AGENDA
MCFARLAND CITY COUNCIL
MCFARLAND SUCCESSOR AGENCY
MCFARLAND PUBLIC FINANCE AUTHORITY
MCFARLAND IMPROVEMENT AUTHORITY
MCFARLAND PARKING AUTHORITY
SPECIAL MEETING
CITY COUNCIL CHAMBERS December 1, 2022
103 W. SHERWOOD AVE, MCFARLAND, CA 4:30 PM
In Person Meeting
How to submit public comments:
The meetings of the City Council and all municipal entities, commissions, and boards (“the City”) are open to the public. At regularly scheduled meetings, members of the public may address the city on any item listed on the agenda, or on any non-listed matter over which the city has jurisdiction. At special or emergency meetings, members of the public may only address the city on items listed on the agenda.
There is a time limitation of two minutes per person. For any item that is not on the agenda and within the jurisdiction or interest of the city, please come to the podium at this time. The Brown Act does not permit any action or discussion on items not listed on the agenda. If you wish to speak regarding a scheduled agenda item, please come to the podium when the item number and subject matter are announced, and the mayor opens Public Comment on the item. When recognized, please begin by providing your name and address for the record (optional). Anyone wishing to submit written information at the meeting needs to furnish ten (10) copies to the City Clerk in advance to allow for distribution to City Council, staff, and the media. Willful disruption of the meeting shall not be permitted. If the Mayor finds that there is in fact willful disruption of any City Council Meeting, he/she may order the disrupting parties out of the room and subsequently conduct the City’s business without them present.
Americans with Disabilities Act:
In compliance with the ADA, if you need special assistance to participate in a city meeting or other services offered by the City, please contact the City Clerk’s office, at (661) 792-3091 ext. 2135.
Notification of at least 2 hours prior to the meeting, or time when services are needed, will assist the city staff in assuring those reasonable arrangements can be made to provide accessibility to the meeting or services.
CALL TO ORDER: Mayor Sally Tafoya
ROLL CALL:
Mayor, Sally Tafoya
Mayor Pro Tem, María T. Pérez
Council Member/Board Member, Saul Ayon
Council Member/Board Member, Ricardo Cano
Council Member/ Board Member, Amador Ayon
1 | Page
STAFF REPORT
CITY OF MCFARLAND
TO: Mayor and City Council
FROM: Chief of Police / City Manager Kenny Williams
DATE: December 1, 2022
SUBJECT: Report, Discuss and Provide clarification concerning the direction given by the Council to the City Manager regarding selection of a new insurance broker for the employee insurance medical plans.
Discussion:
On November 23, 2022 City Council was presented information to allow council to provide direction concerning selection of an insurance broker to provide medical insurance coverage for the City. Two companies, Benefits Solutions and HUB international, provided cost estimates and made presentations regarding their companies.
Council provided direction to the City Manager to work with HUB international as the insurance company for the city.
After the council meeting, members of council made contact with the city manager and indicated they had had mistakenly provided direction to work with the wrong company and would like the issue brought back to council for clarification and the ability to provide updated direction.
Fiscal Impact:
The fiscal impact will be an overall savings for the city.
Recommendation:
Report, Discuss and Provide direction as to which insurance broker, Benefit Solutions or HUB international the city would like to use for its employee insurance medical plans.
Attachments:
I. Original staff report
II. Benefits Options Insurance agency quote
III. HUB international agency quote
1 | Page
STAFF REPORT
CITY OF MCFARLAND
TO: Mayor and City Council
FROM: Chief of Police / City Manager Kenny Williams
DATE: November 23, 2022
SUBJECT: Report, Discuss and Provide direction concerning which insurance broker and which insurance plan the city would like to use for its employee insurance medical plans.
Discussion:
This proposal asks the council to consider changing the city’s insurance broker to allow the city to save costs related to providing employee insurance to the city’s employees. This proposal is designed to decrease the city operational costs associated with employee and dependent medical benefits.
The city is experiencing an increase in operational expenses through an increase in the Kern County Fire contract, an increase in Police personnel costs, and an increase in the city’s Bond expenses. Over the course of this next two years staff forecasts the increases to be approximately $1.2 million to the city’s budget. Adding to these expenses is the increase in the current employee medical insurance from $953,562 to $1,013,557 annually.
This Proposal contains two sections including:
• Section I: Current employee insurance plan.
• Section II: New Options for employee insurance plans. o Option I: Benefits option insurance agency.
o Option II: HUB international insurance company.
Section I: Current employee insurance plans
Currently, the city has three types of employee insurance plans as listed below, excluding, Dental, Vision or Supplemental insurance. The plans are as follows:
• PPO 250 is a Preferred Provider Organization with a $250 deductible. A PPO plan offers a network of healthcare providers employees can use for their medical care. These providers have agreed to provide care to the plan members at a certain rate. • EPO 10 is Exclusive Provider Network with a $10 deductible. An EPO is a managed care plan where services are covered only if you use doctors, specialists, or hospitals in the plans network (Except in an emergency)
• Kaiser: Is a specific company which offers medical service When an employee is hired by the city, they may choose any medical plan the city offers regardless of the costs. The city in turn incurs the entire costs for each plan. Below is a current break down of employees within each insurance program and the associated annual costs for each program. • Blue Cross PPO 250: 16 city employees have this program at a total annual cost of …......$260,501 2 | Page
• Blue Cross EPO 10: 12 city employees have this program at a total annual cost of……...…$320,107 • Kaiser: 22 city employees have this program at a total annual cost of………………..………....$365,655 • Annual cost of all programs……………………………………………………..…………………………………....$946,264 Section II: Options employee insurance plans
Option I Benefits options insurance company
Benefits options provided an estimate of insurance through the use of Anthem Blue Cross and Kaiser. The estimate is $795,281 and includes a breakdown of costs that aligns with current employees plans and provides a cost savings in the amount of $158,280.
Under this plan, the city continues to pay 100% of the insurance premium for both the employee and their dependents, however the costs changes for deductibles and copays.
Refer to the attached quote
Option II HUB international
HUB international provided an estimate of $853,821. This plan incorporated three different options including an Anthem Blue Cross PPO 15/250/10% program, an Anthem Blue Cross PPO 15/40/10% and a Kaiser HMO 90/10/10 plan. The costs savings for this plan is $159,736.
Under this plan, the city continues to pay 100% of the insurance premium for both the employee and their dependents, however the costs changes for deductibles and copays.
Refer to the attached quote
Fiscal Impact:
The fiscal impact will be an overall savings for the city.
Recommendation:
Report, Discuss and Provide direction concerning which insurance broker and which employee insurance plan the city would like to use for its employee insurance medical plans.
Attachments:
I. Benefits Options Insurance agency quote
II. HUB international agency quote
Policy 2023 Rate Subscribers Monthly Total Yearly Total Anthem EPO $10 $ 915.35 0 $ - $ -
Anthem EPO $10 +1 $ 1,830.67 1 $ 1,830.67 $ 21,968.04
Anthem EP $10 +2 $ 2,379.89 11 $ 26,178.79 $ 314,145.48 Anthem PPO $250 $ 740.06 8 $ 5,920.48 $ 71,045.76
Anthem PPO $250 +1 $ 1,480.13 2 $ 2,960.26 $ 35,523.12
Anthem PPO $250 +2 $ 1,924.16 8 $ 15,393.28 $ 184,719.36 Kaiser HMO $15 $ 768.44 10 $ 7,684.40 $ 92,212.80
Kaiser HMO $15 +1 $ 1,531.89 3 $ 4,595.67 $ 55,148.04
Kaiser HMO $15 +2 $ 1,989.96 10 $ 19,899.60 $ 238,795.20 Medical Total: $ 1,013,557.80
Policy 2023 Rate Subscribers Monthly Total Yearly Total ABC PPO 15/250/10% 19 $ 23,840.20 $ 286,082.40
ABC PPO 15/40/10% 12 $ 20,750.60 $ 249,007.20
Kaiser HMO 90/0/10 21 $ 26,560.95 $ 318,731.40
$ 71,151.75
Medical Total $ 853,821.00
Percentage Diference 19%
Total Cost Savings $ 159,736.80
KEENAN Solutions (Current Provider)
HUB International (Submitted Proposal)
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of Out of Network Out of Out of
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
PPO: PPO: PPO: PPO:
Out of
Network
Out of Network Out of
Network
Out of
Network
10% after ded
50% after ded
10%
50% after ded
Delivery and All Inpatient
Services 10% after ded
30% after ded
No Charge
Not Covered
50% after ded
10%
50% after ded
Inpatient Services
Prenatal: 0% (ded waived);
Postnatal: $15 (ded waived)
50% after ded
Prenatal: 0%; Postnatal: $15
50% after ded
Prenatal and Postnatal
Care
10% after ded
30% after ded
$20 (ded waived)
30% after ded
Not Covered
$10 Copay
Not Covered
MATERNITY
$15 (ded waived)
50% after ded
$15
50% after ded
Outpatient Services
10% after ded
10% after ded
30% after ded
$10 Copay
Not Covered
No Charge
MENTAL HEALTH/SUBSTANCE USE DISORDER
Paid as In-Network
10%
Paid as In-Network
Emergency
Transport/Ambulance
$15 (ded waived)
50% after ded
$15
50% after ded
Urgent Care
10% after ded
Covered as In-Network
$20 (ded waived)
30% after ded
Covered as In-Network
$10 Copay
Not Covered
$225 + 10% after ded (copay
waived if admitted)
Paid as In-Network
$200 + 10% (copay waived if
admitted)
Paid as In-Network
Emergency Room
10% after ded
10% after ded
Covered as In-Network
0% coinsurance after
deductible
Covered as In-Network
$100 copay per trip
EMERGENCY SERVICES
50% after ded
$150 + 10%
50% after ded
Outpatient Surgery in a
Hospital
10% after ded
50% after ded
10%
50% after ded
Ambulatory Surgical Center
10% after ded
30% after ded
10% after ded
30% after ded
Not Covered
No Charge
Not Covered
10% after ded
50% after ded
10%
50% after ded
Inpatient Hospital Services
$200 + 10% after ded
10% after ded
30% after ded
No Charge
Not Covered
No Charge
HOSPITAL FACILITY SERVICES
Level 1: 30% up to $250;
Level 2: 40% up to $250
Not Covered
Level 1: 30% up to $250; Level 2:
40% up to $250
Not Covered
Tier 4 (Specialty Drugs)
Tier 1: 2.5x Retail; Tier 2-3: 3x
Retail
Not Covered
Tier 1: 2.5x Retail; Tier 2-3: 3x
Retail
Not Covered
Mail Order
Level 1: $30; Level 2: $40
Not Covered
Level 1: $30; Level 2: $40
Not Covered
Tier 2 (Preferred Brand
Formulary)
Level 1: $50; Level 2: $60
Not Covered
Level 1: $50; Level 2: $60
Not Covered
Tier 3 (Non-Preferred
Brand Formulary)
Level 1: $5; Level 2: $15
Not Covered
Level 1: $5; Level 2: $15
Not Covered
Tier 1 (Generic Formulary)
PRESCRIPTION DRUGS
None
Not Covered
None
Not Covered
Pharmacy Deductible
Freestanding: 10% after ded;
OPHosp: $100 + 10% after
ded
50% after ded
Freestanding: 10%; OPHosp: $100
+ 10%
50% after ded
Imaging (CT/PET scans,
MRIs) 10% after ded
30% after ded
$100 copy per service
Not Covered
0% (ded waived)
50% after ded
0%
50% after ded
Preventive Care
Office: $10 (ded waived);
Freestanding: 0% (ded
waived)/ 10% after ded;
OPHosp: 10% after ded
50% after ded
Office: $10; Freestanding: 0%/10%;
OPHosp: 10%
50% after ded
Diagnostic Lab/X-Ray
No charge
30% after ded
10% after ded
30% after ded
No Charge
Not Covered
No Charge
Not Covered
50% after ded
$15/$40
50% after ded
Office Visits
Virtual Care: 0% (ded waived)
Not Covered
Virtual Care: 0%
Not Covered
Telemedicine
$20/$20 deductible
waived
30% after ded
Virtual 0% ded waived
Not Covered
Not Covered
$10 copay
Not Covered
$7,600 (embedded; includes
ded)
$15,200 (embedded; includes
ded)
$7,600 (embedded)
$15,200 (embedded; includes ded)
Family
$15/$30 (ded waived)
$5,000
$13,000
$3,000 family
Not Covered
$10 copay
PHYSICIAN SERVICES
$4,000 (embedded)
$0
$4,000 (embedded)
Family
$3,800 (includes ded)
$7,600 (includes ded)
$3,800
$7,600 (includes ded)
Individual
$750
$750
$2,500
$6,500
Not Covered
$1,500 person
Not Covered
OUT-OF-POCKET MAX
DEDUCTIBLE
$250
$2,000
$0
$2,000
Individual
$750 (embedded)
$250
$250
$0
Not Covered
$0
Anthem BC
Anthem Platinum PPO 15/250/10% (6RG6)
PPO / Platinum
1/1/2023
City of McFarland Anthem BC
Presented By: Shaylyn
Lewis License# 0J20474
Anthem Platinum PPO 15/40/10% (6RH4)
PPO / Platinum
1/1/2023
Antehm Blue Cross
Custom EPO (0/10/0)
EPO Plan
CURRENT PLAN
Antehm Blue Cross
Custom EPO (0/10/0)
EPO Plan
CURRENT PLAN
Kaiser Plan Comparison
MATERNITY
Prenatal and Postnatal Care 0%
Delivery and All Inpatient Services $500/Admission
No Charge
No Charge
MENTAL HEALTH/SUBSTANCE USE
DISORDER
Outpatient Services $10
Inpatient Services $500/Admission
$15 visit
No Charge
Emergency Room $200 (waived if admitted)
Emergency Transport/Ambulance $150
Urgent Care $10
$100/visit
No Charge
$15/visit
Outpatient Surgery in a Hospital $300
Ambulatory Surgical Center $300
EMERGENCY SERVICES
$15/procedure
$15 / procedure
Mail Order 2x Retail (up to 100-day supply)
HOSPITAL FACILITY SERVICES
Inpatient Hospital Services $500/Admission
$20 / $40
No Charge
Tier 2 (Preferred Brand Formulary) $15 (up to 30-day supply) Same as preferred brand drugs when
approved through exception process
Tier 3 (Non-Preferred Brand
Formulary)
Tier 4 (Specialty Drugs) 10% up to $250 (up to 30-day supply) $20
$20
20% up to $150
Imaging (CT/PET scans, MRIs) No Charge $150
PRESCRIPTION DRUGS
Pharmacy Deductible None
Tier 1 (Generic Formulary) $5 (up to 30-day supply)
None
$10
Telemedicine 0%
Preventive Care 0%
Diagnostic Lab/X-Ray $20/$40
No Charge
No Charge
Family $6,000 (embedded)
PHYSICIAN SERVICES
Office Visits $10/$20
$3,000
$15 / $15
Family $0
OUT-OF-POCKET MAX
Individual $3,000
$
$1,500
DEDUCTIBLE
Individual $0 $0
City of McFarland
Presented By: Shaylyn Lewis
License# 0J20474
Kaiser
CURRENT PLAN
Kaiser Platinum 90 HMO 0/10 + Child
Dental Alt
HMO / Platinum
44927
City of McFarland
Presented By Benefits Options Insurance Agency
GROW with Change:
Benefits Options Insurance Agency understands that Small Businesses are the lifeblood of the American Economy. We are intimately aware of and connected to the problems inherent to small companies, especially those problems associated with employee satisfaction and productivity. As business professionals too, our capacity to understand your business needs goes beyond just the traditional commoditized approach.
We are a purpose-driven business where we truly embed purpose in every action, aiming to leave an enduring impact on people’s lives. It’s almost impossible to overstate the relationship between employee satisfaction and customer satisfaction.
In fact, it’s fair to say that in order to be customer-focused, you need to first be employee-focused.
Ready to become an Employer of Choice?
Vision | Strategy | Implementation | Results
We combine regional capabilities with local expertise.
For over 22 years, Benefits Options has been helping employers address 6 main challenges:
• Employees who don’t understand their employers benefits program • Can’t keep up with constantly changing rules and regulations • Haven’t adopted technology
• Employees not engaged
• Overwhelmed HR department
• Struggling to contain health insurance costs
We are here to help you reclaim your benefits costs as an investment vs. an expense Physical health Mental health Financial health Social health We think holistically to strengthen your employee experience. Supporting employees’ holistic wellbeing includes providing support in these key areas:
EMPLOYEE BENEFIT SOLUTIONS
Plan design, strategic planning, financial forecasting, alternative premium funding, claims and utilization analysis.
Underwriting & Analytics
HR Consulting Hotline, Training, bi-lingual service reps, employee call center, Labor legal consultation and service calendars to ease your administrative burdens.
HR Services
Healthcare consumption, Data, Analytics, disease management, and aligned incentives to improve health.
Population Health Management
Tools, legislative updates, CAA & ACA guidance, annual
disclosure notices, SPD, Section 125/POP, Form 5500
preparation, wrap documents, ERISA, COBRA, HIPAA.
Compliance/Healthcare Reform
Options for members to make more efficient care decisions without sacrificing quality.
Care Intervention
Planning, screenings and campaigns. Annual communication plan that drives engagement in benefits, wellness, and culture.
Wellness and Communication
Competitive marketing and scoring drives results for other plan services, GeoBlue travel insurance, FSA, HRA
Ancillary Benefits
Create a completely digital solution that is paperless, secure, and cohesive across every point of client engagement.
Technology
Benefit Options Agency is designed to advocate and reinvest in small businesses, contain cost, promote regulatory compliance, and deliver superior account service. We focus on eight primary employee benefit service areas.
A comprehensive, holistic view of your employee benefits plan
November 2022 December 2022 January 2023 February 2023 March 2023 Cost – Benefit Analysis
Secure carriers and place
materials order for open
enrollment. Start
onboarding process and set
up online enrollment
platform and call center.
Open Enrollment
Conduct OE meetings the
week of December 5th.
Submit enrollment and
complete installation. Cards
distributed.
Post enrollment evaluation
Post enrollment analysis.
Set up accounts, and audit
enrollment for payroll. Set
up cadence for employee
Education.
Advocacy, Communication
& Educational Tool Sets
Compliance Tool Sets
April 2023 May 2023 June 2023 July 2023 August 2023
Q1 evaluation and establish
Efficiency Tool Sets
Mid-Year Stewardship
Claims and utilization
management and review
Health Fair
Employee health fair,
education, communication
and engagement
NEXT STEPS
What Our Clients Have to Say
Patricia Rockwell – HR manager City of Ridgecrest
“Eric and his services have been great. He has made my job much easier when it comes to all things benefits.
He is quick to return calls and I feel he hears me and even thought we are a smaller agency, I don’t feel small with Eric.
He is Johnny on the spot and takes the time to listen. Eric is also a good sounding board for running ideas past or in brainstorming for a way to get more from the benefit vendors. I highly recommend Eric and his services.” Julie Eyssallenne – CEO Black Bird Fire Protection
“Eric Trost is an outstanding broker to work with! I have been working with him for nearly four years now with an array of benefits Offered to our employees. His service has been excellent. He has been responsive and is highly knowledgeable with many years of Experience. I highly recommend him to others as he is personable, trustworthy, and goes above and beyond with clients’ needs. If you are looking for a broker, Eric is your guy!”
Drew Triplett – CEO F.H.M.
“Benefits Options helped me create an employee benefits plan that let our employees maximize the value of their plan.” • Naomi Silvi
• Account Manager
• Diego Conejo
• Financial Advisor
• Debbie Bellenger
• Health & Wellness Director
• Eric Trost
• President/Consultant
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