6.7 Wellness Fair AgreementCITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
1/14/13 4:00 P.M.
AGENDA SECTION
NO: 6
ITEM
NO. 7
ORIGINATING DEPARTMENT:
HUMAN RESOURCES
BY: Natalie Fischer
APPROVED FOR
AGENDA:
BY:
ITEM: Resolution No. 13-6973
Authorization to purchase wellness fair services from Comcare.
BACKGROUND:
In 1997, the City of Salina health insurance program switched from a fully insured program to a
partially self-funded program. Self-funded programs involve the employer contributing funds to
cover expenses in exchange for lower fees from the insurer, versus fully insured group insurance
where the employer pays all premiums to the insurer. The City of Salina purchases third-party
administrator services for claim processing as well as stop-loss coverage to offset risk. Since the
inception of the program, the City has realized a savings of nearly $2.1 million when comparing
funds set aside as “internal premiums” to actual costs of claims and administration.
Although our program’s performance tends to be favorable, national trends reflect that health
claims will continue to rise. Claims and fees have trended at an average of 8% over the past 12
years, with the current year projected to be 5.1-6% above last year. Over the past few years, staff
has taken steps to save money including increasing the stop-loss (similar to a deductible) and
changing prescription benefit managers to obtain additional data to for future cost-saving program
implementation. While these savings help us control costs, staff believes that in order to save
money on health claims we need to take proactive measures to decrease claims and prevent
large future claims through a results-oriented wellness program. In 2009 the City held its inaugural
wellness fair for all employees, along with employee spouses and all subgroup employees and
spouses covered by our health plan. The services included Blood Chemistry Screening, Health
Risk Appraisals, Body Mass Index (BMI), Body Fat Analysis, and Blood Pressure screening. Over
the past few years, our participation has ranged from 24-28%. Comcare provides staff with a
group results report without participants identified. This report outlines risk areas and provides a
baseline in which comparative results can be drawn as the data is obtained over time.
The structure of the fair would mirror what was offered last year. In the event an employee or
covered individual’s schedule would not allow for participation onsite, he or she would be able to
schedule the screenings directly at Comcare within a designated period of time following the
wellness fair. In order to increase participation in our wellness program and further the wellness
culture, the approach for the upcoming benefit year is to provide quarterly “rebates” on health
insurance premiums for each person meeting participation requirements. For employees not on
our health insurance plan, small incentives such as Chamber of Commerce gift certificates will be
offered in lieu of the premium rebate. Staff believes that because wellness can increase
productivity and morale while reducing absenteeism, it is important to include all employees that
want to participate.
FISCAL NOTE:
An exact cost is hard to determine as it is variable based on total participation. Proposed fees are
based per person for the blood screening ($40) and Health Risk Appraisal ($10), while the BMI,
Body Fat Analysis, and Blood Pressure screenings are based on an hourly staff rate per Comcare
staff professional ($80/hr.) and staff assistant ($40/hr.). These rates are equal to the 2011 rates
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
1/14/13 4:00 P.M.
AGENDA SECTION
NO: 6
ITEM
NO. 7
ORIGINATING DEPARTMENT:
HUMAN RESOURCES
BY: Natalie Fischer
APPROVED FOR
AGENDA:
BY:
and did not increase, although we will be paying an additional fee for data entry to provide the
reports for employees and the non-identifying report for staff. Following completion of all
screenings, Comcare will provide Human Resources staff with non-identifying data about our
group, including any risk areas, unknown diseases or other serious issues detected. Participants
receive personal reports and optional education about their results. In the past few years, we have
offered gift cards or Chamber of Commerce gift certificates for those attending the wellness fair
and completing the screenings, but this year we will transition to a points/activity rebate system
and not offer the gift cards. As mentioned in the previous section, in efforts to engage individuals
all year, quarterly rebates will be offered when individuals meet participation levels from a wide
menu of activities or programs with participation at the wellness fair is among the activities that will
earn employees many points.
The following chart projects wellness fair expenses at various levels of participation.
Health
Plan
Blood
Screen HRAs
BMI/Body Fat/
Blood Pressure
Total
Participation Employees
& Spouses ($40) ($10 )
25% 225 $9,000 $2,250 $6,400 $17,650
35% 315 $12,600 $3,150 $6,400 $22,150
45% 405 $16,200 $4,050 $6,400 $26,650
50% 450 $18,000 $4,500 $6,400 $28,900
65% 585 $23,400 $5,850 $8,000 $35,650
75% 675 $27,000 $6,750 $8,000 $40,150
85% 765 $30,600 $7,650 $8,000 $44,650
95% 855 $34,200 $8,550 $9,000 $49,150
100% 900 $36,000 $9,000 $9,000 $51,400
City Employees
Not on Plan 25 $1,000 $250 $7,650
Maximum
Participation $59,050
Total costs could be as high as $60,000 based on very high participation and factoring in additional fees for
the data entry and production of reports. Annual health claims and administration fees in 2012 were
approximately $6.1 million. During the past two years, participation has ranged from 24-28%, but based on
wellness program enrollment during benefit open enrollment, we are projecting participation to be 40-45%,
and expenses near $27,000. With regard to the types of services offered, we believe the unit rates are very
reasonable and have not increased from 2010. Staff believes the money spent on wellness is an
investment in future savings and moving forward with the wellness program is contingent upon the
information gathered. The data will provide us a baseline for a truly effective and sustainable wellness
program and will help us to monitor changes occurring with the participants. For 2013, $200,000 was
budgeted to cover wellness fair expenses, rebates, and other related items.
In efforts to transition from a rate agreement that has been used in prior years to the City contract for
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
1/14/13 4:00 P.M.
AGENDA SECTION
NO: 6
ITEM
NO. 7
ORIGINATING DEPARTMENT:
HUMAN RESOURCES
BY: Natalie Fischer
APPROVED FOR
AGENDA:
BY:
professional services, staff has provided a contract to Comcare for review with anticipation that it will be
completed soon.
RECOMMENDED ACTION:
City Commission alternatives are considered to be as follows:
1) Approve Resolution No. 13-6973, authorizing the City of Salina to purchase services for a
wellness fair from Comcare.
2) Authorize Staff to purchase services for a wellness fair in a modified format.
3) Eliminate services associated with the wellness fair for 2013.
RESOLUTION NUMBER 13-6973
A RESOLUTION AUTHORIZING THE PURCHASING WELLNESS FAIR SERVICES
FROM COMCARE.
BE IT RESOLVED by the Governing Body of the City of Salina, Kansas:
Section 1. That the City Manager is hereby authorized to purchase wellness fair services from
Comcare as proposed.
Section 2. That the City Clerk is hereby directed to file the original agreement and retain
according to the City of Salina Records Management Policy.
Section 3. That this resolution shall be in full force and effect from and after its adoption.
Adopted by the Board of Commissioners and signed by the Mayor this 14th day of January, 2013.
Norman M. Jennings, Mayor
(SEAL)
ATTEST:
Lieu Ann Elsey, CMC, City Clerk