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premiums). Our claims experience with AvMed is approximately 84%. As per the City's insurance representative - Brown & Brown - this increase is less than most of their other renewals which are averaging 15 - 20%. I've also spoken to Al Waters of Siver Consulting and he felt this is "very reasonable" based on what he is seeing in the market today. That is, his experience this past year has been that 12 - 13% increases are the minimum that most providers are seeking due to rising medical costs. And, that's with a loss ratio of 85% or less. As part of the renewal process this year, Brown & Brown again met with City staff representing all departments to determine the overall level of satisfaction with the current providers. After an in-depth discussion regarding providers, coverages, premiums and customer service the consensus was to remain with AvMed. Health Insurance - As in previous years the city's Brown & Brown issued proposals to prospective firms on behalf of the City. Their mission was to provide for the same level of benefits as employees currently have. Proposals were submitted to the following firms with their response indicated: 1. Aetna- Declined based on claims history 2. Cigna- Declined based on claims history 3. AvMed -Quoted 12% increase 4. UnitedlNHP- Have not provided a quote 5. Humana- Have not provided a quote 6. Vista - Provided a proposal with comparable rates but coverages were much less 7. BCBS- Have not provided a quote Based on the above, the City's review team concurs with the Brown & Brown recommendations: . Continuation of AvMed as the healthcare provider with an average of 12% in annualized premiums. The plans selected are the HMO-OA 5228, POS-OA 5011 and HMO-OA 5076. The third plan is the lower cost option that we started making available two years ago. . Continuation of Lincoln Financial Group as the provider for dental, life, disability and accidental death & dismemberment (ADD). The dental insurance renewal premium has increased by 27% based on a loss experience of 137%. Other premiums have increased nominally, i.e. less than 5%. Approximate annualized cost of the increases is $30,000. . Continuation of Eye Med as the provider for the vision insurance. The estimated cost of these insurances for the balance of this fiscal year is $80,000. Funds are currently budgeted in the line item account 5230 within each department and no transfers are needed at this time. Weare also going to meet with Brown & Brown to discuss a possible reduction in their commission fee.