Minutes

Board of Aldermen 3-31-2020 Page 29

Larry Budreau, Human Resources Director

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impression they are tweaked by the Union or they can be? | mean it is negotiated so they may be slightly
different from one Union to another.

Kim Kleiner, Admin. Services Director

| think the confusion is that the proposed healthcare plan design that is proposed this evening is for
unaffiliated employees that has to be negotiated into any Union agreement going forward with our 17 Unions.
So their HMO would remain the same unless the Union agreed to negotiate that change.

Alderwoman Lu

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President Wilshire
That is an Explanation of Benefits.
Alderwoman Lu

OK. Great. So that’s something that you receive to explain how much you owe and how the City picked up,
correct?

President Wilshire
Correct.
Alderwoman Lu

Thank you. On the invitation that was sent to the members of the Unaffiliated Group, it was sent out on
March 9". What date were they invited to come and learn about this proposal?

Kim Kleiner, Admin. Services Director

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next year. Is that the end of it or does it continue to carry over year after year.

Larry Budreau, Human Resources Director

Sorry Director Kleiner, it is not the end of it. It carries over year after year and when you retire or resign it
becomes your money the instant you first get that $3,000.00 and it continues year after year when you retire
or you resign, you take that with you.

Alderman Harriott-Gathright

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Larry Budreau, Human Resources Director

Our plan year runs from July to the following June so immediately upon signing up effective July 1* you get
the first $1,500.00 the next day and then the second $1,500.00 would come on October 1* unless you
needed it before that in which case we would provide it when you needed it. Does that answer the question?
Alderman Cleaver

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the HMO in let’s say August of this coming year, and | have to pay the whole amount of money for my
deductible, let’s say it is $3,000.00. How much of that is the City going to pay?

Kim Kleiner, Admin. Services Director

So Alderman Clemons if you are on that HMO currently, and you ...

Kim Kleiner, Admin. Services Director

In August? If you are hospitalized in August then you are going to run into that $3,000.00 deductible.
Alderman Clemons
And how much is the City going to pay?

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Alderman Clemons

However, the City is going to give a health savings account to anyone with the HMO of $1,500.00 and
$3,000.00?

Kim Kleiner, Admin. Services Director

With the HSA yes. With the HSA we give the contribution, the Health Savings Account.
Alderman Clemons

Ok so this is where | am confused; so if you have the HMO you aren’t paying that, we are not giving you a
health savings account is that correct?

Larry Budreau, Human Resources Director

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the negotiated rate. So you continue to get, even though you are on the high deductible plan, you continue to
get the negotiated rate that Anthem has with either the pharmacy on the medical drug or the doctor on the
provider rate.

Alderman Clemons

Ok thank you. So overall on a month to month basis, you know the cost that comes out of the employee’s
paycheck, | am thinking that you explained it, the high deductible is less?

Kim Kleiner, Admin. Services Director