City of Oak Creek

Common Council Report

Meeting Date:  4/19/05

Item No.:         15

Recommendation:  That the Common Council adopt Resolution No. 10508-041905, to forego applicability of the Mental Health Parity Act (MHPA) (HIPAA Opt-Out Election).

Background:  The City previously elected not to subject itself to the MHPA.  The City first opted out of this provision in 1998 and periodically needs to renew that election from time to time.  Upon adoption of this resolution, the required notice will be distributed to the Center for Medicare and Medicaid Services (CMMS), affected City employees and union representatives.  A copy is attached which explains the “opt out” election in more detail.

Basically, this provision allows the City to continue providing health benefits for psychological disorders and chemical and alcohol dependencies as it has done before HIPAA became effective.  The attached resolution simply says that the City will continue to provide those benefits according to our health insurance plan that is in effect. 

Because the City has elected to continue to provide its current level of benefits, an employee’s right to receive mental or nervous disorder benefits under the plan will not be affected.

Fiscal Impact:  None.

	Respectfully submitted, Barbara S. Blumenfield, Ph.D City Administrator
Fiscal Review by: Beverly A. Buretta, CMC City Clerk