This information applies to City of Modesto Employees under MCEA, MPNSA, MCMA, MPOA, MPMA and unrepresented employees only.
Health Insurance Rates
Health Insurance Information
Anthem Blue Cross is pleased to announce that they have successfully renewed their Agreement with the
Sutter Health System. The fully executed multi-year contract is effective January 1, 2014. You were
notified in October that Anthem's agreement with Sutter Health would expire effective January 1, 2014 due to
not reaching an agreement. Now that the parties have come to terms and agreement, Sutter Health will continue
to be an "in-network" provider under Anthem Blue Cross.
The Anthem HMO plan will not be offered this year as we currently have less than 1% of our population
on this plan and it has become an unaffordable option.
Benefit modifications were made to the existing Anthem HDHP design and the new name for this plan
will be Anthem HDHP Embedded HSA 710. Employees currently enrolled in Anthem HDHP will automatically default
into plan Anthem HDHP HSA 710 and will not need to complete any paperwork if they do not want to change from
The City has added an alternative Anthem HDHP plan. The alternative plan will be referred to as Anthem
HDHP Non-Embedded HSA 501 and is a lower cost premium option. This plan is different from your existing Anthem
HDHP as it is a non-embedded plan which means for a family, the full family deductible will need to be met before
any coverage is paid (i.e. family must meet full $6,000 deductible; one individual in family can meet the full
Health Savings Account (HSA)
A Health Savings Account (HSA) is only available to employees enrolled in a HDHP medical plan (Anthem or
Kaiser HDHP). A HSA is a tax-favored account that allows you to set aside funds to save and pay for qualified medical
expenses incurred by you, your spouse, and any of your qualified dependents. The HSA is an individually-owned account
that earns interest and the funds are carried over, without limit, from year to year.
The City's HSA is administered through Wells Fargo. Wells Fargo has a $2.00 per month administrative fee which is automatically deducted from your account.
Flexible Spending Accounts
A Flexible Spending Account (FSA) is a tax-favored program offered by the City that allows employees to pay for eligible
out-of-pocket health care and dependent care expenses with pre-tax dollars. The City offers three FSA accounts:
Unreimbursed Medical (URM), Limited Expense Unreimbursed Medical (LEX URM), and Dependent Care Assistance Program (DCAP).
ASI administers the FSA program. There is a $3.50 per month ($1.62 per pay period) administration fee.
Unreimbursed Medical (URM)
Limited Expense Unreimbursed Medical Program (LEX URM)
Dependent Care Assistance Program (DCAP)
Stanislaus Foundation Dental
Chiropractic/Mental Health Plans
Health Care Reform
On March 23, 2010, President Obama signed into law the health care reform bill, the Patient Protection and
Affordable Care Act. This legislation, along with the Health Care and Education Reconciliation Act of 2010,
makes sweeping changes to the U.S. health care system. These changes will be implemented over the next several
years. Below is an overview of the key reform provisions that have been implemented. If you would like
more information on the Health Care Reform please visit their website at
- Extended Coverage for Young Adults
Effective January 1, 2011, children are now eligible for coverage up to the age of 26 regardless of marriage status,
financial dependency, or student status.
- Preexisting Condition Exclusions
Effective January 1, 2011, a preexisting condition limitation cannot be applied to any enrollee who is under
age 19. Starting plan year January 1, 2014, preexisting condition limitations will be prohibited for all plans
and all covered individuals.