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HomeMy WebLinkAboutResolutions - 1992.06.25 - 20448June 25, 1992 FISCAL REPORT (Misc. 92143) BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON IN RE: FRINGE BENEFITS - IMPLEMENTATION OF PREFERRED PROVIDER ORGANIZATION (PPO) HEALTH COVERAGE, MISCELLANEOUS RESOLUTION # 92 143 The Finance Committee has reviewed Miscellaneous Resolution #92 and finds: 1. The Fringe Benefits Review Committee is recommending that the County implement a Preferred Provider Organization (PPO) health care option. 2. It is estimated (dependent on employee participation, claim type and utilization) that such a program will result in a 6% minimum cost reduction in Blue Cross, a 6% minimum cost reduction in prescriptions and a cost reduction for physicians. 3. The Personnel Department and Risk Management have met with representatives of Blue Cross/Blue Shield and believes that the implementation of a PPO is feasible. 4. The option would be self-funded through Blue Cross/Blue Shield and enrollments would be handled in the same manner as the traditional plan. 5. Effective January 1, 1993, Oakland County implement an additional health care option known as a Preferred Provider Organization (PPO). FINANCE COMMITTEE PERSONNEW COMMITTEE MISCELLANEOUS RESOLUTION #92143 June 25, 1992 BY: Personnel Committee, Marilynn Gosling, Chairperson IN RE: Personnel/Employee Benefits: Implementation of Preferred Provider Organization (PPO) Health Coverage TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS, the Fringe Benefits Review Committee has been identifying methods of reducing benefit costs while maintaining a balanced, competitive and attractive benefit package for County employees; and WHEREAS, research has been completed on another health care option known as Preferred Provider Organization (PPO); and WHEREAS the Personnel Department and Risk Management have met with representatives of Blue Cross/Blue Shield and believe that the implementation of a PPO is feasible; and WHEREAS, it is estimated (dependent on employee participation, claim type and utilization) that such a program will result in a 6% minimum cost reduction in Blue Cross, a 6% minimum cost reduction in prescriptions and a cost reduction for physicians; and WHEREAS, based on these findings, the Fringe Benefits Review Committee recommends the County implement a Preferred Provider Organization health care option. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Cmmissioners authorizes the implementation of an additional health care option known as a Preferred Provider Organization (PPO). BE IT FURTHER RESOLVED the option would be self-funded through Blue Cross/Blue Shield and enrollments would be handled in the same manner as the traditional plan. BE IT FURTHER RESOLVED the plan shall become effective January 1, 1993. Mr. Chairperson, on behalf of the Personnel Committee, I move adoption of the foregoing resolution. 10APPROVENEfORE Resolution # 92143 June 25, 1992 Moved by Gosling supported by Jensen the Fiscal Report be accepted. A sufficient majority having voted therefor, the report was accepted. Moved by Gosling supported by Jensen the resolution be adopted. AYES: Johnson, McConnell, McCulloch, McPherson, Moffitt, Oaks, Obrecht, Olsen, Palmer, Pappageorge, Pernick, Price, Schmid, Serra, Skarritt, Aaron, Bishop, Caddell, Crake, Ferrens, Gosling, Huntoon, Jensen. (23) NAYS: Krause. (1) A sufficient majority having voted therefor, the resolution was adopted. , STATE OF MICHIGAN) COUNTY OF OAKLAND I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on June 25, 1992 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 25th day of) Juen ;4 199 2 -1, Lynn/. Allen, County Clerk