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Home My WebLink AboutReso 2026-3947RESOLUTION NO.2026 - 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, 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 (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 $3,694,201.00, 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 $230,386.00, 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 $22,507.00; and WHEREAS, Mutual of Omaha has extended their current rates at no additional cost, in the amount of $105,608.00 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, 2026, for a total amount not to exceed Four Million Two Hundred Fifty -Two Thousand Seven Hundred Two Dollars and No Cents ($4,252,702.00), which includes a contingency in the amount of Two Hundred Thousand Dollars and No Cents ($200,000.00) for any unforeseen increases. @Bd@E8141a6d Page 1 of 2 746 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, 2026, for a total amount not to exceed Four Million Two Hundred Fifty -Two Thousand Seven Hundred Two Dollars and No Cents ($4,252,702.00), 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 this 15th/d'ay of Januar�, 2026. Larisa Svechin, ayor ATTEST; APPROVED AS TO FORM AND LEGAL SUFFICIENCY: 1 Alain E. Boileau, for Nabors, Giblin Mauric o Betancur, CIVIC, City Clerk & Nickerson, P.A., City Attorney Moved by: 6WL,�iU _,& _ Seconded by: LZAILIOP' Vote: Mayor Svechin (Yes) (No) Vice Mayor Lama (Yes) 7' (No) Commissioner Joseph Commissioner Stuyvesant (Yes) (No) (Yes) 4(Yes) (No) Commissioner Viscarra (No) @Bd@E8141a6d Page 2 of 2 747 Employee Benefits Renewal Analysis Renewal Date: 3/1/2026 Medical CURRENT UnitedHealthcare UHC DUBL-M / Rx E27 UHC DU4Y-M / Rx E27 NEGOTIATED RENEWAL - UnitedHealthare UHCEKPS M / FIX E27 UHC EKNK-M / Rx E27 Provider Network .11niSadHeaHhcere:Netwndc. •'•.'i; _Upi(BtlHeanticgreiNetwotk UnitedHeallhcareNelwork UnitedHealthcareNetwork Employee_ Primary Residence `. •Nationwide `- : Nationwide Nationwide Nationwide Calendar Year Deductible .::Enbeddede::; .5 -. .Embedded, �..;; _ _ _ Embedded _ _ _ _ _ Em6ed_ded_ ------ --- Individual Family .51,000: -4zoao -' $250-, '�" $500 :.`. - $1.000 $2,OD0 ----- $250 5500 The Plan Pays - 100%, -'100%": 100% _ 100% Calendar Year Out -of -Pocket Max --Embeddedr '. Etabeddedi Embedded Embedded_ Individual j Family"-""- .` '$6,850": .;; kS13,700' " '. 56,850_• ,r $13700'� - $6.850 $13,700 �__ 56,850 $13,70D Physician & Emergency Care Preventive Care Covered 100%. '.CoVereB100% '' Covered 100% Covered 100% Urgent Care .530 Cop 'y-," _ �, " 530,Ggpliy;` $30 Copay $30 Copay Emergency Room (In or out of network) S500Cepaj/`, ` is 55l>0 GtiR@Y„ $500 Copay. $500 Copay Hospitalization & Outpatient Care _ Inpatient 't'DadudBNe " 525,OPerAdmisBieri;DaAuctible Deductible Per Admission Deductible Outpatient <f_DedJcbble":+ DedUed6(e; ___ _ Deductible _$250 Deductible Physician Fees ,iDedudt$19, ' r De�lUcbble. Deductible Deductible Independent Facility Care Labs Cp1i'erad'I09`>G. 'CoveredlpQ.1•g Covered 100% Covered 100% X-rays P Covered 100% Covered 100% Complex Diagnostic Imaging 4 $154 eopay't., -V SIR C pay $150 Copay $150 Copay Prescription Drugs Tien S,7nC11aYt3.$ .>.a - $7Copay.'; $7Copay $7Copay Tier COW epay!i, $25 Copay. $25 Copay Tier 3 ;;;SqQ CPISeY. ; , t, . - > +t .t a ;.:-_'(t $40 GdRta " $40 Copay $40 Copay Specialty (GH, Self Injectable. etc.) Appl(cabreQoa$jjQr>r, , _ _ ' > ri4pp{kab(e?COtlC,ShafE Applicable Coat Share _ Applicable Cost Share Retail Mail Order- 90 day supply ;�;: ,,. , 25Xfail".,: r, ,5 ,�, '. _ , ,, 2:6Xratall Copay;p„�„?, 2.5x retail copay 2.5x retail Copay a Deductible Individual I Family `1' ;` i t �. kt , 3$YODpi, .`<a..:'$2g00' $1,000 S2,000 The Plan Pays N/A 60%/40% Out of Pocket Max : $13.7P0._ rt,.-:S2i,400, '' $13.700 $27,400 Balance Billing a,.. , Yea . Yes n Employee '- 105% ", -:'; 100%'"" - 105% - 100% Employee + Spouse -. 8D% 76%' - 80% 76 % Employee + Child(ran) Employee + Family 82%; 79% 82%_ 73% 70% _ 73 % 70% Brown & Brown Insurance, Inc. 748 s� w = m. $ h Al 8g s gfi' a < 2 'E ° L r ie :R N 6 T Oo $ o G nz T x w °$ Q 1• O Y t , IVA�„ as �i go+Y Y S f Li, S� gE 5r s I 1 gg a a g 0 ! Y a .M' o5�m '' ao a` 2 O •��o° emu°o I I E � s mmg a l II' u I l i m� b O9 �md sVai3Q43� om3E9oo&8 IL LLE ILLL LLLLIL IL ILL ILLL jl ..1g .3 .3 .I .3 U 55 555 555515.555 h h h h h ....N .... E 8 MI f 5 � � i ! ' °E' SEP EEEEEoN°°;, LL LL LL IC 4 'If: LL LL LL of Il:',LL LL. IL { e o II `°`g � `sl ES�c�agaAg f h U �Ig o o g U N �mm Nti 8'�mio NnN N nmr aw;�N Ii rv��°w�•Yi 'o t [1 0 N 1 � N Nay+yO�� i P T W :aa�E I*. -,jj �mE i. Employee Benefits Renewal Analysis Renewal Date: 3/112026 Vision .in -Network BenefitsComparison Provider Network CURRENT/RENEWAL EyeMed Vision EyeMed --- - - Annual Vision Exam $16 Copay Lenses Single, Bifocal & Trifocal Lenses $15 Copay Progressive Lenses $80'Copay' Frame $130'Allowance; SO% off Remainder' Contact Lenses Contact Lens Exam 8 Fitting $40'Copay Elective Contact Lenses in lieu of lenses/frarnes $150 Allowance,A 0/' off Remainder, ' Available Discounts Laser Vision Correction '159/6 off retail price or 5%off promotional, rice • . . :. Vision Examination Up-3o $40 - - Lenses __ Single Lenses Bifocal Lenses Up tb $39 , U ;to,$50, ' Trifocal Lenses Upito $70, Frame- Up to,$91 Elective Contact Lenses in lieu of fenses/frames Up to $150 Exams 12 mbnt�is ;r . Lenses/Contacts 12 months "' ; Frames _-- 12;rpnnths' HR tici Requirement,,�urrerit panc�ipaUon e Guarantee (from renewal date) 1:yeat _ ation p ate Guarantee End Date '2/2t3%2027 Employee + Spouse 28 . Employee + Child(ren) 35 Employee +Family 22. Enrollment Totals 275' Monthly Premium Employee Employee + Spouse $9.47 _ Employee + Child(ren) Employee + Family $937 $14.65 Monthly Employee Contribution Employee MOO Employee + Spouse Employee + Child(ren) $250 Employee + Family $482 Monthly -Employer Contribution _ Employee $4.99 _ Employee + Spouse Employee + Child(ren) Employee + Family $7.47 $9.83 Total Annual Employer Contribution $19,486 Variance from Current ($) $0 Total Annual Premium $22,607 Variance from Current ($) so Variance from Current %) q`Yt, Brown & Brown Insurance, Inc. 31 750 Employee Benefits Renewal Analysis Renewal Date: 3/1/2026 Group Life/AD&D Schedule of Benefits CURRENTIRENEWAL Mutual of Omaha Class Description All FT City Managers & Attourney's All FT Department Managers i c $500,Qa0, All Other FT Employees 1x S_�la+to.$300 QQQ .0 O,,,,;?'i Guarantee Issue Reduction of Benefits at age 65 e �� jp`f at age 70Y� at age 75 PolicyProvisions Actively at Work Waiver of Premium Portability—rthQtE�q�m e rr `1ti ; F<r Conversion Privilege 4a' MEMO e X low u Employer Contribution M? Participation Requirement a n fir: Rate Guarantee (from renewal date) s, ,, ---- Rate Guarantee End Date.f Estimated Rates & Volume Estimated Life Rate per $1,000 of Coverage "tY sru Estimated AD&D Rate per $1,000 Coverage Estimated Life Volume "62528�;`�;1is: _tsprs Estimated AD&D Volumes,. Estimated -Annual Premium $32,505 Variance from Current ($) $0:, Variance from Current Participants 275 As per IRS Section 79: 1. Premiums paid by employers to fund group insurance in excess of $50,000 are taxable income to employees. 2. Consult with your tax advisor to ensure compliance with Section 79. 3. Active at work requirement: Employees not "actively at work" on the first day of coverage will remain covered under the prior carrier until they meet the "active at work requirement" under the new carrier. Brown & Brown Insurance, Inc. 32 751 l' i t.,; Employee Benefits Renewal Analysis Renewal Date: 3/1/2026 Group VOluntary Life/AD&D Schedule of Benefits CURRENT/RENEWAL Mutual of Omaha Class Description AI[fEligibteErt��loyees;• Employee Minimum Benefit Amount Maximum Benefit Amount U to $500 OOD lotto exceed ZX employee's salary;; , O,OOQ Increments1 Guarantee Issue (GI) Reduction of Benefits at age 65 at age 70 at age 75 Spouse Minimum Benefit Amount $5015d ' r a -_-_ _ Maximum Benefit Amount „i Y i,'U� to'$250 QQD no�toxei�eeed -Increments �. nY''i5 ill �.ik.��iJn' tWT�I�•L1�f�:SiN.r��1�:. �rHJW, . -v..l� Guarantee Issue (GI) Spouse coverage terminates p g InmSh'a�t,_ Children) Maximum Benefit Amount R�iv' i T by,earx)o nt'r_r PolicyProvisionsI Actively at Work Waiver of Premium Portability s_OTHIN00 {;IN t� dsMT;`:M; Via'", ConversionMR,Ine Employer Contribution Participation Requirementarw Rate Guarantee (from renewal date) Rate Guarantee End Date ' ZOR ,' Estimated'A'ates, Life °. 000 Age 1L�pC�Ytrerw,� ;sr�SPe' S -- <24 25-29 a , s 4�gba ,.4; 30-34 - — 35-39 40-44Q }t•�P �3 +?47v4 sba2Q ? ---- 45-49 - --- - 50-54 55-59 60-64 65-69 70-74 ''.I100 $1,.',LOD $3r3GD $3,360 $4 7Ei0 75+ $1 Q 340". file Spouse's rate based upon ,R19YAe,,,_9,,'111 _ AD&DD&D rate per $1,000 of coverage Employee Spouse Children Child(ren) Life rate per $1,000 of coverage $0.03Q $0:204 Participants 69 Brown & Brown Insurance, Inc. 33 752 Employee Benefits Renewal Analysis Renewal Date; 3/1I2026 Voluntary Short -Term Disability Schedule of Benefits CURRENT/RENEWAL Mutual of Omaha Voluntary Short -Term Disability Class Description Benefit Amount All �cdVe fup time employees Working 30+ hauls perWei (c , Benefit Percentage fiQ°lo; Maximum Weekly Benefit 1 yi1Q, r Maximum Weekly Compensation Covered Maximum Annual Compensation Covered Elimination Period egingn Accident ; 1d days . xi3.. c f`1'r115tfidhY.,'y' <` Illness _ 1-- e enefi Payable Benefit Period __a Accident r Illness 1: i7eek5 Policy Provisions Rate Guarantee (from renewal date)"r�Y�s " )`v Rate Guarantee End Date Estimated Rates , Rate per $10 of Weekly Benefit Estimated Volumetf Estimated Annual Premium $26,931 Variance from Current Variance from Current % 0% Participants 101 Brown & Brown Insurance, Inc. 34 753 4n2 I: ui O� 0 Z (a - IN Ui' .41 '0 0 C.) C 0 fN ) C: a E 0 rn Ca f 0 C: V 5 cc -0 C .2 0 M U) 0 a) E < E =3 0 no 0 o < :3 E E 0 0 (D C a) C: as w 0) c 3: 4) 2 :E C 4) 0 'm Lulml I LO m m Insurance Summary 2026 Provider Insurance Type Summary A market review and analysis was conducted to identify opportunities to lower our rates. We received proposals from Aetna, Cigna, and Blue Cross Blue Shield. After careful consideration, alternate renewal rates offered were not significant enough to justify the potential disruption to employees. The recommendation is to remain with United Healthcare for United medical insurance. This will be our second renewal with Healthcare Medical United Healthcare. While the initial renewal formula reflected a 12.3% medical and Rx trend and required an overall 34.9% increase, the HR department and Brown & Brown successfully negotiated the renewal to a 6% increase. Additionally, the renewal includes a $15,000 wellness fund for the March 1, 2026, policy year. Approximate annual amount* of $3,894,201 United Healthcare Dental DHMO plan has extended their current rates at no additional cost. Approximate annual amount* of $25,532 United Healthcare Dental United Healthcare Dental PPO initially reflected a 36.8% Dental increase based on the renewal formula; the HR department and Brown & Brown successfully negotiated the increase down to 30%. Approximate annual amount* of $204,854 Eyemed has extended their current rates at no additional cost. EyeMed Vision Approximate annual amount* of $22,507 Life; Accidental Mutual of Omaha has extended their current rates at no Death & additional cost. Approximate annual amount* of $105,608 Mutual of Omaha Dismemberment; 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. 755 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: Stacy Montalvo, Assistant Human Resources and Risk Management Director DATE: January 15, 2026 RE: Approval of Selection of 2026 Insurance Providers RECOMMENDATION: Staff recommends approval of this Resolution. REASONS: The City offers various insurance plans as a benefit to its employees, promoting health, welfare, and wellness. Accordingly, staff requested the City's insurance broker, Brown & Brown, to issue requests for proposals for insurance coverage at levels comparable to the existing plans. Following an extensive review and negotiations with multiple providers, Brown & Brown and staff recommend acceptance of the provider proposals outlined in 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 informed of any changes, and information and enrollment sessions have been tentatively scheduled to implement the recommended plans effective March 1, 2026, subject to City Commission approval. All recommended providers maintain an AM Best's rating of "A," reflecting financial strength from "Very Good" to "Superior." Additionally, all agreements will be reviewed for form and legal sufficiency by the Office of the City Attorney. A complete set of the final proposals will be maintained on file in the City Clerk's Office. Please note that the annual amounts presented in this resolution are estimates based on current Item Number: 9.J 744 enrollment of active employees, COBRA participants, and retirees. Actual costs may fluctuate throughout the plan year due to new enrollments, dependent additions, or I RS-permitted plan changes. Therefore, this resolution includes a contingency of $200,000 to address potential increases or related 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 Final Rate Sheets 2026 Insurance Summary 2026 Item Number: 9.J 745