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Regular City Council Meeting <br />August 11,2003 <br />Page 25 <br /> <br />said that the city is a self-funded group and self insured. He said that the city <br />uses TML as a third party administrator to process and audit the claims, but <br />the claims are paid dollar for dollar by the city and we have taken quite a hit. <br />Mr. Anderson explained that the city started insuring on this basis in 1985 <br />when Nick Hammond, who implemented that, was Personnel Director. Mr. <br />Anderson said that, in the 18 years that we have used it, probably 14 or 15 of <br />those years the city has come out ahead, but right now we are in the hole. <br /> <br />Councilman Guest asked what was the alternative. Mr. Anderson said they are <br />talking to TML to see what could be saved if the city alters its plan. Mr. <br />Anderson said he has talked to them about getting in the TML Pool with other <br />cities, but at this point, the cities claim experience has been so bad they are not <br />interested in the city joining the pool, which is the same problem we are going <br />to have if we try to go out and obtain a private insurance company. Mr. <br />Anderson said what they think they have to do is get the claim costs under <br />control with regard to some of these catastrophe claims that we have to deal <br />with. He said these people have got to get better or not get better and leave the <br />plan so that we do not have that liability. He said that the city will have to alter <br />the plan and make benefit reductions to save money and look at whether or not <br />they want the employees to contribute a larger share. Mayor Fendley asked <br />how much the employees contribute. Mr. Anderson said it is really not on a <br />percentage basis. He said there are three different rates. The employee and <br />spouse rate is about $135.00 or $140.00 a month for the employee's <br />contribution. The employee and family rate is $220.00 a month for the <br />employee's contribution and the premium for a single employee is picked up <br />by the city. <br /> <br />Mr. Anderson said they have an individual stop loss that is $75,000.00 per <br />individual then there is a group stop loss. <br /> <br />Councilman Bell asked if the hospitalization term and benefits and these <br />things, are they things that they take up in the budget, or are they set by <br />separate ordinances or resolutions? Mr. Anderson said they can certainly <br /> <br /> <br />