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File #: 2015-1355   
Type: Policy Status: Passed
File created: 9/1/2015 In control: Board of Directors - Regular Board Meeting
On agenda: 10/22/2015 Final action: 10/22/2015
Title: FINANCE, BUDGET AND AUDIT COMMITTEE FORWARDED DUE TO ABSENCES AND CONFLICTS authorizing the Chief Executive Officer to renew existing group insurance policies covering Non-Contract, AFSCME, and Expo employees for the one-year period beginning January 1, 2016 and to approve the use of a flexible spending card administered by a third-party vendor.
Sponsors: Board of Directors - Regular Board Meeting
Indexes: Amalgamated Transit Union, American Federation Of State County And Municipal Employees, Audit, Employee benefits, Non-contract, Policy, Subsidies, Transportation Communications Union, Trust Funds
Attachments: 1. Attachment A - Monthly Premium Rates, 2. Attachment B - Monthly Employee Contributions
Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
OCTOBER 14, 2015

Subject/Action
SUBJECT: GROUP INSURANCE PLANS

ACTION: RENEW GROUP INSURANCE POLICIES

Heading
RECOMMENDATION

Title
FINANCE, BUDGET AND AUDIT COMMITTEE FORWARDED DUE TO ABSENCES AND CONFLICTS authorizing the Chief Executive Officer to renew existing group insurance policies covering Non-Contract, AFSCME, and Expo employees for the one-year period beginning January 1, 2016 and to approve the use of a flexible spending card administered by a third-party vendor.

Issue
ISSUE

A comprehensive package of health resources provides existing employees a foundation to maintain or improve health, and helps to attract and retain qualified employees. LACMTA, including the Public Transportation Services Corporation (PTSC), seeks to offer benefit plans that promote efficient use of health resources and are cost effective for the company and our employees.

Discussion
DISCUSSION

The Non-Contact Group Insurance Plan, a flexible benefits program, was implemented in August 1994. Roughly 99% of the employees covered by the benefit plans are PTSC employees. Expo employees are also covered by our plans, providing a cost-effective means of offering benefits to this small group. On an annual basis, employees are encouraged to review their enrollment and may choose medical, dental, vision, supplemental life, long-term disability, and accidental death and dismemberment plans that meet their needs. Alternatively, employees may opt to waive medical and/or dental coverage and receive a taxable cash benefit, provided proof of other coverage is submitted. Employees may also participate in the flexible spending accounts, a vehicle to pay for certain out-of-pocket healthcare and dependent care expenses on a pre-tax basis.
The overall premium increase for calendar year 2016 is 10.4%. This reflects $2.4 million in negotiated reductions from the initial renewal quotes. The recommended med...

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