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Home My WebLink AboutReso 2025-3782RESOLUTION NO. 2025 - :3762— A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING THE SELECTION OF UNITED HEALTHCARE AS THE PROVIDER OF EMPLOYEE HEALTH INSURANCE; UNITED HEALTHCARE 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, FORA 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 (the "City") currently provides regular full-time and part-time employees with primary health care through United Healthcare, a full-service healthcare provider; and WHEREAS, staff requested the City's insurance broker, Brown & Brown Insurance, Inc. ("B&B"), 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, B&B and staff recommend acceptance of the proposal submitted by United Healthcare in an annual amount of $3,353,024.00, with employees having the option to choose from two (2) plans: UHC Buy Up Plan or UHC Base Plan; and WHEREAS, United Healthcare has submitted a proposal for Dental Services at an annual amount of $159,568.00, 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 $20,456.00; and WHEREAS, Mutual of Omaha has extended their current rates at no additional cost, in the amount of $101,455.00 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, 2025, for a total amount not to exceed Three Million Three Hundred Fifty -Three Thousand Twenty -Four Dollars and No Cents ($3,353,024.00), which includes a contingency in the amount of Two Hundred Thousand Dollars and No Cents ($200,000.00) for any unforeseen increases. @BCL@2009B440.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 United Healthcare as the City's health care provider, United Healthcare 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, 2025, for a total amount not to exceed Three Million Three Hundred Fifty -Three Thousand Twenty -Four Dollars and No Cents ($3,353,024.00), which includes a contingency in the amount of Two Hundred Thousand Dollars and No Cents $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 tl ATTEST: ' . , /I Maurici� Betancur,j CMC, City Clerk Larisa Svechin, Mayor APPROVED AS TO FORM AND LEGAL SUFFICIENCY: 44 � rel�. � Iain E. Boileau, for Nabors, Giblin & Nickerson, P.A., City Attorney Moved by: L' L l� Seconded by: Vote: Mayor Svechin Yes) (No) Vice Mayor Lama (Yes) (No) Commissioner Joseph '.(Yes) (No) Commissioner Stuyvesant _7,(Yes) (No) Commissioner Viscarra (Yes) (No) @BCL@2009B440.Doc Page 2 of 2 362 Insurance Summary 2025 Provider Insurance Type Summary The recommendation is to remain with United Healthcare for medical insurance. This is our first renewal with United Healthcare. The current total loss ratio for claims through August 2024 is 83.3%, with six claimants exceeding $50,000. While the initial renewal formula accounted for a United 12% medical and Rx trend and required an Healthcare Medical overall 27% increase, Brown & Brown successfully negotiated a 0% increase for the renewal. Additionally, the renewal includes a $15,000 wellness fund for the March 1, 2025, policy year. Approximate annual amount* of $3,353.024 United Healthcare Dental has extended their current rates at United no additional cost. Healthcare Dental Dental Approximate annual amount* of $159,568 Eyemed has extended their current rates at no additional cost. EyeMed Vision Approximate annual amount* of $20,456 Life; Accidental Mutual of Omaha has extended their current rates at no Death & additional cost. Approximate annual amount* of $101,455 Mutual of Dismemberment; 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 and Omaha Voluntary Life Voluntary Short -Term Disability and Voluntary 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 the plan year based on new enrollments, addition of dependents or IRS allowed plan changes. 363 City of Sunny Isles Bfmch Employee Benefits Renewal Analysis Renewal Date: 3!112025 Medical L114=- IICMMH Provider Network Ct1RRENT l RENEWAL United Healthcare Current 1 Renewal BWRM.M / Rx E27 BWOM-M / Rx E27 Employee Primary Residence Nationwide ;Natlotiwlde Calendar Year Deductible Embedded Embeddeii' Individual I Family $1,000 $2,000 $260 $500 The Plan Pays 100% 100%: Calendar Year Out -of -Pocket Max Embedded Embedded Individual I Family $6,850 $13;700 $6,850' $13,700 Physician & Emergency Care Employee $87.9.05 Preventive Care Covered 100?h Covered 100% PCP I Specialist $15 $30., $1530 PCP Selection Required I Referral Required No No NoI INo Urgent Care $30 - $30 Emergency Room (In or out of network) $500 $500 Hospitalization & Outpatient Care Employee + Spouse $167.44 Inpatient Dedu'ctibls " .:: i ;$250 Pe[ AdmisslfeYDed(icObte Outpatient Deductible Deductible`: Physician Fees Deductible Deductible Independent Facility Care Employee ---------- $936.80. Labs Covered 100%. Covered';100% X-rays Covered 1006% Covered 10D% Complex Diagnostic Imaging $160 - $150 Prescription Drugs Annual Employer Contribution Total Annual Employer Contribution $668,670 Tier 1 --- — Variance from Current (s) Tier 2 $3.5j $35. Tier 3 $70 Specialty (GH, Self Injectable, etc.) Applicable Cost Share _ Applicable Cost'Shere Retail Mail Order - 90 day supply _ 2.6x retail copay, 2.5K retali copay Current Enrollment Employee 32 136 Employee + Spouse 7 5: Employee + Chlkl(ren) 6 . 25; Employee + Family :3 14 Enrollment Totals 48 ' 1130 ' Monthly Premium Employee $87.9.05 $919:28 . Employee + Spouse $1,669:92 - $1,746.34 Employee + Child(ren) $1;845.70 $1,93D.17 Employee + Family $2.636.94 _. $2,757;61 Monthly Employee Contribution Employee-- — —.--- - -$59.75 419.52 Employee + Spouse $167.44 $243:66 Employee + Child(ren) $441,05 $525:52 Employee + Family $669.51 $790;18 Monthly Employer Contribution Employee ---------- $936.80. $938,80 Employee + Spouse $1,502.48 $1,502.48 Employee + Child(ren) $1,404.65 $1,404.65 Employee + Family $1,967.43 $1,9,67.43 Annual Employer Contribution Total Annual Employer Contribution $668,670 $2,374,194 $3,032,863 Variance from Current (s) Annual Premium Total Annual Premium $705,646 $2,647,376 $3,353,024 Brown & Brown Insurance, Inc. 364 City of Stirmy Islets Beach Employee Benefits Renewal Analysis Renewal Date: 3/1/2026 Dental of Benefits Routine Exams CURRENT I RENEWAL 61 United Healthcare Employee 5, DHMO DI 083 -: S100B SHP PPO, CS285 Benefits Bitewing ' , inti rel ;;r09 Maximum Plan Pays Per Enrolled Full Mouth Lifetime Orthodontic Maximum Sealants Coinsurance _ � � ':M�}W Fillingss°ti Preventive 5 >� F " r , y , f b " . s4>4rrI .s��"s Basic MajorgF, Orthodontia Benefits Based on a }>,",..v:MFee 5 113 sa MINIMUM _. lP WS Balance Billingzy;i Calendar Year Deductibles' Deductible Waived for Preventive Services Igrix Orthodontia Eligibility SAdt�1t_&�s3jfylArtn F';.: MOR -11 of Benefits Routine Exams "a " 61 Cleaning Employee 5, X -Rays r�sr' Employee +Spouse; Bitewing ' , inti rel ;;r09 s NA!" Full Mouth :Jim 241.0r Sealants • Pl,�kY�-. _,E�'.-=+iziCO T� Y r}iA$t�5!�'1�`.�iftti?. _ � � ':M�}W Fillingss°ti r ,:g1tY7”«` a Amalgam�a $26,063 $134,616 $169,668 Composite Resin Oral Surgery Root Canal' Periodontal Maintenance* Igrix Periodontal Surgery' " m Endosteal Implants_ i i ` _ iial 9-'i Crowns/Bridges/Dentures a«a FLSchei! I��-aggrAgnts,R` Orthodontia -,4 Sued _.�@,. r _ i' _ S1. 'A, D11�9s "Coinsurance based on complexity of procedure Cost Comparison Month) Premiumz y� "a " 61 5 I e,. 7 nL. Employee 5, F r�sr' Employee +Spouse; .`MI5„s3 ,.� f;,kr`. a Employee + Child ren :Jim 241.0r Employee + Family Enrollment Totals ,:g1tY7”«` a Annual Premium Total Annual Premium $26,063 $134,616 $169,668 Brown & Brown Insurance, Inc. 365 City Of St11111y Isk s Beach Employee Benefits Renewal Analysis Renewal Date: 31112025 Vision Benefit Frequency Cost ComparisonI Current Enrollment CURRENT/RENEWAL Employees EyeMed Employee + Spouse Vision Employee + Child(ren) In-NetworkBenefits Employee + Family Provider Network Enrollment Totalsy Annual Vision Exam& 12 1 0��' Lenses Y �f riL i mr&'r ' `�d�.9 sJf Single, Bifocal & Trifocal Lenses 9 x Progressive Lenses f „'„ BUMIR 0. Frame $20,456 Contact Lenses Contact Lens Exam & Fitting r A, Elective Contact Lenses '" in lieu of lenses/frames Available Discounts,_ Laser Vision Correction ,. A Benefit Frequency Cost ComparisonI Current Enrollment Employees ` Employee + Spouse pit Employee + Child(ren) Cost ComparisonI Current Enrollment Employees ` Employee + Spouse pit Employee + Child(ren) Employee + Family Enrollment Totalsy Monthly Premium,' Employee a Employee + Spouse Employee + Child(ren)f. x._ _Z Emplo ee + Family_ Total Annual Premium $20,456 Brown & Brown Insurance, Inc. 366 6! E U) 0 oa »—o; .9 0 IL Q �i li cn (n E o ZE ,a 0 3/m }��$( \� � \\�\� »� �� )(\ � \: � 50 \ /\� \\^�\\ \\}):\\\\\\ E City Of S1,11111y isies Beach Employee Benefits Renewal Analysis Renewal Date: 311/2025 Long -Term Disability Policy Provisions p Employer • • • Rate Guarantee (from renewal date) Rate Guarantee End DE Participants 253 Brown & Brown Insurance, Inc. 368 CURRENT/RENEWAL Mutual of Omaha Em lo. erwftd.Long-Term Disability Schedule of Benefits Class Description 4� Benefit Amount Benefit Percentage Maximum Monthly Benefit Maximum Annual Compensation Covered�r"` t aj Elimination Period "r< - Benefit Duration Own Occupation Policy Provisions p Employer • • • Rate Guarantee (from renewal date) Rate Guarantee End DE Participants 253 Brown & Brown Insurance, Inc. 368 City of SUI-Irly Isles Beach Employee Benefits Renewal Analysis Renewal Date: 31112025 Group Voluntary Life/AD&D - CURRENT%RENEWAL `�ti �Y a��. Mutual of Omaha _. _ ScliedUlf- Benefits n Glass Description � �' 0 1 r r ��a1 ear _F Employee---- -- °rt �u,' & ,�Effi.. Minimum Benefit Amount - k i Maximum Benefit Amountb F 60-64 Increments') '.' :s> Guarantee Issue (GI) — 1 70-74 Reduction of Benefits -- at age 65`, ., at age 70h at age 75 Spouse >y' Minimum Benefit Amount r: 1 1 a= Children Child(ren)- per 111 of • - .•- Maximum Benefit Amount'' dry x/ ik Increments Guarantee Issue (GI)- t Spouse coverage terminates Child(ren) ri Maximum Benefit Amount Kits _ Estimated Rates • •' 1 [ife t'.atC/$1,000 i"� 1� a7 � 'f z (,, `�ti �Y a��. a DN:Y65-59 60-64 • �: a YRI MUM — 1 70-74 /9Ex 75+ WEEK, M14 �Spouse's rate based upon AD&D rate per $1,000 of coverage Employee 1 a •. r: 1 1 a= Children Child(ren)- per 111 of • - .•- Participants 49 Brown & Brown Insurance, Inc. 369 City Of Sunny Isles Beach Employee Benefits Renewal Analysis Renewal Date: 31112026 Short -Term Disability SchedUle .- Class Description Benefit Amount Benefit Percentage Maximum Weekly Benefit Maximum Weekly Compensation Covered Maximum Annual Compensation Covered Elimination Period Accident Illness _ Payable Benefit Period Accident Illness Employer Contribution Rate Guarantee Rate Guarantee End Participants 88 Brown & Brown Insurance, Inc. 370 3yIS �•. 4Wr c,,rY aF sv�+ n�a 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: January 16, 2025 RE: Approval of Selection of 2025 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 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. 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, 2025, 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. Please note that annual amounts presented in this resolution are an approximation based on current Item Number: 9.0 359 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 & LTD) Personnel Services Accounts in each department and/or division. ATTACHMENTS: Resolution Insurance Summary 2025.pdf Final Rate Sheets - 2025.pdf Item Number: 9.0 360