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The Honorable City Commission February 23, 2011 Page 2 Humana Dental EyeMed Vision Mutual Life/ AD&D of Omaha Mutual Voluntary STD of Omaha Mutual of Omaha Voluntary Insurance ADDITIONAL INFORMATION Humana submitted a proposal for a DMO (Dental Maintenance Organization) plan in an annual amount of $44,654.76, which is 64.7% lower than our current rates and a PPO plan in the amount of $125,812.20, which is .54% lower than our current rates. Employees have option to choose between the two plans. Employees can realize a savings by selecting the standard lower priced DMO or they can pay the additional cost for the higher priced PPO. Humana is a nationwide provider with a broad network of participants. Our current provider submitted a proposal in an annual amount of $132,816. 72, which is 5% higher than our current rates. EyeMed has extended their current rates at no additional cost. Mutual of Omaha submitted a proposal in an annual amount of $56,355.15, which is 5% lower than our current rates. They have guaranteed these rates for three (3) years. Our current provider submitted a proposal in an annual amount of $59,153.77. Mutual of Omaha submitted the best proposal overall. They offer a weekly maximum benefit of up to $1,000, based on 60% of an employee's weekly salary. Their coverage mirrors that of our current provider and their rates do not increase with age. Again, they have guaranteed their rates for three (3) years. Voluntary Short Term Disability insurance is at the sole cost of the employee. Life Mutual of Omaha has submitted the best proposal overall. They have a higher guarantee issue ($100,000) than our current provider ($80,000). Again, they have guaranteed their rates for three (3) years. Voluntary Life insurance is at the sole cost of the employee. Staff worked diligently with our brokers to secure the best pricing and plans for our insurance coverage. Proposals that seemed competitive, but did not meet our plan standards were eliminated from consideration. Department Heads were given an overview of the initial proposals and included in the decision-making process. Further, employees have been advised of the anticipated changes and directed to the Humana website for plan/physician information. Additionally, we have tentatively scheduled information and enrollment sessions for employees for next week Tuesday, Wednesday, and Thursday (if necessary), in order to effectuate this change by March 1, 2011, provided receipt of City Commission approval. Lastly, all of the recommended providers have an AM Best's Rating of "A", which is Superior to Very Good, and all agreements will be reviewed as to form and legal sufficiency by the Office of the City Attorney. A complete set of all of the final proposals will be on file in the City Clerk's Office. Thank you.