HomeMy WebLinkAbout15.F.7. Firefighter Insurance
JS. F; I~
CITY OF SHAKOPEE
Memorandum CONSENT
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Firefighter Insurance
DATE: July 14, 2004
INTRODUCTION:
The Council is asked to authorize an increase in benefits for specialized health insurance
for Shakopee Firefighters.
BACKGROUND:
At the last City Council meeting, a question regarding firefighter work comp issues was
raised by Councilor Lehman.
Earlier, staff and a member of the League of Minnesota Cities Insurance Trust had met
with the firefighters to discuss their concerns on work comp, and why certain heart-
related incidents have been denied coverage by the work comp carrier.
Weare researching what can be done to address the firefighters concerns, but there is no
a final resolution at this time. We will continue to work on this. However, Work Comp
is a State law issue that involves all employers and 3500 insurance companies doing
business in Minnesota; it is not just the Shakopee Fire Department and the LMCIT.
One thing that the City can do to address part of the concerns is to look at the insurance
that is provided by the City for heart and circulatory malfunctions. This had recently
been renewed by the City Council at the same benefit rates as had been in previous years.
In that, the maximum amount of the coverage was $10,000, which is useable when Work
Comp does not cover an injury. In addition, there was a disability benefit that
compensated the firefighter for time away from hislher normal place of employment for
52 weeks.
After talking with the City's insurance carrier, we were able to negotiate an increase of
the maximum benefit to $100,000, and that the weekly benefit for disability payment
would be 104 weeks, rather than 52 weeks. Note that this insurance still does not cover
items that should otherwise be covered by work comp; however it is an added benefit that
can be offered the firefighters.
BUDGET IMPACT:
The premium for the old benefit was $2602 (already approved by Council). The increase
in premium is $900 over the next three years, or $300 annually.
Please note that because Hartford needed a response by July 9th (only a few days
following the July 6th City Council meeting), I proceeded to authorize them to add this to
our coverage. Therefore, Council's action at this time would be to affirm the increased
benefit and premium.
RECOMMENDATION:
I recommend that the Council affirm the increase in the heart or circulatory malfunction
benefit through Hartford Insurance.
ACTION REQUIRED:
If the Council concurs, it should, by motion, affirm the increase in benefit for heart or
circulatory malfunction for the Shakopee Fire Fighters, to go to $100,000 maximum
benefit, and increase the disability benefit to go to 104 weeks, as provided by Hartford
Insurance.
~vl"AJ~
Mark McNeill
City Administrator
MM:th
CC: Gregg V oxland
Terry Stang
THE fI
HEART OR CIRCULATORY MALFUNCTION BENEFIT HARTFORD
eath Benefit: We 'will pay the principal Sum for this Benefit, if an Insured Person:
a) sustains Injury, as defined in this Benefit; and
b) dies within 180 days of the date of Emergency Duty from such Injury.
:edical ExpenSe Benefit: We will pay the Reasonable Expenses:
a) not to exceed the Maximum Benefit Amount for anyone occurrence; and
b) in excess of the Deductible Amount;
or Medical Care incurred by an Insured Person due to Injury as defined in this Benefit.
:uch expenses must be incurred within 52 weeks after the date of Emergency Duty.
Ie will not pay expenses for which benefits are payable under:
a) Workers' Compensation; or
b) similar law.
rotal Disability Ben~fit: We will pay the Weekly Benefit Amount for each week of an
Insured Person's period of continuous Total Disability. Such period of continuous Total
Disability must:
a) result from Injury as defined in this Benefit; and
b) commence within 30 days after the date of Emergency Duty; and
c) require the care of a legally qualified physician other than the Insured Person.
We will not pay this Benefit:
a) after the period of Total Disability under this Benefit exceeds the Maximum
Payment period; or
b) when a Weekly Benefit Amount is payable under the Accident Total Disability
Benefit in the policy.
For Total Disability of less than one week, one-seventh of the weekly benefit will be
payable per day.
The Weekly Benefit will be the lesser of:
a) the amount shown in the schedule; or
b) 70 percent of the Insured Person's Average Weekly Wage, reduced by:
1) any Other Income Benefits to which the Insured Person is entitled, including
any that could be collected if application for the benefit were made;
2) 50% of income from Rehabilitative Employment;
3) all income from any employer or from any work.
The Insured Person's Weekly Benefit will not be reduced by Other Income Benefits to less
than a $100.00 minimum weekly amount.
~ct44~ 2- ;M. /L
Christine Hayer Repasy. Secretary Thomas M. Marra. President
Form SRP-1330 CA-2 (HLA) 11/94
,....- . -,..- - ~ :---:- -~ r ....- ---- - ---------.----.
ebabilitative Employment . . THE.
'Benefit: Covered: See Beneh tHARTFORD
Heart or Circulato:ry
Malfunction Benefit:
neath Benefit : Principal SUm: $10,000.00
Accelerated Benefit
(Living Benefit Option): Principal SUm: See AD&D Benefit
Maximum Benefit Amount: $12,500.00
CLASS 2: BENEFITS
Accidental Death and
Dismemberment Catastrophic
Loss Benefit: Principal SUm: $10,000.00
~44-r 2- ~ ;L
Christine Hayer Repasy. Secretary Thomas M. Marra, President
Form PA-8682 (HLA) 11/94