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HomeMy WebLinkAboutReso 2014-2184RESOLUTION NO. 2014 -_� A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING THE SELECTION OF CIGNA AS THE PROVIDER FOR EMPLOYEE HEALTH AND DENTAL INSURANCE; EYEMED AS THE CITY'S PROVIDER FOR VISION CARE; MUTUAL OF OMAHA AS THE PROVIDER FOR LIFE INSURANCE, ACCIDENTAL, DEATH & DISMEMBERMENT (AD &D) INSURANCE, LONG TERM DISABILITY INSURANCE, VOLUNTARY SHORT TERM DISABILITY INSURANCE, AND VOLUNTARY LIFE INSURANCE, FOR A ONE -YEAR PERIOD; AUTHORIZING THE CITY MANAGER TO ENTER INTO AGREEMENTS WITH THESE PROVIDERS, PROVIDED SAID AGREEMENTS ARE APPROVED AS TO FORM AND LEGAL SUFFICIENCY BY THE CITY ATTORNEY; FURTHER AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sunny Isles Beach currently provides regular full -time and part - time employees with primary health care through Cigna, a full - service healthcare provider; and WHEREAS, staff requested the City's insurance broker (Brown & Brown Insurance, Inc.) to issue proposals on behalf of the City to provide insurance coverages at basically the same levels as the existing coverage; and WHEREAS, City staff and Brown & Brown representatives met with representatives from our current health care provider Cigna, and after extensive negotiations, Cigna submitted a renewal proposal for services in an annual amount of $1,605,163.32 which is 9.97% higher than our current rates, based on the City's claims history, and the consensus was to move forward with the Cigna proposal for health insurance, and employees have the option to choose from two (2) plans: HMO High or HMO Low; and has proposed rates for Dental at an annual amount of $120,965.64 which is 6.00% higher than our current rates and employees have the option to choose from two (2) plans: DMO or PPO; and EyeMed has extended their current rates at no additional cost with an annual amount of $20,949.60; and WHEREAS, Mutual of Omaha has extended their current rates in an annual amount of $58,000.00 as the City's provider for life, disability and accidental death and dismemberment (AD &D) insurance, and at the employee's sole cost the voluntary short term disability insurance and voluntary life insurance, and the current rate for long term disability insurance in an annual amount of $52,000.00; and WHEREAS, these agreements are for a period of one (1) year with a renewal date for the City's health, dental and other employee insurances of March 1, 2014. R2014- Cigna Employee Health Insurance Providers Page 1 42 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Approval of City Commission. The City Commission hereby approves the use of Cigna as the City's health care and dental provider, EyeMed for vision care, and Mutual of Omaha as the City's provider for life, disability and accidental death and dismemberment (AD &D) insurance, long term disability insurance, voluntary short term disability insurance, and voluntary life insurance, for a one -year period, with a renewal date of March 1, 2014. Section 2. Authorization of City Manager. The City Manager is hereby authorized to enter into agreements with said insurance providers, provided said agreements are approved as to form and legal sufficiency by the City Attorney. Section 3. Further Authorization of the City Manager. The City Manager is hereby authorized to do all other things necessary to effectuate this Resolution. Section 4. Effective Date. This Resolution shall become effective upon adoption. PASSED and ADOPTED on this 20t1i day of February 2014. ATTEST: C—sa,wa � UL�) Jane A. Hines, MMC, City Clerk APPROVED AS TO FORM AND LEGAL SUFMCNNCY H�Ottinot, CI (y Attorney Vote: 5 —p Mayor Norman S. Edelcup Vice Mayor Isaac Aelion Commissioner Jeanette Gatto Commissioner Jennifer Levin Commissioner George "Bud" Scholl R2014- Cigna Gmployee Health Insurance Providers Page 2 of 2 Moved by: I, �V►�mn�A.>u.Km¢.� Got ( "b Seconded by: \4 CA ,✓ Yes) (No) (Yes) (No) (Yes) (No) (Yes) (No) /(Yes) (No) Insurance Summary Table - 2014 Provider Insurance Tvve Summary Cigna Medical Cigna originally submitted a renewal proposal for services in an annual amount of $1,722,036.36 which is 17.97% higher than our current rates. After extensive negotiations, Cigna submitted a renewal proposal for services in an annual amount of $1,605,163.32 which is 9.97% higher than our current rates. This was the most competitive proposal received. Employees have the option to choose, from two (2) plans: HMO High or HMO Low. Employees can realize a savings by selecting one of the standard lower priced plans, or they can pay the additional cost for the higher priced plan. Cigna is a nationwide provider with a broad network of participating physicians. Cigna Dental Cigna submitted a proposal for services in an annual amount of $120,965.64 which is 6.00% higher than our current rates. This was the most competitive proposal received. Employees have the option to choose from two (2) plans: DMO or PPO. EyeMed Vision EyeMed has extended their current rates at no additional cost. Annual amount of $20,949.60 We are in our 2„d year of a multi -year rate lock. Mutual Life /AD &D /Long- Mutual of Omaha has extended their current rates at of Omaha Term Disability no additional cost. Annual amount of $58,000.00 Mutual Voluntary STD Mutual of Omaha has extended their current rates at of Omaha and Life no additional cost. Annual amount of $52,000.00 Insurance Voluntary Short Term Disability and Voluntary Life Insurance is at the sole cost of the employee. 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C). } Z/ � ■ 2 2 � c c � W 0 � U 0 c 0 § % CL E 0 U c 0 ■ > � 0 q t � ■ 2 r z n Cl) m r \ m Q G k \ °g ) § LO % 7 7 ( \ / z - C 0 §° a a § 2 o a k C13 2 E @ ¥ * f ¥ + _ \ � o $ \ CC k ƒ ƒ L 3 2 « o � + + m k § k § o \ co \ \ $ co a $ % m$ 3 - - - -2 � \ -- - - -cli \ m 2 \ 2 \&9 o o & — $ @ 7 S 0 } 0 k ® % \ \ E E E § + 2/\ m % u u-/ a g&�\ ± ° \ b » \ w w u LL k# a) % e _ m \ w � % » » % 2 2 % G) / 3 / 3 ° ( \ ' o 0 0 0 g \\ a — a Ga3 _ M & G \ m Q G ) § D 2) C13 E \ � o $ \ m cc ) 2 « � + + m I c u »\ E § o o $ 2 % m$ 3 2 2@ / / � \ \ t f G \ \ $_ 2 f o o & — $ @ 7 S 0 } 0 k ® % \ / E E E § + 2/\ m % u u-/ a g&�\ 3 2 \» u \ w w u LL k# a) e i/ cc a_ � w � December 6. 2012 City of Sunny Isles Beach 18070 Collins Ave Sunny Isles Beach. FL 33160 EyeMed Vision Care 4000 Luxottica Pl. Mason. OH 45040 EyeMed VISION CARE© Subject: City of Sunny Isles Beach - Vision Care Renewal- 3/1/2013 Dear Patti. It has been a pleasure to provide your client. City of Sunny Isles Beach with vision care benefits. As we approach the renewal date for the group. 3/1/2013. we would like to discuss continuing service with EyeMed Vision Care. ` I am recommending a 48 month extension of their current rates and plan design All we would need is written documentation that they would like to renew as is. An e -mail is acceptable. The current rates and enrollment by tier are listed below. Tier Rate Current Membership Employee Only 55.68 91 Employee + Children S 1 1.32 23 Employee + Spouse S10.76 30 Employee + Family S16.68 30 If you would like to see additional options or you have any questions. please don't hesitate to contact me. By the way. I know we have 174 subscribers enrolled in the plan currently. but can you tell me how many employees are actually eligible? We appreciate the opportunity to provide excellent service to your client's employees. Thank you for recognizing the value and overall wellness benefits a vision care program offers. Sincerely. Brandon Williams Client Support Specialist 513- 765 -6739 Bwillia5 @eyemedvisioncare.com SOUTH FLORIDA GROUP OFFICE MUTUAL OF OMAHA 1000 SAWGRASS CORPORATE PARKWAY SUITE 158 SUNRISE, FL 33323 -0000 PHONE: (866) 660-0828 FAx: (954) 845 -6077 January 29, 2014 Samantha Graveline 1201 West Cypress Creek Road Suite 130 Fort Lauderdale, FL 33309 Re: City of Sunny Isles Beach Group #: G000AIJ6 Dear Samantha: m Murual—ItOmaHa Thank you for choosing Mutual of Omaha as your client's benefits provider. It has been our pleasure to provide City of Sunny Isles Beach with group benefits and services that are unique to your client's individual needs. Mutual of Omaha is committed to providing unparalleled service that will meet the needs of our customers. Each renewal period, we analyze current benefit and rate structures to determine the appropriate rates for continued group insurance protection for your valued employees. This process includes recalculation of the premium rates to reflect factors like: • plan features • demographics • nature of business • experience • any adjustments to our underlying rate structure Based upon our review, your renewal rates, effective 3/1/2014, are as follows: Renewal Current Renewal Monthly Rate Current Monthly Renewal Monthly Premium Guarantee Coverage Rate Basis Rate Premium Rate Premium Change Date Voluntary Employee & See detail Spouse Term Life Age Banded below 3/1/2016 Voluntary Dependents Term Life Per $1,000 $0.20 $61.00 50.20 $61.00 $0.00 3/1/2016 Employee Term Life Per $1,000 $0.18 $2,091.84 50.18 $2,091.83 $0.00 3/1/2016 Employee AD &D Per $1,000 $0.02 $232.43 $0.02 $232.43 $0.00 3/1/2016 Per $10 of Voluntary Short-Term Weekly Disability Benefit $0.32 $1,853.10 $0.32 $1,853.1 $0.00 3/1/2016 Per $100 of Monthly Covered Long -Term Disability Payroll $0.46 I $4,087.03 $0.46 $4,087.03 $0.00 3/1/2016 Premium Totals 1 $8,325.40 $8,325.39 $0.00 Voluntary Employee & Spouse Term Life Age Band Rate Basis Current Rate Current Monthly Premium Renewal Rate Renewal Monthly Premium Renewal Monthly Premium Change Rate Guarantee Date < 24 Per $1,000 $0.12 $0.00 $0.120 $0.00 $0.00 3/1/2016 25-29 Per $1,000 $0.12 $84.00 $0.120 $84.00 $0.0 3/1/2016 30-34 Per S 1,000 $0.13 $163.15 50.130 $163.15 $0.00 3/1/2016 35-39 Per $1,000 $0.19 $362.90 $0.190 $362.90 $0.00 3/1/2016 40-44 Per $1,000 50.31 5407.65 $0.310 $407.65 $0.0 3/1/2016 45-49 Per 51,000 $0.51 $550.80 $0.510 $550.80 $0.00 3/1/2016 50-54 Per $1,000 $0.77 $473.55 $0.770 $473.55 $0.00 3/1/2016 55-59 Per $1,000 S1.14 5524.40 $1.140 $524.40 $0.00 3/1/2016 60-64 Per S 1,000 $1.88 $263.20 S1.880 $263.20 $0.00 3/l/2016 65-69 Per 51,000 $3.40 $0.00 53.400 $0.00 $0.00 3/1/2016 70-74 Per $1,000 $4.80 $0.00 $4.800 $0.00 $0.00 3/1/2016 75-79 Per $1,000 $10.38 $0.00 $10.380 SO.00 $0.00 3/1/2016 80-84 Per 51,000 $10.38 $0.00 $10.380 $0.00 $0.00 3/1/2016 85-89 Per $1,000 $10.38 $0.00 $10.380 $0.00 $0.00 3/1/2016 90 -100 Per $1,000 $10.38 $0.00 $10.380 SO.00 $0.00 3/1/2016 The monthly premium shown is based upon current billed lives and volume. We appreciate your business and look forward to the continued opportunity to meet your group insurance needs. If you have any questions or if we can be of further assistance, please contact me at (866) 660 -0828 or Karen .Plunkett@ mutualofomaha.com. Sincerely, Karen Plunkett Account Executive t C.1 R d m CD T c ea w J v 0 N L cc to 2 c 3 M w E m T � C C O m N a O C m aN a J U d N N � d J t6 N J m 0 0 �O o m `c_ C 0 (D .J O X I m a N c m O o -0 I CD E E O 0 0 L N m to 0 U Z' �' o .. C) L (C (6 C)! 0 00 o 0 0 o C Lo C) Lo tmd Cl) 6 C) I CO V N p O X X C) 0 O O O Cl) 04 CY) O r � p N co 00 C,4 a0 f� O O M cc� a0 69 O #_ o O O o (D o .E y L L C C,4 c C o C Z O -O I Z ,. \ O O O O U 2 p! (n . M 2. Z> O 2 N Cl) t` O) ''� N M' CO C) C L CD'.. O EA ' , C r a N N c0 O1 !A d' O I I U I A W 0) C1 U) IQ ., C O W I O o d W c G. V �. E' m c 06 p 3 E Q y ) E :E d p C D J d W c O W wic L) O' ., E -. y-', ..v rn 7 NCC �.. o £ }a J a 71~ ~ O E''., ��V�y N. H CO Efl N 7 £ FI w N — 10 'o Nj Q Nd y U Z COI- _7 E''. 71 J d Q LL LL .+ O N�,LL CO 7 0 G d. N` N O -_ O Q'. O IL d O .+ m O C O �I E O. O- �'.' N Z Z O .. N C1 C �'O ) c (D r- r- L r N M > a L 'OI (6Q ,LL ri o c Ny C .. O CiZ L r N''� 7I y0� > H L 'O i6 O Z cL Q �iir d M to 0 0 C N. O O Q 0 0 N v 0) rn M U Ta d d' �, L ip Qtr N' U) w y G G N Ul ' C ICI Ip >_ C9 T.d �.�' L , f6 J J N ly6 lN6 (y0 m w l-N6 (-y6 1-NC R ,.. Q Q Q r ; w ''. C C Q Q Q' O u) en 0 M M X w m l-NO (_y0 E ''� X C t' w m �'' N •• 1 C C O''I H H UIU U U J U U U 71 d'iQ l4 l0 C7 Q'I d Q' OiJ C U Lr Q i U U N N U m U U L' 7 m lC W''�'d !n d Q' OIJ r a UI rL Q O O F F c 3 M w E m T � C C O m N a O C m aN a J U d N N � d J t6 N J m 0 0 �O o m `c_ C 0 (D .J O X I m a N c m O o -0 I CD E E O 0 0 L N m to 0 U March 2014 Voluntary Life Insurance Comparison for City of Sunny Isles Beach Icarrier M Omaha I Classes Class I A All Eligible Employees Benefit increments of $10,000 Class I Benefit u up to max of $500,000 50% of employee up to Spouse $ $150,000 Children $ $10,000 Max $100,000 Employee, $50,000 Spouse, Guarantee Issue $ $10,000 Child Minimum participation 2 28% Portability I Included Rates per $10,000 Under 25 1 1.20 25 -29 1 1.20 30 -34 1 1.30 35 -39 1 1.90 40 -44 3 3.10 45 -49 5 5.10 50 -54 7 7.70 55 -59 1 11.40 60 -64 1 18.80 65 -69 3 34.00 70 -74 4 48.00 Rate Guarantee in months 3 36 Months The information outlined is based on census data provided. Final rates are subject to underwriting. This proposal is illustrative. Policy and certificate of coverage will supersede. 2/11/2014 Preview Page 1 of 2 FS�Nr'S City of Sunny Isles Beach 18070 Collins Avenue IT Sunny Isles Beach, Florida 33160 F `R\oP (305) 947 -0606 City Hall ° (305) 949 -3113 Fax MEMORANDUM TO: The Honorable Mayor and City Commission VIA: Christopher J. Russo, City Manager FROM: Yael Y. Londono, Human Resources Manager DATE: 2/20/2014 RE: Approval of Selection of 2014 Insurance Providers: Cigna (Health & Dental); EyeMed (Vision); Mutual of Omaha (Life /AD &D, Long - Term Disability, Voluntary Short Term Disability, and Voluntary Life) RECOMMENDATION: It is recommended that the City Commission consider the attached resolution approving the selection of the following providers: Cigna (Health; Dental); EyeMed (Vision); and Mutual of Omaha Life /Accidental Death and Dismemberment (AD &D); Long -Term Disability (LTD); Voluntary Short Term Disability (STD); and Voluntary Life insurance. REASONS: The City makes available various insurances as a benefit to its employees. The insurances promote health, wellness, and protection. As such, staff requested the City's insurance brokers (Brown and Brown) issue requests for proposals for insurance coverage at basically the same levels as the existing coverage. After extensive negotiations with the various providers, Brown & Brown and staff recommend acceptance of the following provider proposals. See Attachment A (Insurance Summary Table and Proposals). ADDITIONAL INFORMATION: 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, http: / /sibagenda.sibfl. net /Agenda /Preview.aspx ?ltemID= 1245 &MeetingID= O &MeetingDa... 2/14/2014 Preview Page 2 of 2 employees will be advised of the changes and we have tentatively scheduled information and enrollment sessions, in order to effectuate any changes by March 1, 2014, 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. ATTACHMENTS: Resolution Insurance Summary Table and Proposals http: / /sibagenda.sibfl. net / Agenda / Preview. aspx? ItemID = 1245 &MeetinglD= O &MeetingDa... 2/14/2014 TO: City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, Florida 33160 (305) 947 -0606 Citm 11A (305) 949 -3113 Fax (305) 947 -2150 Building Dcpartmcnt (305) 947 -5107 Fax MEMORANDUM The Honorable Mayor and City Commission FROM: Yael Y. Londoho, Human Resources Manager VIA: Christopher J. Russo, City Manager DATE: February U, 2014 RE: Approval of Selection of 2014 Insurance Providers: EyeMed (Vision); Mutual of Omaha (Life /AD &D, Voluntary Short Term Disability, and Voluntary Life) RECOMMENDATION co, Communion Norman S. Edelcup, ;11a)nr Isaac Aelion, Vi,e A la) or Jeanette Gatto, Coznna �ioner Jennifer Levin, Commi.f4oner George "Bud" Scholl, Commit riora,r Christopher J. Russo, Cz`) A1an�her Hans Ottinot, City/lllonie� Jane A. Hines, City Ckrk Cigna (Health & Dental); Long -Term Disability, It is recommended that the City Commission consider the attached resolution approving the selection of the following providers: Cigna (Health; Dental); EyeMed (Vision); and Mutual of Omaha Life /Accidental Death and Dismemberment (AD &D); Long -Term Disability (LTD); Voluntary Short Term Disability (STD); and Voluntary Life insurance. REASONS The City makes available various insurances as a benefit to its employees. The insurances promote health, wellness, and protection. As such, staff requested the City's insurance brokers (Brown and Brown) issue requests for proposals for insurance coverage at basically the same levels as the existing coverage. After extensive negotiations with the various providers, Brown & Brown and staff recommend acceptance of the following provider proposals. See Attachment A (Insurance Summary Table and Proposals). ADDITIONAL INFORMATION 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 will be advised of the changes and we have tentatively scheduled information and enrollment sessions, in order to effectuate any changes by March 1, 2014, 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.