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HomeMy WebLinkAboutReso 2023-3463RESOLUTION NO. 2023 - A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING THE SELECTION OF CIGNA HEALTHCARE AS THE PROVIDER OF EMPLOYEE HEALTH INSURANCE; CIGNA DENTAL AS THE PROVIDER OF DENTAL INSURANCE; EYEMED AS THE PROVIDER OF VISION CARE; MUTUAL OF OMAHA AS THE PROVIDER OF 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 ("City") currently provides regular full-time and part-time employees with primary health care through Cigna Healthcare, 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 generally the same levels as the existing coverage; and WHEREAS, after extensive negotiations with the various providers, Brown & Brown and staff recommend acceptance of the proposal submitted by Cigna Healthcare in an annual amount of $2,846,960.16, with employees having the option to choose from two (2) plans: HMO High or HMO Low; and WHEREAS, Cigna Dental has submitted a proposal for Dental Services at an annual amount of $169,641.84, with employees having the option to choose from two (2) plans: DMO or PPO; and WHEREAS, EyeMed has extended their current rates at no additional cost, in an annual amount of $18,543.72; and WHEREAS, Mutual of Omaha has extended their current rates at no additional cost, in the amount of $84,000.00 as the City's provider for life, long-term 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, in an annual amount of $60,000.00; and WHEREAS, these agreements are for a period of one (1) year, with coverage beginning March 1, 2023, for a total amount not to exceed Three Million Three Hundred Nineteen Thousand One Hundred Forty -Five Dollars and Seventy -Two Cents ($3,319,145.72), which includes a contingency in the amount of Two Hundred Thousand Dollars ($200,000.00) for any unforeseen increases. @BCL@AC08E716.Doc Page 1 of 2 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 Healthcare as the City's health care provider, Cigna Dental as the dental insurance provider, EyeMed as the vision care provider, and Mutual of Omaha as the City's provider for life, 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 coverage beginning March 1, 2023, for a total amount not to exceed Three Million Three Hundred Nineteen Thousand One Hundred Forty -Five Dollars and Seventy -Two Cents ($3,319,145.72), which includes a contingency in the amount of Two Hundred Thousand Dollars ($200,000.00) for any unforeseen increases. 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 16th day of February 2023. MauAcio Bbtancu,�, CMC, City Clerk L risa Svechin, Mayor APPROVED AS TO FORM AND LEGAL SUFFICIENCY: 2� Valerie Vicente, City Attorney rr Moved by:/'�S�%/ ��/i�- Seconded by: Vote: Mayor Svechin (Yes) (No) Vice Mayor Joseph (Yes) (No) Commissioner Lama (Yes) (No) Commissioner Stuyvesant Yes) (No) Commissioner Viscarra (Yes) (No) @BCL@AC08E716.Doc Page 2 of 2 O V a7 t� p q O p $ N m n C C Q, E6 N 3Q2 U Q a a Q Q O de m q N N Q d M 'p ?I aOt Vj �' tl Q N N N oD r O - V' Vp Os ,6 4 w v> n V w V 7 N tD Q r N C Vl O 6 Q O N 4 �0 E NN �y lam/ V! 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T T> cr m + N �> � ++ C % c32 o 0. O m CL w m m m w a> W m W d a N w 000 3 al 0 f6 C) mE °\ol o U 49 'a a iJ - D m O a O s O_ a E U . C U U U 3 0m v o E:� �R6ca — m U- m a) E cn LLB2 ° a m w c ... z o E in in Ln '0 = m tca m e- m >, aci C Eo omm to to W. �p N O c N ZZw a v haat 60 �¢ a eRv► (h co M w `o rn a C �0 E a E I i 'I 3 a m E E aETE a> IL o y d O m 7o 'O addcCm �E U) o U CL cr m � ++ c32 o 0. N 'w Y N w W N 3 al 0 f6 C) U N N 3 U 49 'a a iJ - D m O a O s O_ a E O T~ . C cn Of U T ww v o E:� �R6ca m U- m a) E cn LLB2 ° a m w c ... (9 m E wwwu E E mL 10 '0 = m tca m m m >, aci o omm O c vUv ZZw a v haat �¢ a eRv► `o rn a Insurance Summary 2023 Provider Insurance Type Summary The recommendation is to remain with Cigna for medical insurance. This was the most competitive proposal received. Due to the high claims experience this past year; Cigna originally proposed a rate increase of approximately 18.2% for the Cigna Buy Up Plan and 11.4% for the Cigna Cigna Medical Base Plan (approximate annual amount* of $3,164,441.40). Healthcare After extensive negotiations, Cigna provided a proposal with a rate increase of approximately 5.7% for the Cigna Buy Up Plan and 2.6% for the Cigna Base Plan (approximate annual amount* of $2,846,960.16), with no plan changes. The recommendation is to remain with Cigna for dental insurance. This was the most competitive proposal received. Cigna provided a proposal with a rate increase Cigna Dental Dental of approximately 13% for the Cigna PPO Dental Plan and 4.5% for the Cigna DMO Plan (approximate annual amount* of $169,641.84), with no plan changes. Eyemed has extended their current rates at no additional cost. Approximate annual amount* of $18,543.72. This will EyeMed Vision be the second year of a four-year rate guarantee. Life; Accidental Mutual of Omaha has extended their current rates at no Death & additional cost. Approximate annual amount* of Mutual of Dismemberment; $84,000.00 Omaha Long -Term Disability; Mutual of Omaha has extended their current rates at no Voluntary Short additional cost. Approximate annual amount* of $60,000.00 Mutual of Term Disability Omaha and Voluntary Voluntary Short Term Disability and Voluntary Life Life Insurance Insurance is at the sole cost of the employee. *Please note that annual amount presented is an approximation based on current enrollment of active employees, COBRA participants and retirees. Amounts may vary or fluctuate throughout plan year based on new enrollments, addition of dependents or IRS allowed plan changes. f'rr QF So na0 City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, Florida 33160 (305) 947-0606 City Hall (305) 949-3113 Fax MEMORANDUM TO: Honorable Mayor and City Commissioners VIA: Stan Morris, City Manager FROM: Yael Y. LondoA±o, Human Resources and Risk Management Director DATE: February 16, 2023 RE: Approval of Selection of 2023 Insurance Providers RECOMMENDATION: Staff recommends approval of this Resolution. 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 stafl 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. 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, 2023, provided receipt of City Commission approval. Lastly, all of the recommended providers have an AM Best's Rating of "A" which is "Superior" to "Verb 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. Please note that annual amounts presented in this resolution are an approximation based on current Item Number: 10.13 enrollment of active employees, COBRA participants and retirees. Amounts may vary or fluctuate throughout plan year based on new enrollments, addition of dependents or IRS allowed plan changes. Therefore this resolution also includes a contingency in the amount of $200,000 to cover the aforementioned potential increases or expenses. FUNDING SOURCE: Funding is available in the 42300 (Benefits - Health and Dental) & 423001 (Benefits - Life, ADD & LTC Personnel Services Accounts in each department and/or division. ATTACHMENTS: Resolution Final Rate Proposal Insurance Summary 2023 Item Number: 10.6