officer DATE. January 25, 1983 FILE 3UsJECT. Agenda Item REFERENCES ENCLOSURES It is recommended that the attached resolution be approved to permit the City Manager to execute agreements with INA Health Plan, International Medical Centers, HMO, South Florida Group Health, Inc., for providing alternative health care benefits to City employees on the same basis as the current group health benefits plan of the City of Miami. The Federal Health Maintenance Organization Act, requires employers to include in any health benefit plan offered to employees, the option of a health maintenance organization membership in a quali- fied health maintenance organization engaged in providing health services in areas in which at least 25 employees of the employer reside. The Act additionally requires employers who are subject to collective bargaining process must first offer the health main- tenance organization to the bargaining representatives. If the bargaining representatives accept the offering, then the employer must offer the health maintenance organization membership to each employee represented by that bargaining unit. There are five federally -qualified health maintenance organizations providing services in the areas where at least 25 employees of the City of Miami reside; and each of these five health maintenance organizations submitted proposals providing health benefits to the City. The Av-Med Health Plan; CAC Health Plan, HMO; INA Health Plant International Medical Centers,HMO; and South Florida Group Health, Inc., were the five HMO's submitting proposals. The proposals of each HMO were presented to a committee consisting of the Frt--sident of each bargaining union, representing City employ- ees, and representatives from the Labor Relations office, and the Risk Management division of the Finance Department. Representatives of each health maintenance organization met with this group and made formal presentations. Several meetings between the group and the 83-101 health maintenance organizations were held between July 24, 1981 , to date. The last formal meeting of the entire group occurred on February 8, 1982. On May 20, 1982 the President of the Fraternal Order of Police notified the Labor Relations office that it was the desire of his bargaining unit that no health maintenance organ- ization option be included in the health benefits program for employees represented by that bargaining unit. On June 14, 1982, the President of the International Association of Fire Fighters notified the Labor Relations Office that it was the desire of his bargaining unit that no HMO option be included in the health benefits program for employees represented by that bargaining unit. On September 27, 1982, the President of the Sanitation Employees Association notified the Labor Relations Officer that it was the de- sire of his bargaining unit that only the International Medical Centers, HMO be included in the health benefits plan for members of that bar- gaining unit. On October 20, 1982, the President of the American Federation of State, County and Municipal Employees notified the Labor Relations Office that it was the desire of his bargaining unit that only I:�e�natioi,al Medical Centers, HMO, and South Florida Group Health, Inc -,be included in the health benefits plan of his bargaining unit. The representatives of the non -unionized employees' selection committee, after review of the qualifications, felt that INA Health Plan and South Florida Group Health, Inc..should be included as a health care option in the group benefits plan for employees in that group. The cost of health maintenance organizations will be from the same funds that present health care benefits are paid from; the group health benefits section of the Self -Insurance Fund. The City and employees will contribute jointly to the plans on the same basis as specified in their existing labor agreements. The approach to providing health care benefits utilized by the HMO's is an attempt to provide for more effective utilization and delivery of health care. Considering that the cost of providing conventional health care benefits is rising rapidly (19% to 22% per year), the health maintenance organization presents an attempt to control costs without reducing the level of health care benefits provided to our employees. The inclusion of the health maintenance organization mem- bership option in our health care plans accordingly is in the best interest of the City,and will allow the City to better service the employee. cc: Jose R. Garcia -Pedrosa City Attorney 83-101' _. Ad