TO: Mayor Collins and Town Council Members
FROM: Kevin Burke, Town Manager
Jinnett Hancock, Human Resources Manager
DATE: April 13, 2017
DEPARTMENT: Town Manager
Staff Contact Jinnett Hancock, 480-348-3520
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AGENDA TITLE:
Title
Adoption of Resolution Number 2017-07 Authorizing Membership in the Arizona Metropolitan Trust (AzMT) for Employee Medical, Dental, Vision, Life, Accidental Death and Short Term Disability Insurance
Body
Council Goals or Other Policies / Statutory Requirements:
RECOMMENDATION:
Recommendation
Adopt Resolution Number 2017-07.
Background
The Town of Paradise Valley has been a member of Arizona Public Employers Health Pool (APEHP) since July 1, 2013. Several factors lead us to examine the Town's employee health insurance program to determine if current services could be improved upon. The following concerns were found.
* The cost for both the Town and the employees.
* Concerns regarding last year's premium increase. Initially the Pool advised the Town that the increase would be 3%. Later staff was advised that the increase would be 5% instead.
* Dozens of prescription drugs were removed from the plan's Formulary List and are no longer covered.
* The large gap between the deductibles employees are required to pay and the Out of Pocket Maximums of the plans.
* Questions regarding the competitiveness of the Town's insurance plans in relation to what other municipalities offer.
The Town identified the Arizona Metropolitan Trust (AzMT) as a better alternative to the Town's current health insurance. AzMT is a self-insured employee benefits pool that provides health benefits and services to public entities. It is made up of nine members, which include: City of Avondale, City of Apache Junction, City of El Mirage, Town of Fountain Hills, City of Maricopa, Pinal County, Town of Youngtown, Buckeye Valley Fire District and Sun City Fire District.
The insurance plans offered by AzMT come at a lower cost and pro...
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