3.A.
Employee Benefit Trust Board Meeting
- Meeting Date:
- 03/13/2019
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
ITEM:
Discussion and possible action on any and all matters regarding excluding from the Trust the mandatory benefit under A.R.S. §38-673 for police and firefighters for counseling after exposure to traumatic events. ITEM CONTINUED FROM REGULAR BOARD MEETING HELD ON FEBRUARY 13, 2019. (Monica Castro, City Finance Director and Kay Marion Macuil, City Attorney)
SUMMARY:
This item was continued from the last meeting on February 13, 2019
Background of ARS §38-673 (The statute is attached)
According to the Governor's April 23, 2018 press release from the signing ceremony, the bill was drafted in response to the loss of Phoenix Officer Craig Tiger, who used deadly force on a subject in 2012 who was assaulting him and his partner. After this event, Officer Tiger attempted suicide one year after the shooting, and in 2014 he committed suicide. Officer Tiger’s death was believed to be a result of undiagnosed and untreated Post Traumatic Stress Disorder (PTSD). It is intended to prevent and treat PTSD for police and firefighters.
Summary of ARS §38-673 Regarding the Health Care Benefit
It went into effect August 3, 2018, and ends December 31, 2022, subject to change by the Arizona Legislature.
immediate aftermath of such a death or maiming of one or more
human beings.
2. Responding to or being directly involved in a criminal investigation
of an offense involving a dangerous crime against children (as
defined in section 13-705). Note this one is investigation - not a single event.
3. Requiring rescue in the line of duty where one's life was
endangered.
4. Using deadly force or being subjected to deadly force in the line of
duty, regardless of whether the peace officer or firefighter was
physically injured.
5. Witnessing the death of another peace officer or firefighter while
engaged in the line of duty.
6. Responding to or being directly involved in an investigation
regarding the drowning or near drowning of a child. Note this one lists investigation.
Other requirements of ARS §38-673
The employer must pay the police officer or firefighter for the time off needed to attend treatment and must not deduct vacation, sick, or other leave benefits.
If the counselor determines that the police or firefighter is not fit for duty, the employer must pay up to 30 calendar days per incident after the date of the determination. There are extensive reporting requirements. If a counselor charges more than the cap, there will be staff time explaining to the police or firefighter that the additional cost will be on them.
Unknown Dollar Amount Cost of Mandated Benefit
Benefits Consultant Susan Posada pulled the use history for the EAP for 2017 and 2018 (Utilization Reports attached)
These reports of the number of past claims and the number of past sessions. But these claims are not necessarily for traumatic event counseling since there was no requirement to track this until August of 2018.
Background of ARS §38-673 (The statute is attached)
According to the Governor's April 23, 2018 press release from the signing ceremony, the bill was drafted in response to the loss of Phoenix Officer Craig Tiger, who used deadly force on a subject in 2012 who was assaulting him and his partner. After this event, Officer Tiger attempted suicide one year after the shooting, and in 2014 he committed suicide. Officer Tiger’s death was believed to be a result of undiagnosed and untreated Post Traumatic Stress Disorder (PTSD). It is intended to prevent and treat PTSD for police and firefighters.
Summary of ARS §38-673 Regarding the Health Care Benefit
It went into effect August 3, 2018, and ends December 31, 2022, subject to change by the Arizona Legislature.
- Applies only to police and firefighters
- Employer-paid traumatic event counseling with Arizona licensed psychologist or psychologist o
- The police or firefighter's choice 12 sessions, then if recommended by the counselor and an additional 24 employer-paid sessions within 1 year of the first session for a total of 36 sessions.
- The law caps the costs of sessions to the amount that would be paid under workers' compensation. This cap does not create a presumption that a claim is compensable under workers' compensation. (Attached is the fee schedule)j (As low as $47.83 for Group Psychotherapy to as high as $274.04 for Psychiatric diagnostic evaluation with medical services)
- Telemedicine is allowed.
- List of qualifying traumatic events::
immediate aftermath of such a death or maiming of one or more
human beings.
2. Responding to or being directly involved in a criminal investigation
of an offense involving a dangerous crime against children (as
defined in section 13-705). Note this one is investigation - not a single event.
3. Requiring rescue in the line of duty where one's life was
endangered.
4. Using deadly force or being subjected to deadly force in the line of
duty, regardless of whether the peace officer or firefighter was
physically injured.
5. Witnessing the death of another peace officer or firefighter while
engaged in the line of duty.
6. Responding to or being directly involved in an investigation
regarding the drowning or near drowning of a child. Note this one lists investigation.
Other requirements of ARS §38-673
The employer must pay the police officer or firefighter for the time off needed to attend treatment and must not deduct vacation, sick, or other leave benefits.
If the counselor determines that the police or firefighter is not fit for duty, the employer must pay up to 30 calendar days per incident after the date of the determination. There are extensive reporting requirements. If a counselor charges more than the cap, there will be staff time explaining to the police or firefighter that the additional cost will be on them.
Unknown Dollar Amount Cost of Mandated Benefit
- No companies are selling insurance for this,
- The Stop Loss will not cover it.
- The benefit of the additional 13th through 36th visits expires 1 year after the first visit. However, there is no requirement as to when after the traumatic event the police or firefighter can use the benefit. The effects of PTSD may not be realized for years.
- There is no claims history for this type of benefit.
Benefits Consultant Susan Posada pulled the use history for the EAP for 2017 and 2018 (Utilization Reports attached)
These reports of the number of past claims and the number of past sessions. But these claims are not necessarily for traumatic event counseling since there was no requirement to track this until August of 2018.
- For 2017 there were 12 EAP files opened with a total of 18 hours of services
- For 2018 there were 4 EAP files opened with a total of 5 hours of service
San Luis Experience with Traumatic Events
In 2018 the firefighters had 18 known traumatic events exposing about 10 firefighters. (Attached is the Fire Department's Report)
Since August of 2018, the San Luis Police Department had a total of 39 known traumatic events, exposing 51 PD members. (Attached is the Police Department's Report)
Another Arizona City with a Benefits Trust
The big City of Scottsdale outsources the administration and has the Trust pay that contract. It has the Police and Fire Departments pay the claims. (The HR and Finance Departments can allocate the cost of the claims to the Police and Fire Department budgets so that the Police and Fire will not be involved in handling the confidential claims. )
Recommendation
It is recommended that the cots be budgeted in the Police and Fire Departments and not the Employee Benefits Trust.
Another Arizona City with a Benefits Trust
The big City of Scottsdale outsources the administration and has the Trust pay that contract. It has the Police and Fire Departments pay the claims. (The HR and Finance Departments can allocate the cost of the claims to the Police and Fire Department budgets so that the Police and Fire will not be involved in handling the confidential claims. )
Recommendation
It is recommended that the cots be budgeted in the Police and Fire Departments and not the Employee Benefits Trust.
This mandatory law pertains only to police officers and firefighters. The police officers and firefighters are a portion of all employees. There is a potential for a large number of claims for counseling. The Chief of Police noted that just since August his entire force has been exposed to at least one traumatic event. If the entire force (about 51 Police Officers) took advantage of the 12 initial counseling sessions with the possibility of the counselors recommending the maximum 36 counseling sessions, the cost of these sessions would make less health benefit funds available for the rest of the employees who are not police officers or firefighters.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO DENY INCORPORATING THE THE TRAUMATIC EVENT MENTAL HEALTH BENEFIT FOR POLICE AND FIRE FIGHTERS UNDER ARS §38-673 INTO THE TRUST.
Fiscal Impact
Fiscal Impact:
In addition to the administrative costs of the associated contract, there is an unknown cost of the claims. There is no history to draw on to predict the claims. The Benefits Consulted Susan Posada mentioned a reserve of $15,000 to be budgeted for the first year.
This is the associated administrative Contrat.
A one-time setup and program enrollment fee of $500 plus $10 Administration Fee per unknown number of counseling sessions, dependent upon participation in the program.
All direct costs incurred by EAPP to be invoiced to the Employer on a monthly basis with payment due Net 30.
Budgeted Amount: Not Budgeted
General Ledger Number: 100-181-5016X, 100-182-5016X, 340-341-516X
Remaining Balance Before Purchase: N/A
Attachments
- ARS 38-673
- Cap on Counseling Fees
- 2017 EAP History
- 2018 EAP History
- 2018 Fire Traumatic Events
- PD traumatic stats
- EAPP Confidentiality