HomeMy WebLinkAboutInsurance Committee Minutes 05.17.1995 MINUTES
INSO-RANCE COMMITTEE
MAY 17, 1995 5:30 P.M.
COUNCIL C}AAMBERS
MEMBERS PRESENT:
OTHERS PRESENT:
Chairman- Chuck Dickerson
Lonnie Kellogg Matt Hoppel
Don Hackmann Chuck Rodgers
Andy Loebe
Mark K. Vinner, Big Horn Management Co.
Allan Smetana, Metropolitan Life Ins. Co.
Mark Vinner, Big Horn Management Co., Allan Smetana, Metropolitan
Life Ins. Co., and Lonnie Kellogg, servicing agent for McHenry Ins.
Co., addressed the committee regarding their insurance bids. Ail
three provided quotes from John Alden Life Ins. Company. These are
non-binding quotes until the final health statement is received
from the City employees.
There was a difference in premiums between all three bids but it
was mentioned that regardless of the agency selected, the final
premium will be the same.
John Alden Life is the second largest health insurance carrier in
Montana, behind Blue Cross/Blue Shield.
Some of the points mentioned regarding the John Alden policy were:
~1,000 annual accident supplement- no deductible~
-100 annual X-ray and lab work- no deductible
-Dependent covered until age 19, which continues to age 25 if
enrolled as a full-time college student.
-80/20 co-insurance first $5,000 then, 100%.
-$2,000,000 lifetime maximum benefit.
-The deductible to date with United of Omaha would count
towards the deductible with John Alden Life.
-Rate would be guaranteed for 12 months.
-We are checking on preexisting conditions upon conversion.
-No claim forms required- just send your bills to the claims
office in Boise, Idaho.
Discussion regarding the'plan year starting July 1st. Due to the
time it might take to get a firm bid and review it and also discuss
the plan with the retiree's, the committee felt we could go to
August 1st if needed. A 30 day notice should be given to United of
Omaha.
Discussion regarding hiring a consultant. It was the consensus of
the committee to not hire a consultant.
There is a concern about the premium for the 5 retirees who are on
There is a concern about the premium for the 5 retirees who are on
the plan. Life insurance premiums from John Alden Life is based on
age, causing their premium to be higher than United of Omaha.
United of Omaha has a flat rate of $6.30 for $10,000, with benefits
and premiums decreasing at age 65.
John Alden's life policy is $15,000 with benefits beginning to
decrease at age 55. The committee will do more checking on the
life insurance and also possibly write to the retired employees
asking them to attend a committee meeting to discuss this issue.
After a lengthy discussion and after considering that all bids will
be equal, a motion was made by Andy Loebe, seconded by Matt ~oppel
that the committee recommends McHenry Insurance as the agency for
John Alden Life, which will provide the City with local agent
representation. Motion carried with Lonnie Kellogg abstaining.
The meeting was adjourned at 7:38 p.m.
The next meeting is scheduled for Wednesday, May 24th at 5:30 p.m.
Respectfully submitted,
Don Hackmann
City Clerk