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HomeMy WebLinkAbout162661 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 9 ORDINANCE NO. 16,266 AN ORDINANCE TO AUTHORIZE THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH BLUE CROSS AND BLUE SHIELD OF ARKANSAS TO PROVIDE INSURANCE COVERAGE TO QUALIFIED LITTLE ROCK STUDENTS FOR DRUG AND ALCOHOL ABUSE TREATMENT; WAIVING COMPETITIVE BIDDING; AND FOR OTHER PURPOSES. 523 WHEREAS, the City of Little Rock declared in Little Rock, Ark., Ord. 16,086 (August 20, 1991), its intent to combat the proliferation of drug and alcohol abuse by teenagers and at -risk youth; and WHEREAS, one aspect of this program is assuring that students that suffer from the effects of alcohol or substance abuse receive appropriate medical treatment; and WHEREAS, in this first year of the program has treated over 200 students for the primary and secondary effects of drug and alcohol abuse; and WHEREAS, the Fighting Back program has determined that these initial results are indications of a successful effort to combat drug and alcohol abuse affecting Little Rock citizens of school age; and WHEREAS, Arkansas Blue Cross and Blue Shield, a Mutual Insurance Company, ('Blue Cross") has agreed to provide such insurance and is the only company that has taken the steps to get an insurance program approved by the Arkansas Insurance Commission; and WHEREAS, it is impractical and unfeasible to subject this insurance contract to competitive bidding under the present circumstances. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: SECTION 1. After consideration of the information provided it, the Board of Directors find that the further implementation of a program to counter the effects of drug and alcohol abuse, particularly of school age children, fulfills a valid and vital public purpose. SECTION 2. The City Manager is authorized to enter into a contract with the Little Rock School District and Blue Cross, in 0 -59 C— ('o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 524 a form substantia ly the same as that attached as Exhibit A to this ordinance, for the purpose of providing qualified City students with appropriate health care for drug and alcohol treatment. SECTION 3. Because Blue Cross is the only company that has to date developed a policy of this type that has been approved by the Arkansas Insurance Commission, and because Blue Cross has worked so closely with the Little Rock School District and the Little Rock, Arkansas, Fighting Back program, the Board finds that it is impractical and unfeasible to subject this contract to competitive bidding; therefore, the requirement of competitive bidding is waived. SECTION 4. EMERGENCY CLAUSE. Drug and alcohol abuse is a severe problem directly affecting the health, safety, and welfare of all citizens but particularly school -age children in the City of Little Rock. This insurance programs needs to be in place for the beginning of the 1992 -1993 school year which begins on August 31, 1992, as one means of helping to eradicate the devastating effects that alcohol and drug abuse have on the classroom. Therefore, this ordinance shall be in full force and effect from and after the date of its passage. PASSED: August 18, 1992 (a e -� APPROVED 0 CITY CLERK AS TO FORM: e- is .rte �- THOMAS -•1'i 01 5T CITY ATTORNEY ...� .� •• • FIGHTING BACK! E ARKANSAS BLUE A MUTUAL v IBIT "A" 525 LANKET INSURANCE CONTRACT WITH CROSS AND BLUE SHIELD, INSURANCE COMPANY This is an agreement among Arkansas Blue Cross and Blue Shield, A Mutual Insurance Company, hereinafter referred to as "Insurer ", "we" or "us ", whose home office is located at 601 Gaines Street, Little Rock, Arkansas and the Little Rock School District, hereinafter referred to as "District," "you" or "your," whose Administrative Office is located at 800 West Markham, Little Rock, Arkansas, and the City of Little Rock, hereinafter referred to as "City ", whose offices are located at 500 West Markham, Little Rock, Arkansas. ARTICLE I. WE AGREE: - In consideration of the District's and City's execution of the Application for Insurance and of the premium set forth in Schedule A, attached hereto, Insurer agrees to provide Qualified Students insurance coverage for drug and alcohol treatments subject to the following terms and conditions: SECTION I. Definitions A. Plan: The Plan is the School Drug Insurance Program, described in this Agreement, designed by Insurer for Qualified Students of the District. B. Student: A Student is an enrolled, full -time student of the District in grades K -12, during the time this Agreement is in force, certified as such by the District. BIC 526 C. Gatekeeper: A designated person or persons who has the Cnecessary training, certification and experience to evaluate the drug or alcohol abuse patterns of Students to determine if eligible Students qualify for the benefits available under the Plan. This person or persons will be employed by the District. D. Oualified Student: A Student that has been determined by the Gatekeeper to qualify for services available under the Plan. E. Designated Provider: A health care institution, located in the same county as District, which is licensed and qualified to render treatment for alcohol and drug abuse and which has entered into an agreement with Insurer to participate in the Plan. SECTION II. Benefits A. Up to $360.00 per Qualified Student for Level 1 Treatment by a Designated Provider, Education and Counseling: Treatment consists of (a) two one -hour group sessions per week for up to four weeks, if necessary, and (b) one one -hour private session and three two -hour group sessions with the Qualified Student's family. B. Up to $1,500.00 per Qualified Student for Level 2 Treatment by a Designated Provider, Intervention Group Therapy: Treatment consists of (a) an initial assessment, (b) three one -hour group sessions, per week for up to eight weeks; (c) follow -up with two -hour group or one -hour individual sessions each week for six months; (d) one one -hour private session and up to six two -hour group sessions for the Qualified Students's family. BIC 2 527 C. Up to $4,000.00 per Qualified Student for Level 3 Treatment by a Designated Provider, Limited Residential Care: Treatment consists of (a) social, physical and psychological assessment of the Qualified Student; (b) twenty -four hour residential care for no more than seven days; (c) after residential care, three -hour group sessions three times a week for six months; (d) three one -hour private sessions and six two -hour group sessions for members of the Qualified Student's family; (e) periodic drug screening and (f) for Qualified Students with severe chemical dependency, inpatient detoxification for up to three days. D. Up to $13,500.00 per Qualified Students for Level 4 Treatment by a Designated Provider, Intensive Residential Care: Treatment consist of (a) twenty -four hour supervised residential living up to ninety days; (b) after care one one -hour individual session per week or one two -hour group session per week for six months; (c) Level 3 treatment components (a), (d), (e) and (f). SECTION III. Limitations A. No benefits are provided under this Contract to any student other than a Qualified Student. B. No benefits will be provided for admission of a Qualified Student in Level 3 Treatment more than once during a twelve month period. C. No benefits will be provided for admission of a Qualified Student in Level 4 Treatment more than once during a twelve month period. BIC 3 528 D. No benefs will be provided for •Qualified Student's Level of Treatment which is not started while this contract is in force. E. No benefits will be provided for a Qualified Student's Level of Treatment which is not provided by a Designated provider. SECTION IV. Other Insurance A. Designated Providers have agreed to accept payment under the Plan as payment in full. B. If any of the benefits under the Plan are available to a Qualified Student under any other individual, group or blanket disability insurance policy, health maintenance organization plan, union welfare plan, employer or employee benefit organization, self- insurance or any other non - regulated group disability benefit plan, benefits of.the Plan will be reduced when the sum of: 1. Benefits that would be payable under the Plan in the absence of coverage of the Qualified Student's other insurance; and 2. The benefits that would be payable under the Qualified Student's other insurance, in the absence of the Plan, exceed the maximum Benefit, set forth in Section II. of this Contract, for the Qualified Student's Level of Treatment. In that case, the benefits of the Plan will be reduced so that they and the benefits payable under the other insurance do not total more than the maximum Benefits set forth in Section II. of this Article for the Qualified Student's Level of Treatment. SECTION V. Other Provisions BIC 4 r 0 529 A. As a condition of coverage, District authorizes Designated Providers to furnish Insurer, its agents, or any of its subsidiaries, upon request, all records, or copies thereof, relating to services provided under the Plan. B. Notice and Proof of Claim 1. You must submit written proof of any treatment received by a Qualified Student under the Plan not later than December 31 of the calendar year following the one in which such treatment was received. 2. We shall furnish you such forms as are usually furnished by us for filing proof of claim. If such forms are not so furnished within fifteen (15) days after you give us written notice of treatment of a Qualified Student, you shall be deemed to have complied with the requirements as to proof of claim upon submitting within the time fixed for filing proof of claim (subparagraph 1. above), written proof covering the occurrence, character and extent of loss for which claim is made. 3. Benefits payable under the Plan will be payable immediately upon receipt of written proof of claim. C. Legal Actions. No court suits shall be brought to recover from the Plan before sixty (60) days after written proof of claim has been furnished in accordance with the requirements of this contract. No legal action shall be brought after the expiration of three (3) years from the time written proof of claim is required to be furnished. BIC 5 530 ARTICLE II. UNLESS OTHERWISE AGREED IN WRITING, THE CITY AGREES: SECTION I. To pay us the premium charges set forth in Schedule A of this Contract. SECTION II. That the District is the member of Arkansas Blue Cross and Blue Shield with authority to act in accordance with Article V. of this Contract. ARTICLE III. UNLESS OTHERWISE AGREED IN WRITING, THE DISTRICT AGREES TO: SECTION I. Act as the agent for your Students (not of us) in all dealings between us and such Students including: A. Notifying us of changes in Students' status; B. Provide notice to us of a Student's acceptance into the program, which Designated Provider and Level of Treatment. C. Providing Students all communications and notices from US. SECTION II. Employ and train the Gatekeeper. SECTION III. Hold Insurer harmless against any claims or liability which may arise as a result of Gatekeeper's determination of Designated Provider or Level of Treatment. ARTICLE IV. ALL PARTIES AGREE: SECTION I. This Blanket Insurance Contract and the accompanying application constitute the entire contract among the parties. All statements by you shall be deemed representations and not warranties, unless there is fraud. No statement will be used to void coverage or reduce benefits unless it is contained in a written application. BIC 6 531 SECTION II. We may amend the terms of is Contract. If we do so, we will give 30 days written notice to you. Such change shall be effective on the date fixed in the notice. Unless all of the parties agree to another date, any change in benefits and premiums shall occur on the anniversary date. SECTION III. Any of the parties can cancel this Contract by thirty days written notice to the others. We cannot cancel before the last day of any period for which we have received premiums. ARTICLE V. POLICY PROVISIONS RELATIVE TO MEMBERSHIP, MEETING AND VOTING. SECTION I. Annual Meeting. An annual meeting of the members shall be held each and every calendar year in the State of Arkansas for the purpose of electing directors, receiving and considering reports as to -the. business and affairs of the Corporation, and transacting such other business as may properly come before the meeting. The meeting shall be held between January 1 and April 1 of each year at such place, date and time as shall be fixed by the Board of Directors or the Chief Executive Officer. The Board of Directors may, from time to time, provide that the place, date and time of the annual meeting shall be set forth in the policy of members as provided in Article III, Section 3 of these ByLaws. (THE ANNUAL MEETING OF THE MEMBERS SHALL BE HELD EACH YEAR AT THE HOME OFFICE OF THE COMPANY ON THE THIRD THURSDAY IN MARCH AT 1:00 P.M. (PROVIDED, IF SUCH DAY SHALL BE A LEGAL HOLIDAY, BIC 7 532 THEN AT THE SAME TIME AND PLACE ON THE NEXT SUCCEEDING DAY WHICH IS NOT A LEGAL HOLIDAY)]. SECTION II. Special Meetings. A special meeting of members for any purpose may be called by the Board of Directors or Chief Executive Officer, and shall be called by the Chief Executive Officer or the Secretary at the request of members holding one - third (1/3) of the voting power entitled to vote at such meeting. Such request shall state the purpose or purposes of the meeting and no other business outside the scope of the stated purpose or purposes shall be transacted. Unless ordered by the Board of Directors, the time and place of each special meeting of members shall be determined by the Chief Executive Officer. SECTION III. Notice of Meetings. So long as each insurance policy issued by the Corporation sets forth the place, date and hour of the annual meeting of members, no notice of any annual meeting shall be required to be given to any member, regardless of the number or nature of proposals to be considered and voted upon at the annual meeting. If notice of the annual meeting is not set forth in each insurance policy, written or printed notice of the annual meeting and every special meeting of the members, stating the place, date, time and the purpose or purposes of such meeting shall be given to the members entitled to vote at such meeting not less than ten (10) , nor more than sixty (60) , days before the date of the meeting. All such notices shall be given, either personally or by mail, by or at the direction of the Chief Executive Officer or Secretary unless ordered by the Board of Directors. Notices BIC 8 533 which shall be mailed shall be deemed to be "given" when deposited L. in the United States Mail addressed to the member at the member's address as it appears on the records of the Corporation, with postage prepaid [first class mail, if the notice is mailed thirty (30) days or less before the date of the meeting), and any notice transmitted other than by mail shall be deemed to have been "given" when delivered to the member. SECTION IV. Ouoru m. Except as otherwise proviaea by applicable law, a majority of the members of the Corporation (present in person or by proxy) shall be necessary to constitute a quorum for the transaction of business at any annual or special meeting of the members of the Corporation. SECTION V. Voting Riahts. Each member shall be entitled to one vote for each policy held by him -upon each matter coming to a vote at meetings of members. Provided, a group policyholder shall be entitled to a number of votes equal to the number of certificate holders insured under the group policy. Such vote may be exercised in person or by written proxy. SECTION VI. Vote Required. A majority of the voting power represented at any meeting of members shall be necessary and sufficient to approve any given matter. There shall be no cumulative voting. SECTION VII. Proxy. At all meetings of members a member may vote by proxy executed in writing by the member or by the member's duly authorized attorney in fact. Such proxy shall be filed with the Secretary before commencement of the meeting or at such later BIC 9 • • 534 time as shall be expressly permitted by the Corporate officer presiding at such meeting. Each application for an insurance policy issued by the corporation shall contain a provision pursuant to which the policyholder thereof grants a revocable proxy to the Board of Directors with respect to all matters to be considered and voted upon by members at any meeting for the term of such insurance policy. BIC 10 ARKANSAS BLUE CROSS AND BLUE SHIELD, A MUTUAL INSURANCE COMPANY 601 Gaines Street Little Rock, Arkansas 72201 (herein called the Company) BLANKET INSURANCE APPLICATION AND PROXY COMPANY, IN CONSIDERATION of the application made by LITTLE ROCK SCHOOL DISTRICT (herein called the District) M Blanket Insurance Contract Number 1 and in consideration of payment by the City of the charges as herein provided in Schedule A, agrees to provide the benefits described in the Blanket Insurance Contract. This agreement shall be for a period of Twelve (12) months beginning at 12:01 a.m. on August 24, 1992, (the Effective Date) to August 24, 1993, (the Anniversary Date) and from year to year thereafter, unless the Contract is canceled as provided therein. The premiums shall be paid in advance of the Effective Date and thereafter as provided herein. This Application is made and delivered in the State of Arkansas. It is governed by the laws of such and is subject to the terms and conditions of the Group Contract, which is a part of this Application by reference. Signed at Little Rock, Arkansas, this �/ tf day of 1992. 7- ARKANSAS BLUE CROSS AND BLUE SHIELD, A MUTUAL INSURANCE COMPANY Authorized Signature BIC 11 LITTLE ROCK SCHOOL DISTRICT Authorized Signature 535 10� own PROXY 536 I hereby appoint the Board of Directors ( "Board ") of Arkansas Blue Cross and Blue Shield, A Mutual Insurance Company ( "Company ") as my proxy to act on my behalf at all meetings of members of the Company. This appointment shall include such persons as the Board may designate by resolution to act on its behalf. This proxy gives the Board, or its designee, full power to vote for me on all matters that may be voted upon at any meeting. The annual meeting of Members is held each year at the home office of the Company on the third Thursday of March, at 1:00 o'clock p.m. beginning March 17, 1988. If the third Thursday of March is a legal holiday, then the meeting will be at the same time and place on the next day after, which is not a legal holiday. Special meetings may be called upon notice mailed not less than ten (10) nor more than sixty (60) days prior to such meeting. This proxy, unless revoked, shall remain in effect during my membership in the Company. I may revoke this proxy in writing by advising the Company of such at least five (5) days prior to any meeting. I may also revoke my proxy by attending and voting in person at any Member's meeting. 800 West Markham, Little Rock, Ar. Address LITTLE ROCK SCHOOL DISTRICT By: ignature and Title Dated this 7 1 "j - day of C( (a_/� t!¢ 1992. BIC 12