HomeMy WebLinkAbout11-038 - ADMIN Resolution - City Council - 2011/03/21•
•
RESOLUTION NO. 11-038
RESOLUTION APPROVING
FEDERAL EARLY RETIREE REINSURANCE PROGRAM (ERRP)
DISBURSEMENT
WHEREAS, in the Affordable Care and Patient Protection Act of 2010, an Early Retiree
Reinsurance Program (ERRP) was established by the federal government to provide approved
entities with a reimbursement of health care expenses incurred by their early retirees and;
WHEREAS, the purpose and intent of the ERRP program is to lower premium costs for
all plan participants who may have high premiums because of claims incurred by retirees and;
WHEREAS, the City of St. Louis Park applied and was approved to participate in this
program with the first reimbursement of funds received on January 12, 2011 and;
WHEREAS, due to program requirements, we are prohibited from using reimbursement
funds as general revenue and must be able to demonstrate that funds (including any interest
accrued) were used exclusively to reduce or offset increases in plan participants' health benefit
premium contributions, copayments, deductibles, coinsurance, or a combination of these costs
and;
WHEREAS, we will continue to participate in ERRP with any funds remaining after this
ERRP premium reduction banked for future disbursements. If this disbursement method is
successful, and no other methods are recommended, the City Manager is authorized to approve
future premium disbursements. If the disbursement method is recommended to change, staff will
present the updated program to Council for review and approval.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of St. Louis
Park that the following method for ERRP fund disbursement will be applied in 2011:
• The disbursement of funds received in January, 2011 will be applied to one month where
all premiums are reduced by $420 for each plan participant, and
• A plan participant is an individual that purchases health insurance from the City and is
required to pay a premium at the time the disbursement is issued, and
e appropriate City officials are hereby authorized and directed to make this change in
p. oll for the ERRP disbursement at a time approved by the City Manager.
Revie
for • dministration:
by the City Council March 21, 2011
Cit
Attest:
City Clerk
May