5440 RESOLUTION NO. 5,440
A RESOLUTION AUTHORIZING UNIFORM FIREFIGHTERS TO EXECUTE
AN AGREEMENT FOR HOSPITALIZATION INSURANCE FOR ALL UNIFORMED
FIREFIGHTERS.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
LITTLE ROCK, ARKANSAS.
SECTION 1 . The Uniformed Firefighters of the City of Little
Rock are hereby authorized to execute an agreement with White and
Company, as the employee bonded administrator, for the purpose of
purchasing group hospitalization insurance from the General
American Life Insurance Company whereby hospitalization insurance
shall be provided for all uniformed Firefighters of the City of
Little Rock Fire Department . (Outline of agreed coverage
Attachment A. )
SECTION 2. The City shall provide per uniformed Firefighter
to the bonded administrator above, premium payments at the rate not
to exceed the per employee rate paid other employees for Group
Hospitalization coverage.
SECTION 3. This resolution shall be in full force and effect
from and after its adoption subject to review based upon the con-
ditions of Attachment B.
ADOPTED: November 4, 1975
ATTEST: APPROVED: 4'76- Z/11441144111
C261C7;f1ClerkYtiti
Mayor
ATTACHMENT A
LITTLE ROCK FIRE DEPARTMENT
New Group Insurance Plan for Uniformed Employees
A new group insurance plan will go into effect November 1 , 1975 for, uniformed
members of the Department. The details of the plan are:
Cost Contribution by the City
The City will continue to pay the same dollar amount for employee
coverage as they have in the past. The employee will pay for
dependents if he elects to insure them and the City will make pay-
roll deductions for this amount.
Master Policy Holder
The City has authorized the International Association of Fire Fighters ,
Local 34, to act as Master Policy Holder in behalf of all uniformed
members.
Administration
The plan will be administered by White and Company who is also
administrator of the Little Rock Fire Department Health Fund, Inc.
Claims
Claims will be paid locally by the Insurance Carrier, General American
Life Insurance Company whose claims office is located in the Gaines
Place Building , Third and Gaines Streets , Little Rock , Arkansas.
Outline of Coverage
Life Insurance
$2500 on each uniformed member.
Accidental Death and Dismemberment
$2500 in the event of accidental death or loss of both hands , feet
or eyes and one-half that amount for loss of one member. This covers
non-occupational accidents only.
Health Insurance
Comprehensive major medical benefits on employees and eligible de-
pendents. This plan is described on the following page.
Monthly Cost to Employee
Coverage on Employee Only None
Dependent Coverage $23.80
I
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LITTLE ROCK FILL: DFPARIMLNT
Outline of Health Insurance Benefits
Benefit Area Description
Benefit Maximum $250,000 per person lifetime maximum with a $2,000 automatic
annual reinstatement.
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Deductible $100 calendar year deductible. Covered expense for all
causes applies toward satisfying this deductible. Only one
deductible per calendar year is required per individual with
a maximum of three per family.
Hospital Pays 100% of the first $2,000 of hospital charges. ('The
hospital room is included at the hospital ' s average semi-
private rate. ) The plan then pays 80% of further hospital
charges. Out-patient accident treatment is covered at 80%.
Surgical ,9 Pays 80% of usual , customary and reasonable charges for the
Anesthesia & area.
Pathology
All Other Covered Pays 80% of usual , customary and reasonable charges including
Charges surgical , anesthesia , medical , laboratory, x-ray, prescription
drugs , registered nurse, etc. (Includes covered charges in or
out of hospital . )
Convalescent
$21 .00 per day up to 60 days.
Nursing Home
Maternity No coverage is provided for normal or Caesarean delivery or
miscarriage. (Coverage is available through Little Rock Fire
Department Health Fund , Inc. ) Regular benefits are provided
1 for complications of pregnancy including intra-abdominal
surgery, pernicious vomiting or toxemia.
"Stop Loss" The "Stop Loss" Provision increases coverage from 80% to 100%
Provision after $5,000 of covered expenses have been incurred-resulting
in a maximum cost of $1 ,100 on any covered person in any one
calendar year.
Coverage for Members retiring after May 1 , 1975 may continue group coverage
Retired Members at group rates on themselves (and eligible dependents) to the
member' s age 65.
Dependents of Coverage-on insured dependents of deceased members will be
Deceased Members continued at no cost for three years after the death of the
member.
This outline is not a certificate of insurance. Please refer to your certificate for
details.
Claim Example Comparison
Claim Example:
. Gall Bladder Removal - 10 days in Hospital - No Complications
Expenses City Plan New Plan
Hospital Room
10 X $58.00 : $ 580.00 10 X $40 $ 400.00 $ 580.00
80% of excess : 144.00
Hospital Extras 280.00 100% 280.00 280.00
Surgical 600.00 80% of 420.00 336.00 80% of $600 480.00
Anesthesia 125.00 80% of 56.00 44.80 80% of $125 100.00
Pathology 25.00 80% 20.00 80% of $25 20.00
Radiology 75.00 80% 60.00 80% of $75 60.00
Medical Charges
Initial Office
Visits (3) 45.00 36.00 36.00
Follow Up
Visits (2) 30.00 24.00 24.00
Prescription Drugs 28.00 22.40 _ 22.40
$1 ,788.00 $1 ,367.20 $1 ,602.40
Less Deductibles Less Deductible
Hospital 50 .00 Major Medical 100.00
Major Med. 100.00
Paid By Plan $1 ,217.20 $1 ,502.40
Cost To Insured $ 570.80 Cost To Insured $ 285.60
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LITTLE ROCK FIRE DEPARTMENT HEALTH FUND, INC.
Outline of Supplementary Health Insurance Benefits
The Health Fund has long been operated as a supplementary plan to supple-
ment benefits provided by the City Employee Group Insurance Plan. Health
Fund Benefits are being revised effective November 1 , 1975 to provide
benefits to supplement the new group insurance plan effective that date.
Health Fund Benefits will be:
Major Medical Deductible
The Fund will pay the $100 calendar year deductible once it has
been satisfied and Major Medical benefits have been paid by the
basic plan.
20% Co-insurance Cost to Employee
The Fund will pay the 20% of expenses payable by the employee
under the basic plan.
Out-patient Accident Expenses
The Fund will waive the deductible (regardless of whether it is
satisfied under the basic plan) and pay expenses incurred that are
not paid by the basic plan.
Maternity Benefits
The Fund will pay the following Maternity Benefits :
Normal Delivery $325.00
Caesarean Delivery $600.00
Miscarriage $150.00
Health Fund Monthly Dues
The Monthly Dues structure will be as follows :
New Health Fund Dues Old Health Fund Dues Increase
Single $ 4.07 $3.92 $ . 15
Man and Wife $ 7.28 $5.88 $1 .40
Family $10.26 $8. 50 $1 . 76
In all instances , provisions of the basic plan will be followed by the Health
Fund in determining benefits.
ATTACHMENT B
CITY OF LITTLE ROCK
George Wimberly,Mayor
Perleste "Les" Hollingsworth,Vice Mayor
Charles Burney, Director
4. r4%
Jim Dailey, Director
4 A. M."Sandy" Keith,h, D
irec}or
Vpo Dwight Linkous, Director
S 174 w
.'+5'.�J' Jack Young Director
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LITTLE ROCK, ARKANSAS
November 4, 1975
Mr. John Uekman, President
Local 34
International Association of Firefighters
27 Allyson Circle
Little Rock, Arkansas
Dear Sir:
Contingent upon approval of a Resolution by the Board of Directors granting
Uniformed Firefighters of the City of Little Rock Fire Department the authority to
purchase a Group Hospitalization plan for all uniformed Firefighters, I do hereby
approve such action with the following conditions :
1.) No increase in the premimum rate for the City's Group Hospitalization
Plan due to severance of Uniformed Firefighters, from that group plan.
2.) Assumption of administrative accountability by Uniformed Firefighters.
3.) No valid complaints from firefighters due to dissatisfaction with the
plan.
4.) The City shall not be placed in a position of excessive fragmentation
by employee groups as a result of this action.
5.) The City shall be provided a copy of the Master Contract between the
Firefighters and the employee bonded administrator.
Continuation or renewal of this agreement shall be subject to review by the
City Manager relative to the conditions stipulated above.
Sincerely,
Carleton E. McMullin T_
CEM:lc City Manager
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