Laserfiche WebLink
<br />2008 Employee Benefit Plan <br />Review and Recommendations <br />February 13,2008 <br /> <br />BROKER SERVICE & COMPENSATION ISSUES <br /> <br />Based upon our review of the renewal proposals, insurer and plan design options <br />presented and the service provided during our requests for additional information, it <br />appears that Brown & Brown is providing excellent service to the City. <br /> <br />The United Healthcare renewal calculation exhibit which was provided by Brown & <br />Brown indicates that United Healthcare is paying Brown & Brown a commission of 5% <br />on the medical premiums. This commission equates to an annual compensation of about <br />$55,000 for 2007/2008 for the medical for Brown & Brown. We assume there is some <br />additional compensation for the dental insurance also. This compensation seems <br />reasonable to us and is consistent with industry standards. <br /> <br />FUTURE CONSIDERATIONS <br /> <br />WELLNESS PROGRAMS <br /> <br />If the City has not initiated a wellness program for employees, we recommend this for all <br />our clients, Wellness initiatives can be as simple as sponsoring smoking cessation classes <br />in City facilities, offering discounts on weight management programs or lunch time <br />walking clubs. Many of our clients have been successful in utilizing existing community <br />resources for these type services. Also, United Healthcare may be able to provide some <br />resources for the City to enhance a program. <br /> <br />RENEWAL SCHEDULING <br /> <br />We always recommend that our clients manage the renewal process for insurance instead <br />of allowing the insurance companies to direct the process. For the 2009 renewal, we <br />recommend early meetings with both broker and insurer representatives to develop goals <br />and timelines. Ideally, the renewal will be finalized in time for approval at the January <br />City Commission meeting so that changes in payroll and enrollment can be processed in <br />the month of February for the March 151 effective date. <br /> <br />AGING WORKFORCE ISSUES <br /> <br />Over the next few years, the City, like most employers, will be facing an increasing aging <br />workforce. At this time, six of the City's medical plan participants are 63 years of age or <br />older (date of birth in 1945 or earlier) and an additional nine employees will reach this <br />age category in the next five years. In the coming few years, the City will need to focus <br />on controlling medical plan costs for these employees and retirees, Plan design options, <br />such as a Medicare supplement type plan for retirees, should be considered. <br /> <br />Page 11 <br />