LAKEPORT >> The Lakeport City Council discussed prescription plan options for Medicare-eligible retired employees of the City of Lakeport during a special meeting on Monday afternoon.
Councilman Tom Engstrom abstained from the discussion. He cited his upcoming retirement from the council as the reason.
Currently, the city”s insurance plan for retirees is through CVS/Caremark, which is a fully insured plan. The plan is not a supplement to Medicare and replaces any Medicare drug benefits.
Medicare coverage guidelines or exclusions are not associated with the CVS/Caremark insurance plan.
An alternative option for a Medicare Prescription Drug Plan, offered through Express Scripts Silvers, was recommended to the council. This proposed plan would act as a supplement to Medicare prescription drug benefit.
The supplemental program would be required to meet benefit thresholds and follow guidelines for coverage limits and exclusions.
An increase in the monthly cost for the CVS/Caremark plan, from $365 to approximately $385 per retiree and scheduled for January, is the reason the issue was brought before the council.
If approved, the Express Scripts Silver prescription plan would result in a total of approximately $74,000 in annual savings, according to Lakeport Administrative Services Director Kelly Buendia. Monthly, the plan would cost the city a little less than $183 per retiree each month.
The portion of premium paid buy retirees would result in an annual savings of approximately $582 for an individual or a little less than $1,200 for couples.
Considering the savings for both the city and the retirees, the council approved staff to move forward with changing prescription plan services from CVS/Caremark to Express Scripts Silver with a 4-0 vote.
“As of right now, we have the go-ahead,” Lakeport City Manager Margaret Silveira said. “although there are a few questions the council wanted answered, so we are still doing a bit of research
Silveira said that staff will return to the council with the requested information at its Dec. 2 meeting.
