Title
Resolution to Approve the Renewal Contract with Mutual Eye Claims Audit, Inc. (MECA) to Provide Vision Coverage to City Employees and Their Dependents and Authorize the City Administrator to Execute the Necessary Documentation ($113,500.00)
Memorandum
The attached Resolution authorizes the City Administrator to execute the renewal of vision coverage services contract with our vision care service provider. The estimated cost of this employee benefit renewal is $113,500.00. MECA uses an “evergreen” contract for our vision benefits program, meaning they do not issue a new contract at each renewal, but only provide the guaranteed administrative services-only renewal rate.
This Plan is a self-funded program, and requires the City to pay for the actual cost of claims. The City pays an Administrative Fee to MECA based on the number of contracts each month, in addition to paying all of our members’ incurred claims. The Fiscal Year 2008-2009 monthly Administrative Fee per contract (per enrollee) remains $0.40, plus an Administrative Fee of 6.5% of claims paid. These rates have not changed since 2003.
Employee labor contracts and employee benefit plans establish the level of vision coverage for City employees. The costs for the program will fluctuate monthly depending both on the number of employees enrolled in the program during any given month, and the amount of incurred claims actually paid during any given month.
MECA received Human Rights approval on June 3, 2008.
The above referenced cost projections are in accordance with the approved Fiscal Year 2008 - 2009 budget, barring any unforeseen circumstances. The benefit coverage levels will remain the same for the Fiscal Year 2008-2009 as currently underwritten.
Staff
Prepared By: Elizabeth S. Edwards, Employee Benefits Manager
Reviewed By: Carol S. Schuler, Director of Human Resources and Labor Relations
Approved By: Roger W. Fraser, City Administrator
Body
Whereas, The City provides vision care co...
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