Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JULY 14, 2021
Subject
SUBJECT: GROUP INSURANCE PLANS
Action
ACTION: APPROVE RENEWAL OF GROUP INSURANCE POLICIES
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to renew existing group insurance policies covering Non-Contract and AFSCME employees, including the life and disability coverage for Teamster employees, for the one-year period beginning January 1, 2022.
Background
BACKGROUND
Our health insurance plans are part of the total compensation package that helps attract and retain qualified employees, as well as provide existing employees a foundation to maintain or improve health. Los Angeles County Metropolitan Transportation Authority (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-Contract 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. 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 medical coverage is submitted and the employee does not obtain subsidized coverage from an exchange. 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 cost is a 0.59% decrease for calendar year 2022. This reflects more than $2.5 million in negotiated reductions from the initial renewal quotes. The recommended medical, dental, and vision premiums are...
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