RESOLUTION NO. RS2008-448

A resolution approving an amendment to the account based self-insured medical benefits plan for employees and pensioners under Section 3.08.110(E) of the Metropolitan Code.

WHEREAS, the Metropolitan Council has adopted a system of employee benefits for officers and employees of the Metropolitan Government; and

WHEREAS, the system of employee benefits adopted by the Metropolitan Council includes medical care benefits for officers and employees of the Metropolitan Government; and

WHEREAS, section 3.08.110(E) of the Metropolitan Code provides: “In addition to the self-insured medical benefits plan that is administered on a PPO/non-PPO basis, the Employee Benefit Board is authorized to adopt other types of self-insured medical plan design structures. Each such self-insured medical plan design structure shall be adopted by the Benefit Board only following an actuarial determination of the effect of the particular plan on the soundness of the system's design of benefits as well as its effect on the cost of the system”; and

WHEREAS, section 3.08.110(E) of the Metropolitan Code further provides that no additional self-insured medical benefits plan shall become effective until such plan is approved by resolution of the Council receiving twenty-one (21) affirmative votes; and

WHEREAS, the Metropolitan Council adopted Resolution No. RS2007-1, approving an account based self-insured medical benefit plan for officers and employees of the Metropolitan Government; and

WHEREAS, the account based self-insured medical benefit plan approved by Resolution RS2007-1 includes a Health Reimbursement Arrangement, described as follows:

Health reimbursement arrangement: A notional account shall be established and maintained for each participant. At the beginning of each plan year until the participant becomes eligible for Medicare, the amounts of $1,000 for individual coverage and $2,000 for family coverage shall be added to the account. Balances remaining in the notional account at the end of each plan year will be added to the participant’s beginning balance the following plan year. Plan benefits shall be paid at 100% of reasonable and customary charges until the notional account is exhausted.

WHEREAS, the Metropolitan Employee Benefit Board has adopted an amendment to the account based plan approved by Resolution RS2007-1, by changing the amounts of the Health Reimbursement Arrangement as follows:

Health reimbursement arrangement: A notional account shall be established and maintained for each participant. At the beginning of each plan year until the participant becomes eligible for Medicare, the amounts of $1,100 for individual coverage and $2,200 for family coverage shall be added to the account. Balances remaining in the notional account at the end of each plan year will be added to the participant’s beginning balance the following plan year. Plan benefits shall be paid at 100% of reasonable and customary charges until the notional account is exhausted.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. That the Metropolitan Employee Benefit Board’s amendment to the account based plan authorized by Resolution No. RS 2007-1 is hereby approved.

Section. That the Health Reimbursement Arrangement of the account based plan approved by Resolution RS2007-1, is hereby amended to read as follows:

Health reimbursement arrangement: A notional account shall be established and maintained for each participant. At the beginning of each plan year until the participant becomes eligible for Medicare, the amounts of $1,100 for individual coverage and $2,200 for family coverage shall be added to the account. Balances remaining in the notional account at the end of each plan year will be added to the participant’s beginning balance the following plan year. Plan benefits shall be paid at 100% of reasonable and customary charges until the notional account is exhausted.

Section 3. That this resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Sandra Moore, Jim Forkum

Attachment(s) on file in the Metropolitan Clerk's Office

LEGISLATIVE HISTORY
Referred:	Budget & Finance Committee Personnel Committee
Introduced:	September 16, 2008
Adopted:	September 16, 2008
Approved:	September 19, 2008
By: