COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING BEFORE THE COMMITTEE ON LAW AND GOVERNMENT - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, June 21, 2000 1:10 p.m. - - - Resolution No. 000476 - - - PRESENT: COUNCILMAN DAVID COHEN, Chair COUNCILMAN ANGEL L. ORTIZ, Vice Chair COUNCILWOMAN JANNIE L. BLACKWELL COUNCILMAN MICHAEL A. NUTTER COUNCILMAN FRANK RIZZO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters 1835 Market Street, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2 6/21/00 LAW & GOV'T - BILL 476 I N D E X WITNESS Linda Seyda . . . . . . . . . . . . . . . . - - - 6/21/00 LAW & GOV'T - BILL 476
Good morning, ladies and gentlemen. This is Tim Kearney, the legislative aide for City Councilman David Cohen who is the Chairman of the Law and Government Committee, and Councilman Cohen is delaying the Law and Government Committee, which was supposed to meet now at 11:00 a.m., until 11:30 a.m. there will be a short delay in the beginning of the Law and Government Committee. It will start about 11:30 a.m. Thank you. - - -
Good morning. This is the legislative aide for City Councilman David Cohen who is Chairman of the Law and Government Committee. I want to announce that the Committee on Law and Government will be postponed another half an hour. The committee meeting will take place at 12 noon because of Councilmembers being tied up in a briefing. So the Committee on Law and Government scheduled for 11:00 a.m. will be postponed for another half hour. It will take place about 12 noon. Thank you. 4 6/21/00 LAW & GOV'T - BILL 476
This is the clerk for the City Council Committee on Law and Government. Due to a briefing that's taking place across the hall, the Committee on Law and Government will be -- that was scheduled for 11:00 a.m. today will be postponed another half an hour. The Committee on Law and Government will start the meeting about 12:30. Thank you. - - -
This is the clerk for the Committee on Law and Government. The hearing before the Committee on Law and Government will be postponed for another half hour. The committee hearing today of the Law and Government Committee will take place at 1 o'clock due to a briefing with Councilmembers across the hall. - -
This is the Law and Government Committee. The committee is about to resume. Would all the members please come to the main chambers; Councilman Ortiz, Councilman Nutter, councilwoman Blackwell, Councilman Rizzo, Councilman Good, Councilman Mariano, Councilman Longstreth. I think they're all the members. If I've left anybody 5 6/21/00 LAW & GOV'T - BILL 476 out, please come to the chambers and complain. That way we'll be about to count you as a member of the quorum. Very astute. Well, let's see if it produces results. We appreciate everybody waiting. We really regret holding you up. It was an historic meeting, the first time in many years, of state elected officials and council officials getting together to discuss the problem of the school system and how we deal with the financial problems that it has. So we regret holding this meeting, but the other meeting started at 10:00, was scheduled for an hour. It almost took three hours, but it's a good long step forward. As soon as we get a quorum we will be beginning. Councilwoman Blackwell has already been here, Councilman Ortiz is entering the room, that's two, with Blackwell three. We need Councilman Nutter who's still in --
Now we need one more. We need Councilwoman Blackwell and Councilman Rizzo, Mariano, Good, Longstreth. We need two, please, Councilman Nutter and Councilman Ortiz remain.
The Committee on Law 6 6/21/00 LAW & GOV'T - BILL 476 and Government is now in session for the purpose of holding a hearing on Resolution No. 476. The three zeros before it are unimportant. They're computer numbers not bill numbers. Commissioner Seyda, would you please come to the stand. Until the arrival of enough bodies to officially constitute a quorum, I'd like to go over with you what has been done informally in this morning's session. I will repeat for the record, my apology for holding everybody, but there was a 10 o'clock meeting between some elected officials at the state level, who come from Philadelphia, and Councilmembers dealing with the school crisis. And that meeting was scheduled to last an hour from 10:00 to 11:00, but it actually went to almost 1 o'clock, so we express our regrets. We're glad that you're staying and you're here. Councilman Rizzo is in his office, and we're told that as soon as he finishes a telephone conversation, he will be joining us. But in the meantime, Commissioner Seyda, did you this morning at my suggestion relayed my 7 6/21/00 LAW & GOV'T - BILL 476 staff members Shoshana Bricklin and Stanley Shapiro, did you produce documents that had been requested by you -- from you by me as chairman of the committee?
Yes. We took the opportunity this morning to go through your document request. We provided a substantial number of those documents to your staff this morning. There is some additional documentation that is still in the process of being prepared, and I believe that we have an understanding of just exactly what you're looking for and how and when it will be provided.
Well, what I'm looking for and I believe the committee is looking for is a whole series of things. We would like to know how contracts are negotiated between the City of Philadelphia and health providers, whether they be medical health providers, hospitals, prescriptions, whatever, who does the negotiating, what's the negotiating team. And we'd like to go back a number of years, and we requested a number of documents with respect to that. Is that accurate, Miss Bricklin?
For the record, yes. We would also like to know because it's come to our attention that there are other plans covering represented employees which seem to be superior to the plans covering non-represented and exempt employees, we're going to be, I think, interested in their concerns, were there documents with respect to that matter? Were there, Miss Bricklin? Let me ask you that Shoshana Bricklin.
To the differences between our plans and the plans of at least some of the represented groups in the City.
Were there documents with respect to retirees that were requested?
Yes. For the record, this is Shoshana Bricklin from the Technical Staff of City Council. 9 6/21/00 LAW & GOV'T - BILL 476 There were some documents requested about retirees, and at this point they're not totally included. Some of them will be included, provided by June 30th, and others no later than the end of July. With your permission, would you like me to go through what's --
Yes. I'm going to ask you, Miss Bricklin, now -- the Chair notes the presence of Councilman Rizzo, which now gives us a full quota; Councilman Ortiz, Councilwoman Blackwell -- where is Councilman Nutter? Is he -- he's here --
Well, he has been here, but we understood he had to take care of important business which will not detain him very long. But he has been here waiting for the meeting to start. And, Councilman Rizzo, I will declare that a quorum is here. And I'm going to ask Miss Bricklin to report on the status of the documents.
Thank you. Today Miss Seyda has produced for us the 10 6/21/00 LAW & GOV'T - BILL 476 names of the outside non-City employees who have negotiated or are negotiating City administered health plans, the contracts under which they receive compensation whether directly from the City or from the companies who received contracts and the amount of that compensation. That has been represented to be in a letter with the agreements attached, and we will review that to see whether all the information is there. She has also not -- she has not provided, but will provide this soon, the names of the city employees who have worked on City health plans, including the preparation of RFPs, and she will be able to do this prospectively as opposed to for prior contracts. Is that correct?
Right. Based upon the conversation that we had this morning, it is my understanding that you are interested in knowing what the additional cost is associated with reviewing RFPs, and that's retroactively very difficult to do. But what I did agree to was to provide a scenario in terms of what the cost would be for a 11 6/21/00 LAW & GOV'T - BILL 476 typical review of an RFP that we would put out on the street now and also to put on the record the basic process that the City has used in the past, which is to have a representative from a number of City departments, generally at the deputy level or senior administrative level within the City, to participate in the review process and to make recommendations.
In a situation where the City would put an RFP out on the street, we would then ask that the responses to the RFP be reviewed by group of senior City managers and then for that group to make a recommendation to the administration in terms of who the successful proposer should be.
We go through that process and then negotiations follow that recommendation. So the committee would review the responses to the RFP, makes a recommendation in terms of who the work should go to or who, generally, the provider should be and then 12 6/21/00 LAW & GOV'T - BILL 476 negotiations are conducted between the City and the provider.
And with respect to the formation of the RFP, what documents exist with respect to participation as to the formulation of the RFP?
It has varied. In some cases the RFP is put together by an outside consultant and then reviewed by the City before it goes out on the street. In some cases the RFP is developed internally within the City and then reviewed by -- generally, it would be the Mayor's office and then it would go out on the street.
Well, wouldn't it be possible to have records with respect to, say, the last five years on that as to what method was used and who did the reviewing?
We will provide the best information that we can. I don't know how far back that information exists at this point. Generally, the representation comes from the Finance Department, the Personnel Department, in some cases we've had risk management involved, we've had the Mayor's office involved, and we've had City 13 6/21/00 LAW & GOV'T - BILL 476 Council involved.
Well, we would like to get whatever information exists with respect to that. Now, there's one name that occurs very frequently, Mr. Manuel Stemitakus. As I understood it originally, when he appeared at council hearings, he was acting as a representative on behalf of Rite Aid. Was that a correct impression I had or was that wrong? And then I'm not sure what his capacity has been since. But he seems to be involved in at least the prescription phrase. I don't know whether he has any other role. But I don't know who he represents. Does he represent the City, does he represent Rite Aid, does he represent other companies, and are there other people like him from the outside that seem to be significant, steady participants in this process?
Mr. Stemitakus has represented the City for the proposals related to dental, optical and prescription coverages. He has not represented the City in terms of any medical programs, and he has really worked for the City on a 14 6/21/00 LAW & GOV'T - BILL 476 consultant basis for the -- basically, it's been the DOP contracts.
And by a City representative you mean he has done negotiations.
On behalf of the City. 15 6/21/00 LAW & GOV'T - BILL 476
All right. Does the City have anybody else that acts in that capacity?
I have worked actively in those processes and the Mayor's office has been involved in those processes as well.
There are no other outside consultants who have worked with the City on these programs to the best of my knowledge.
All right. Thank you. Miss Bricklin, I'm going back so that you can continue your questions with respect to the presentation documents.
And you have represented that you will provide by June 30th the actual contracts for the products provided in the City health plan for this year and for all the years that the flex plan has existed. Is that correct?
We are in the process of putting that information together and we will go 16 6/21/00 LAW & GOV'T - BILL 476 back as far as we can.
And can you also include in that the consultant contracts which were referenced by Councilman Cohen either for Mr. Stemitakus or any other consultants who have been negotiating on behalf of the City.
Let me at this point -- is Mr. Kearney here? Mr. Kearney, would you sit at the table and read what I have neglected to ask you to do before, the title of the resolution that this hearing is being held on.
Good morning -- good afternoon, I'm sorry. Resolution 000476: Resolution 25 authorizing the Committee on Law and Government to 17 6/21/00 LAW & GOV'T - BILL 476 investigate whether the City administered health plan currently and in the past has provided the most comprehensive and cost-efficient coverage to City employees for the premiums paid and whether the City could provide more comprehensive and less costly coverage to the approximately 8,000 employees and retirees currently covered by this plan if other options were pursued.
I just want to point out that, I don't know if Miss Seyda mentioned it, it's currently 10,644 employees, just to be accurate.
I believe that I can be responsive to your question. In the testimony that I prepared, I indicated that the City of Philadelphia administers benefits for approximately 10,600 active and retired employees. The difference between the 10,600 number and the 8,500 number is the number of retired employees who are beyond the four-year period that is paid for by the City, and so, therefore, the cost of their benefits is paid directly by those employees and not by the City. 18 6/21/00 LAW & GOV'T - BILL 476
Thank you. Incidentally, I also want to note the reason for this hearing today is because the Commissioner was a witness during the budget hearings and there was an agreement between Commissioner Seyda and myself, the Chairman of this committee, that instead of her testifying at that time, that her office would be cooperative in presenting the necessary documentation to the staff that I had assigned to do the work on finding out answers to a lot of questions that members of council had raised. Over the last four months, and I'm not going to try to prove anything, it just has been impossible for the staff to obtain very much in the way of significant information. The person to whom, apparently, the Commissioner had assigned the task of furnishing this information proved very uncooperative. And I did call the Commissioner who again assured me, I think about a month to six weeks ago, that that situation would be remedied, and again immediately we found that there was just no 24 way of cooperating. I have to tell you, Commissioner, that 19 6/21/00 LAW & GOV'T - BILL 476 the person said he was acting fully in accordance with your directions. I have no idea whether that's so or not, but we were unable to get any information. And for that reason, I had to introduce a resolution calling this hearing today and including the authorization for the committee to operate by subpoena power to compel the production of the documents. We're hoping that won't be necessary. I regret having to go through this procedure, but I could not figure out any other method of obtaining the information. So that's the basis for the hearing today, and we're trying to get the information so that the staff can make a study of what's needed. And that's why I'm emphasizing today the questions we're concerned about and the production of documents. Now, Miss Bricklin, have you --
May I ask you to continue so the record will disclose what's been presented.
You have, at our request, provided all of the flex booklets from the beginning 20 6/21/00 LAW & GOV'T - BILL 476 of the flex program up until now. So that has been complete. You have also provided the composite cost, the average monthly cost per subscriber of each product provided -- no, you didn't, that is in the material in the box -- for each year since the flex program has existed. We do not have at this point the methodology for how that was calculated, but I believe that that will be reviewed either in this hearing or in the summer. Is that correct?
We provided all of the rate information for all of the City products, and I believe we have in the past provided what the composite -- what I'm calling the composite cost of the plans, which is what the average City payment is per covered employee and retiree. In our discussion this morning you had some questions about the methodology that we used to develop that composite cost, and I believe we did talk through it and I indicated that we would provide some additional backup for you so that you could actually see the numbers. 21 6/21/00 LAW & GOV'T - BILL 476
And, additionally, we will sit down and work out the math together. Is that agreeable?
And I would like to add that you also provided us with some information that you had developed based upon information that had been provided to you previously and in the interim we will review that.
Yes. You also said that by June 30th you will provide the number of employees covered by the flex plan for each year since its inception, grouped by the union drops versus the non-represented employees and by family size. You've indicated that in terms of the retirees that would only go back as far as 1994, which will be fine for now. You also indicated that by June 30th you will provide the number of retirees, that is, the four-year retirees, who were covered under the flex program since its inception, grouped by size. 22 6/21/00 LAW & GOV'T - BILL 476 We did discuss that those employees who have been retired more than four years, we will get a break down of that sometime no later than the end of July. The final area we did -- is that correct?
Thank you. The final area we did not reach any resolution. You were requested, if possible, to provide us with any cost studies or comparisons of various products offered, including but not limited to any proposal by Blue Cross/Blue Shield indicating the cost of an exclusive contract with Blue Cross/Blue Shield. It is our understanding that Blue Cross/Blue Shield had prepared such a calculation some time back in the fall of '99.
I believe that I gave you a letter from Blue Cross indicating that we had not received such a quote, and I think that you have a letter that was addressed to me from a representative at Blue Cross.
We do have that letter. 23 6/21/00 LAW & GOV'T - BILL 476 I would like to also put on the record, as part of our discussion, I indicated to you that I did speak with Robert Seccus of Blue Cross/Blue Shield back in February of this year, and he indicated to me in a telephone conversation that he had prepared such a study. Is that your recollection of our conversation?
All I can say is there must be some miscommunication because we never received such information.
That may well be true, but I'm asking if that was your recollection of our conversation earlier before this hearing in terms of what I represented to you.
Yes, you did represent that to me. And since I didn't have that information, I did ask Blue Cross to provide me with that letter that I gave you today.
All right. We did have one other piece of information which was referred to in your printed testimony that you agreed to provide for us, which is the Mercer Foster Higgins National Survey of 24 6/21/00 LAW & GOV'T - BILL 476 Employee Sponsored Health Plans in 1999. And if you have that available, that would be very useful to have by the end of June, as well.
With respect to that other information, this committee will invite Mr. Seccus to appear before us and to either furnish the report that he told Miss Bricklin that he had prepared or to refused to do that or to give us information as to whether he sent it to you. I think it will be a feeling of this committee that no company should be dealt with if any officer refuses to cooperate with requests from City Council.
I'm sure that it's just a miscommunication or misunderstanding. But --
Well, wouldn't it be your impression that this material had been prepared by Blue Cross?
I have no reason to believe 25 6/21/00 LAW & GOV'T - BILL 476 that that information was prepared by Blue Cross.
And then why would they not sent send it to you? Assuming they sent it to you and it got lost in the mail or got lost somewhere in their own bureaucratic functioning, why would they not send you a copy of it? They must have a copy of it.
All right. I'm going to ask Miss Bricklin to continue her question.
Prior to this hearing we discussed whether the City had ever considered going with a complete Blue Cross/Blue Shield medical coverage. I would like to have you state for the record what the reasoning behind the City's not only offering Blue Cross/Blue Shield, given that Blue Cross/Blue Shield might provide additional savings to the City and to the employees who are subscribers to these plans. 6/21/00 LAW & GOV'T - BILL 476
Well, it has been the policy of the City, position of the City for a number of years that we should offer a variety of programs for our employees, and so we have worked in our negotiations with the providers to develop programs that are cost effective and still provide a range of options and choice as far as employees' medical coverage is concerned. I would add that, as you know, we're currently in negotiations with our employee organizations. And, of course, one of the things that we're looking at is to have all of our employees in one plan or one program, which includes a number of options, and that we feel that that is a way that we can provide the most cost-effective program for all City employees.
Are you aware that District Council 47 -- you should be aware, as you sit on their Health and Welfare Board, that they made a decision as a cost-saving measure to only use Blue Cross/Blue Shield medical programs for their insurance?
And you also are aware 27 6/21/00 LAW & GOV'T - BILL 476 that the choice of -- the predominant choice in the City administered plan are Blue Cross/Blue Shield products. I believe on your information over 70 percent of the subscribers, the employee subscribers, are subscribed to one of three Blue Cross/Blue Shield products. Is that correct?
Yes, it's approximately 70 percent. The other 30 percent are in an Aetna US Healthcare product, and have been for many, many years. I believe the City was --
I'd like to just go to our prescription plan, because, in that instance, the City plan employees have no choice. At this point we are all required to be part of the Rite Aid prescription plan, which I believe is now a subsidiary of Eagle Managed Care. Is that correct?
No, that is not exactly correct. The prescription program is managed by PCS which is a pharmaceutical benefit manager, a very large firm. They're located in Arizona. They have clients all over the country. They are a subsidiary of Rite Aid at the present time, I believe. 28 6/21/00 LAW & GOV'T - BILL 476
Well, I'd like to have you put on the record why in the case of the prescription plan the employee subscribers have no 5 choice. They can go to a Rite Aid subsidiary as opposed to the medical programs where it appears that the City philosophy is to provide a large choice of options, regardless of the cost factor involved.
Well, with the pharmaceutical program, the network includes independent pharmacies in the City of Philadelphia as well as Rite Aid. So it is broader than just the Rite Aid stores.
How many independent pharmacies and how were they selected to be part of the network?
Well, I believe that that goes back to some, I guess, negotiations about five or six years ago. And I believe it was at the request of City Council that that network be broadened on include independent pharmacies within the City of Philadelphia, and I believe that this committee or members of this committee were very active in pursuing that. 29 6/21/00 LAW & GOV'T - BILL 476
Can you provide this committee with the substantiation of that assertion by Friday, and also the list of the independent pharmacies that are part of the Rite Aid prescription program.
I believe that we have done that before, but I will be more than happy to provide it.
At this point, for the members of the committee, the Chair has completed the questioning necessary to permit our staff to move ahead with its work for further hearing. Now, are there any members of the committee that wish to ask any questions at this time? Miss Seyda, at this point we're going to say there are no further questions to be asked of you at this point, because I think it's important for the staff to do its work. All right?
Now, with respect to others who may have come as witnesses, it's not the intention of the Chair to call anybody else as a 30 6/21/00 LAW & GOV'T - BILL 476 witness today, because we think it's necessary for the staff to go through the documentation presented so that we can deal with that directly. And at the next hearing -- and I can't give you a date on it until we get the rest of the documentation and the staff has the opportunity to study it, but we very much appreciate your cooperation in coming today and being prepared to testify. I do have one last question, Miss Seyda. Is it not a fact that you are the City's representative on the boards that operate the health plans of the represented organizations?
Yes. There are two boards that are related to the FOP, one for the medical coverage and the other one for a retiree benefit; likewise, that there are two boards attached to Local 22 YAFF, one for the medical coverage and the 31 6/21/00 LAW & GOV'T - BILL 476 other for retiree program; and I also sit on boards for the two non-uniformed unions.
Now, you sit on each of those boards in your capacity as Director of Personnel or Commissioner?
As a result of appointment by the Mayor, is that what you said?
And as a result of that, you will have information about all of the other plans which receive financial support from the City. Is that correct?
Why do you put it that way? Why wouldn't you, as board member, be fully informed as to whatever action those groups take? 32 6/21/00 LAW & GOV'T - BILL 476
Well, for example, in the case of the Fraternal Order of Police, I sit on a joint trust board, but then that joint trust board then funds programs that are then administered through three other trusts where there is no City representation. So it's a very complicated administrative structure, which is one of the reasons that the City believes that we would be better positioned to have one program as opposed to a multitude of different programs and different funds and different administrative structures, et cetera.
Well, the City, I guess, has had many years in which to propose that, and that may be the City's position, but at the appropriate time we would want to, of course, hear from the various groups involved as to what their position is. And I have to tell you it's my feeling as Chairman of the committee that on the preliminary information we have, the City's plan is not the best plan, certainly not for the employees. I understand that there are some plans that the City finances in 33 6/21/00 LAW & GOV'T - BILL 476 the regular way that these funds are financed, these plans are financed. There's some in which there's no participation by employees and any co-op funding. I also understand that from the limited information we had it also seems as if the City's plan is not the least expensive of plans. Yet I think the group that you refer to as being covered by the City maybe larger than any of the other plans. It's certainly larger than most your larger -- certainly than the fire fighters. I think the City's plan is larger than District Council 47, FOP I'm not sure on the numbers, counting their retirees, District Council 33 may be larger, I don't know. So that this committee would be in no position to have any opinion with respect to even the economy of such a consolidation, and there may be a lot of other factors involved.
Well, yes, you have to take into consideration the fact that some of the funds are funded at a higher level than the City administered plan and that is the result of the interest arbitration process, and you also have to take into consideration that some of the funds have other sources of revenue over and above the money 34 6/21/00 LAW & GOV'T - BILL 476 that they have from the City.
Well, we understand that since your in the negotiating phase and since this subject may be a matter of negotiations, I'm deferring any questioning with respect to that, because I think bargaining ought to be done by the parties involved and not in any other fashion. But that's going to be part of the --
-- information we're going to be seeking down the road. Councilman Rizzo.
Miss Seyda, as Personnel Director of the City of Philadelphia, you and both Councilmen Cohen have referred to the City, the administration, of being the one that wants to consolidate these various health plans. Could you be more specific. Was this a consultant's recommendation? Whose idea is this?
This is the administration's position on the negotiation and arbitration process in which we are currently involved.
With respect to that 35 6/21/00 LAW & GOV'T - BILL 476 process, when does that process end? I know from, you know, from a long time ago that it seemed to me that sometimes this process drags on for a long time. Is my memory wrong on that or -- is there any schedule? Do they have dates that they set up for when whence things happen?
Yes, there is a schedule and we are very hopeful and optimistic that we will have contracts with all of our labor organizations in a timely way.
I would like to go back and see if I can get a more specific answer. Was this position by the administration developed as a result of outside influence, was it as a result of lobbying from another organization, was it a consultant that was hired to take a look at it? Could you just give us some background how this position was developed.
I really cannot be 36 6/21/00 LAW & GOV'T - BILL 476 responsive to that question. I'm sorry, but I just can't. I just do not know the answer.
Is that because you don't have any information or because you don't feel free to disclose information that you have? We respect confidences. We don't want to put you in an impossible position, but I think the question is fair to know what the basis is. Is it as a result of just the administration's -- change of administration, meaning a new policy? I never remember that during the last administration as ever having been stated. Without respect to whether I think it's good bad, I just never remembered and --
Well, actually, that was the City's position in earlier negotiation and arbitration processes going back as early as 1992.
Going back to my question, and, again, I would appreciate you trying to answer this. Has a consultant ever been engaged, paid for by the City of Philadelphia, to review this and 37 6/21/00 LAW & GOV'T - BILL 476 make a recommendation which helped to develop this position? I mean, that shouldn't be confidential.
We'd like to ask you to try to find out the information.
I mean, I just honestly do not know the answer to your question.
But we would like you to seek to determine whether or not you do have information in your office with respect to that.
I know that I do not have that information in my office, and I will ask the Mayor's office for their response to that question.
There is one 38 6/21/00 LAW & GOV'T - BILL 476 additional request at this point for documentation. I have to tell you that there may be additional requests as the staff studies this, because one may lead to another. But at this point there's one other request. We anticipate that we will have your cooperation in providing this information so that we don't have to use the subpoena process. Miss Bricklin, would you --
One last piece of information for now. We would like to have, if you could provide this committee, the number of subscribers per month on the City administered plan, let's just say for this fiscal year, as well as monthly invoices from the health providers. Is that something that you can provide for the committee?
Certainly, but could you repeat the question so I'm certain that I understand what you're asking for.
We'd like to know the number of subscribers per month, broken down on a monthly basis, that are part of the City plan, and, secondly, the copies of the monthly invoices from 39 6/21/00 LAW & GOV'T - BILL 476 the health providers for all of the products that we purchase as part of our health plan, health coverage for the year 2000, just the fiscal year 2000.
The way the City's payment process works, it is not done on an invoice basis. The City self bills, and the way that the City's computer system is set up is that at the beginning of each month it prepares a payment for each provider based upon the number of individuals who have coverage with that provider and then that payment is processed to each individual provider organization. All of its done on a self-bill basis.
That is information which is maintained by the City's Finance Department, and I will forward your request to them.
Miss Seyda, has there been any internal analysis done by the people that work with you to really look at this issue and determine what the cost savings could be if the recommendation of the administration were accepted? Do you have any really hard facts, good numbers -- I mean, it's hard for me to believe that we could do or even make a proposal like this without really crunching some numbers and understanding the issue. What exactly has been done to analyze this issue by the administration? And if you have those documents, we'd like to see them.
I will direct your question to the Mayor's office, because I know that there is work that has been done, and I will ask the Mayor's office, and specifically the Mayor's Chief of Staff, about your interest in receiving that information.
It's very difficult for me to understand how something like this could be pursued, if we didn't really know whether it was good, bad, whatever.
Absolutely. I understand your question, and I believe that there has been some communication between the Mayor's office and -- 41 6/21/00 LAW & GOV'T - BILL 476
Miss Seyda, what does the City do, if anything, with respect to the various authorities, Redevelopment Authority, Housing Authority, any of the -- PIDC paid, those groups? Does the City participate in any way in funding any of their medical plans?
And does the City play any role in the awarding of those -- the administration, when I say the City. Does the administration play any role in making the decisions with respect to those medical plans?
We have provided some consulting services to a couple of the authorities over the years, using the word consulting in just the very generic sense. 42 6/21/00 LAW & GOV'T - BILL 476 I know I have -- I have personally have done some work with the Parking Authority several years ago, I had some personal involvement in some of the School District negotiations a couple of years ago, but that was just on a -- very much on an ad hoc basis.
Does the City play any role in the administration of any of those plans?
Well, we may be interested in inquiring about that at a later time more fully. But you're indicating that, to the best of your knowledge, the City's interest in those authority plans, whatever the authority might be, is just peripheral, not any direct interest and no 19 direct financial responsibility?
That's accurate. I mean, the City has, I guess, some interest. But, I mean, the City does not have any responsibility in terms of administering those programs.
But in the 43 6/21/00 LAW & GOV'T - BILL 476 appropriations that council makes, you're saying there's no City money involved in financing health plans for the employees of these different agencies?
No. I mean, they're virtually independent in terms of the administration of their programs.
All right. We'll leave it at that for this portion. We may want to go into that more deeply.
Miss Seyda, in reference to the School District of the City of Philadelphia, do you know of any analysis or do you know of any review of the plans and programs that are afforded the employees of the School District?
I mean, that question is obviously, you know, is better, you know, directed to the School District. It is my understanding that they're in the process of looking at their options, and, of course, it's appropriate that they would be doing that now because they're in the labor negotiation 44 6/21/00 LAW & GOV'T - BILL 476 process.
But my question was just of your knowledge, are you aware of any analysis or any review of the School District's plan?
I really don't have any direct -- I don't have any direct knowledge along those lines.
All right. Miss Seyda, we thank you for being here. We thank all of the others who were here. The Law and Government Committee will stand in recess with respect to the MTBE issue until the call of the Chair. Thank you all for coming. (The hearing concluded at 2:05 p.m.) - - - 45 C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Wednesday, June 21, 2000, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE ON LAW AND GOVERNMENT BILL NO.'S 000356, 357, RESOLUTION No. 000380 ------------------------- Judith D. Barit