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City of Puyallup

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AI- 3980   13.    
City Council Agenda
Meeting Date: 10/15/2013  
Subject:    Healthcare and Wellness Committee Update
Presenter: Debi Christensen
Department: Human Resources  

Information
Recommended Action
Informational only.
Background
The City and Council established the Healthcare and Wellness Committee by Resolution #2064 on August 13, 2007 (see attached) for the purpose of building a culture of health. The committee was created to represent all employees and to address issues associated with the City's self-insured healthcare program. Members from each labor group sit on the committee, along with non-represented employees, management, Human Resources, Finance and the City's Wells Fargo broker representatives.

Goals of the committee include: a) exploring ways to control health care expenses, b) increasing employee education about insurance benefits, and c) seeking employee input into insurance benefits carriers and plan design. The committee does not negotiate for and/or bind the City to any decision or course of action, but does make recommendations.

The mission of the Healthcare and Wellness Committee is to educate, advocate, and promote individual and overall health and wellness of the City community, and to humanize and responsively manage healthcare assets.
Previous Actions (Discussions/Presentations)
N/A
Summary of Proposal
Healthcare costs are important to all, with cost containment being a priority. The Healthcare Committee would like to offer a preview into an employee driven insurance cost containment strategy for health insurance. This idea stemmed from regular committee meetings. In order to implement the program, Human Resources would request to bargain with all six (6) represented union groups given benefits are a mandatory subject of bargaining.

The committee developed DRAFT framework for a Wellness Program. This is an exciting strategy! It is a new method of structuring healthcare to ensure access to quality healthcare for all City of Puyallup covered members who participate in the Wellness Program, and to incentivize those who actively assist the City in containing costs through wellness and prevention. In addition, the program would ensure a robust wellness program with self-guided tools to maintain optimum health. Finally, it would preserve quality medical, pharmacy, dental and vision programs and lessen claims costs over time to ensure affordable quality programs in 2014 and beyond.

Draft Wellness Strategy for City of Puyallup
2013: The current program provides an annual opportunity for biometric screening (e.g., cholesterol numbers, body mass index). Members and dependents who participate receive a $100 per year contribution in a flexible spending account (FSA).

2014: If implemented, 2014 will serve as a year to educate employees about the Wellness Program components. This allows one year to comply with Wellness Program elements including a preventative care exam (i.e., physical) with biometric screening, health assessment data entry such as within the Mayo Clinic web site portal, and to be tobacco free. Those who meet all plan prongs continue with no adverse impact for healthcare insurance the following year. New hires in 2014 would participate in some premium sharing from their date of hire until at least the end of 2014. New hires who meet the Wellness Program elements before the end of 2014 would discontinue premium sharing in 2015.

2015: All employees must meet the 2014 wellness criteria to retain current benefits in 2015 as pre-determined by policy makers and bargaining.  Employees hired in 2015 would have that year to comply and would participate in some premium sharing until 2016 or when they meet the program elements; whichever is later.

2016: Same requirements as 2015, plus participation in a Fit Forum program to retain lowest cost contributions in 2016.

Healthcare & Wellness Committee is committed to:
  • Strategies designed to optimize employee health
  • Reducing avoidable healthcare issues
  • Cost containment
In closing, the committee believes that employee incentives can help the City contain costs through wellness and prevention.
Alternatives/Options

Fiscal Impact
Attachments
Healthcare & Wellness Committee Council Resolution 2064
Draft Wellness Initiative

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