HomeMy WebLinkAboutReso 2015-2377 RESOLUTION NO. 2015- 2377
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; HUMANA AS THE PROVIDER FOR DENTAL
INSURANCE AND VISION CARE; LINCOLN FINANCIAL 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$1,915,496.72 which is 17.47%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
WHEREAS, Humana has submitted a proposal for Dental Services at an annual amount
of$120,559.92 which is 5.53% lower than our current rates and employees have the option to
choose from two (2) plans: DMO or PPO; and submitted a proposal for Vision Care at an annual
amount of$18,717.24 which is 10.45% lower than our current rates, and this includes a two-year
rate guarantee; and
WHEREAS, Lincoln Financial has submitted a proposal in an annual amount of
$73,435.27 which is 20% lower than our current rates for Life, Accidental Death and
Dismemberment (AD&D), and Long-Term Disability Insurance; and at the employee's sole cost
the Voluntary Short-Term Disability Insurance and Voluntary Life Insurance, and are offering a
higher guarantee issue ($150,000) than our current provider ($100,000), and this includes a two-
year rate guarantee; and
R2015-Cigna Employee Health Insurance Providers Page 1 of 2
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, 2015.
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 provider, Humana for dental and vision care, and Lincoln
Financial 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 a renewal date of March 1, 2015.
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 19th day of Februa 201..
George '. Scholl, Mayor
ATTEST:
i
Jane nes, MM , City Clerk
APPROV D AS TO FORM AND
LEG' ; / ICIENCY
/////1/
l�% A
H.--s ttinot, l ity Attorney --Moved by: Cp .
Seconded by: `flu-Mayw-Gtrro
Vote: 5j—
Mayor George "Bud" Scholl %/Yes) (No)
Vice Mayor Jeanette Gatto (Yes) (No)
Commissioner Isaac Aelion (Yes) (No)
Commissioner Dana Goldman (Yes) (No)
Commissioner Jennifer Levin ✓(Yes) (No)
R2015-Cigna Employee Health Insurance Providers Page 2 of 2
Insurance Summary Table - 2015
Provider Insurance Type Summary
Cigna originally submitted a renewal proposal for
services in an annual amount of $2,354,358.72 which
is 44.38% higher than our current rates. After extensive
negotiations, Cigna submitted a renewal proposal for
services in an annual amount of $1,915,496.72 which
is 17.47% higher than our current rates. This was the
most competitive proposal received. Employees have
Cigna Medical 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.
Humana submitted a proposal for services in an annual
amount of $120,559.92 which is 5.53% lower than our
Humana Dental current rates. This was the most competitive proposal
received. Employees have the option to choose from
two (2) plans: DMO or PPO.
Humana submitted a proposal for services in an annual
amount of $18,717.24 which is 10.45% lower than our
Humana Vision current rates. This was the most competitive proposal
received. This includes a two-year rate guarantee.
Lincoln Financial submitted a proposal for services in
Life; Accidental an annual amount of $73,435.27 which is 20% lower
Death & than our current rates. This plan also includes the
Lincoln Dismemberment; Employee Assistance Plan, a simple Travel Insurance
Financial Long-Term Plan and an Identity Theft Program. This was the most
Disability; competitive proposal received. They have guaranteed
their rates for two years.
Lincoln Financial submitted the best proposal overall for
voluntary coverage. They are offering a higher
Voluntary Short guarantee issue ($150,000) than our current provider
Lincoln Term Disability ($100,000). They have guaranteed their rates for two
Financial and Voluntary years.
Life Insurance Voluntary Short Term Disability and Voluntary Life
Insurance is at the sole cost of the employee.
CITY OF SUNNY ISLES BEACH
Executive Summary
Current Year Analysis
Medical Plan
As of December,2014,the enrollment totaled 173 employees of which 24 were enrolled in the Lower HMO Plan
Options. Administrative, Medical and Pharmacy Claims totaled$116,488 in December, 2014 which is 86%of the
CIGNA Expected Claims Liability of$134,750.
YTD for the Current Plan Year,the Administrative, Medical and Pharmacy Claims totaled $1,545,701 through
December,2014 which is 115%of the CIGNA Expected Claims Liability of$1,277,183. If claims as costs remain
on budget for the remaining 2 months of the Plan Year,we project the total Administrative, Medical and
Pharmacy Claims to total$1,815,201 which will 112%of the CIGNA Expected Claims Liability of$1,452,699 or a
deficit claims funding of$64,836.
Under the Level Funded Contract, CIGNA would provide a premium credit for the 2015-16 Plan Year of 50%,
after calculation of terminal liability,of any surplus in claims funding for the 2014-15 Plan Year. With paid claims
exceeding claims funding amounts,there will be no premium credit extended by CIGNA under the Level Funded
Contract for the 2014-15 Plan Year.
Medical Plan Utilization Summary
During March—November, 2014,the average enrollment was 167 Employees and 154 Dependents for a total
average Membership of 321. During the same period, 279 members had Medical claims, 269 of which claims
totaled under$10,000. Of the claims paid during this period, 77.5%of claims were paid to CIGNA In-Network
Providers which is below the CIGNA Norm of 88.4%. Medical claims totaled$655,480 during this period,of
which 42 Emergency Room visits contributed to$69,189 or 10.6%of total medical claims utilization.
Pharmacy Plan Utilization Summary
During March—November,2013, 1,578 Pharmacy Scripts were filled totaling$178,125 in paid claims. Of the
total scripts,96.1%were filled at a Retail Pharmacy with the remaining claims being filled through CIGNA's Mail
Order Program. Total claims paid at Retail Pharmacies totaled$85,626 and Mail Order totaled$92,499.40.
Dental Plan
As of November, 2013,the total enrollment in the DPPO is 123. During the period of March—November, 2013,
total premium paid was$71,969.86 and total claims paid was$70,288.60 or a Loss Ratio of 97.7%.
1iPage
11 rr lti f•FtT
Y4tRitAkf♦
Adr CITY OF SUNNY ISLES BEACH
Ancillary Plans (Basic Life and AD&D Voluntary Life, STD & LTD)
As of November,2013,there were 189 employees enrolled in the Basic Life and AD&D Plan. During the period
of March—November,2013,total premium paid was$20,446 and total claims paid was$30,000 or a Loss Ratio
of 146.7%. In a 24 month period ending November, 2013,total premium paid was$49,539 and total claims paid
was$117,000 or a Loss Ratio of 236.2%.
As of November, 2013,there were 189 employees enrolled in the LTD Plan. During the period of March—
November, 2013,total premium paid was$35,616 and total claims paid was$29,582 or a Loss Ratio of 83.1%. In
a 24 month period ending November,2013,total premium paid was$81,758 and total claims paid was$58,403
or a Loss Ratio of 71.4%.
As of November, 2013,there were 94 employees enrolled in the STD Plan. During the period of March—
November,2013,total premium paid was$16,513 and total claims paid was$15,014 or a Loss Ratio of 90.9%. In
a 24 month period ending November,2013,total premium paid was$41,930 and total claims paid was$44,543
or a Loss Ratio of106.2%.
As of November, 2013,there were 79 employees enrolled in the Voluntary Life Plan. During the period of March
—November,2013,total premium paid was$21,983 with No claims paid. In a 24 month period ending
November,2013,total premium paid was$52,750 with No claims paid.
Health Care Reform
Employer Mandate—
The Employer Mandate provision requires Large Employers, classified as 100 or more Full-time Equivalents
(FTEs),comply with the following or be subject to penalties:
• Offer a Minimum Value Plan, defined as having a 60%Actuarial Value,to Full-time Employees
• Offer a Affordable Plan, Employee Annual Contributions cannot exceed 9.5%of Employees Box 1 W-2
Income,to Full-time Employees
• Offer Minimum Essential Benefits to 95%of Full-time Employees
o Minimum Essential Benefits will be determined on a State Level
Under the Employer Mandate, Employers are required to consider all employees who average 30 or more hours
per weeks Full-time for Health Plan purposes. Safe Harbor Provisions have been released in order to assist in
calculating the hours of an Employee to determine his/her Full-time status.
Provisions Still Required
The delay in the Employer Mandate requirement does not affect the insurance market reforms. This means that
the following requirements have been implemented in 2014 with penalties of up to$100 per person per day for
non-compliance. These requirements apply to all plans except as noted:
• Waiting Periods cannot exceed 90 days from the date the Employee becomes eligible for coverage
• Health Plans can no longer include a Pre-Existing Condition limitations
• Health Plan Out-of-Pocket Maximums cannot exceed$6,350 for an Individual and$12,700 for a Family
2IPage
4I1
;a rJ.ti
ril NFFJT
rtnxsrHrr.
441(7..-".. CITY OF SUNNY ISLES BEACH
• Health Plans cannot include an Annual Maximum
• New Wellness Plan Requirements
• Distribution of Summary of Benefits and Coverage (SBC) 60 days prior to Plan Effective Date
• Distribution of DOL Insurance Marketplace Notice by October 1, 2013
• W-2 Reporting of Health Care Costs for all employers issuing 250 or more W-2s
Health Care Reform Fees
The Patient Protection and Affordable Care Act(PPACA) introduces new fees for health insurance companies
and plan sponsors,which began in 2012. The four fees include the Health Insurance Industry Fee, Reinsurance
Assessment Fee, Patient-Centered Outcomes Research Institute Fee (PCORI) and the Federally Facilitated
Exchange User Fee.
Under a CIGNA's Level Funded Arrangement,the City of Sunny Isles Beach would only be responsible for 2 of the
new fees introduced under PPACA,the PCORI and Reinsurance Assessment Fee.
• The PCORI Fee for the 2014 Plan Year would be reported on IRS Form 720 and due on July 31,2015. The
PCORI Fee is a$2 fee for each member based on the average number of members for a single month
over a 12 month period. For the period of March—November, 2014,the membership averaged 321 or a
total due of$642. The PCORI Fee in subsequent years will be tied to increases in the per capita amount
of the national Health Expenditures which has not yet been released.
• The Reinsurance Assessment Fee will be due to the Department of Health and Human Services,
reporting to be determined. The Reinsurance Assessment Fee for 2015 is a$63 fee due for each
member per year($5.25 per member per month)to fund a 3 year reinsurance program to reimburse
insurance companies that insure high-cost members covered through the Insurance Marketplace
(Exchange). For the period of March—November, 2013,the membership averaged 318 or a total due of
$20,034. The Reinsurance Assessment Fee in subsequent years will be adjusted, however, proposed
regulations will discontinue this fee under your Level Funded Arrangement in 2015 moving forward.
Recommendations
Medical Plan
We are recommending renewing with Cigna Health Care.
Due to the high utilization of the Emergency Room,we are recommending that the copays are increased to try
to incentivize the employees to seek care in the Urgent Care setting in lieu of the ER.We have also
recommended a mandatory generic take effect.This will affect three of the highest cost drugs currently being
taken.We do feel that this will cause minimal disruption to your employees, but will greatly help with cost
containment. In addition,we are recommending that the max out of pocket for medical services double from
what it currently is under the 2013-2014 plans and add a RX max out of pocket to each plan,which the plans did
not contain one this year as the copays were continuous. In addition,we are recommending to change the
Major Diagnostic copay from$100 to$150 on the high option and from$0 to$150 on the low option. Less than
5%of the population used these services and we feel it will have little or no impact on the employees.Cigna has
removed the copay for Outpatient Surgery of$200.These services are now only subject to your deductible and
3IPage
NI,FIT
rn::n
uxu.0>rr
,4 CITY OF SUNNY ISLES BEACH
do not have the additional charge which is a benefit. Finally,Cigna has offered the option of the Local Plus
Network which has approximately 10%disruption from the current INOAP network.We have provided a list of
physicians that are included in this disruption and see that 90%of the 10%are mental health providers.This
pairing is at a 17.47%increase over current.
Dental Plan
Cigna originally proposed a 10.62%increase.We were successful in negotiating with no benefit changes to a
4.14%increase. Humana has offered a Dual Option dental plan offering enriching the PPO plan by offering Resin
Composite Fillings on all teeth and an additional 30%benefit after the$1,500 has been exhausted.They in
addition are offering an annual savings of$12,192.44.Our recommendation would be to switch to Humana to
increase the benefit to the employee and cost savings.
Vision Plan
EyeMed was in the middle of a rate pass until 2017. Humana has offered comparable benefits with increased
Contact lens coverage and the option to obtain new frames every 12 months in lieu of the current EyeMed plan
every 24 months.They are offering with the same rate guarantee until 2017 with an annual savings of
$2,183.40.Our recommendation is to move along with the dental to Humana.
Ancillary Plans
Mutual of Omaha was in a rate lock, but we did approach the carrier regarding rate relief as their competitors
were offering comparable benefits at lower pricing. Lincoln has been able to match the current life, LTD,STD
and Vol Life contract,offer a true open enrollment for employees to increase their coverage without evidence of
insurability, a larger guarantee issue on the voluntary life with a 24 month rate guarantee.The change to this
carrier would result in the annual savings of$18,756.37 compared to current pricing. It is our recommendation
to move coverage to Lincoln.
41Page
;air.n
jCf •IT
ip�KiTlltii}
ag
2 Oa
i ttII i 7 §.,§°' W.
< o 1 § 9tl g. g Egg-3
g g BR A 4a
:
o 01 :Es $ 5 � ; PIP M! J Q s O X ,„Q ���� N yN N »" � N fl
"Ea o
g
2 : flg
222 2 ,,; i”
° 3 00 ° maas ..5 e » ' cc0�'� - � < i ` w � � zi g eL 1
!...1,
:1
a > !h ' 'I z $ zz 2 =- » ; ; ;;3, J N o I
of Ale
0 8 g ee f < ?� ° ! $2 flfl. Z S S" E a . Q rn 11 0
o b o f ° - w
31.2
1 i 7 M o a r
i `o $E v q
P,'
E ° R R o K og
Y " N >l i a$
» t38: "2
COQ
2 -
t x ov2g v 8 m 8 i ;
U wLL g . . cS S.� R Nf . m ' n n ti Vii
Ct 010 C N '� 6 K 4 N > j 2 2 2 2 p $ f:51.
CO 3 N & ggg i 3I " N $;
O N C
o � w8
y a E
m w S °« o
o> F
m E j I a ._^
8Q %
O
Jm f'_^ m y t i m, u2 S E
0 if :E8,-,-t•-jaal e 2 62 V. . % :w .I d E E''.3= > N . ! zg Ap
hIlt . P z$�i E rob o g zzz aalA�; 3 6 8 8 8 0 0 s g
0 0 a a 0_0 a m¢ __ O w .¢ °_ w w w LL 1 240
0
M
A
0
D
O
2
M
O
N
co ! A- 1
`G
I I,
8 -`4
-0-
z o ... `. . in 0 -. c g g e at --1.• .-..e .:..e 'R e
5
8
- t' *a2- z <i ffi F.. iii •'- 74
C. ,V., - •-. •-• ^ •-• •-- ,- •-- 8 ,,,,
...
= e.
<0 0,
a 2 2
0 t
03 v, E
CD tr, f:73 GT,
c 6 .
th
.g CD yi
0
>,4
■-• <V e, C
CCI cp
C g , v. v. 4.9 4" -,-.7
un 2 2 2 2 ii4 C I 1 C4
C 6 ,..,
.4. an 6 o
, ..- ..4
E 2
3 c, .... ”.
,,,
Cr) cc) C.)
.4. .2-8
0 S ''' ,-- 7-- sz.,i
>,
d... ›..
vi 8 t
I 5 -..'.
‘..)
c.,
,, "E g 1 •is 8
cc 0 ED. t73
....
8 -.. - ,
em
1.. 5 Z
0 2 1 R
0 • o 2 E 1 ti.' ,17. ga 8 ,.:. a r.
.1... i t
O t S 7., .6
••••
s-
6
ca
-4
E
I t-%-' :
0 `'' :,-;
(..)
0 0
Z 2
..... -1 4.; .xl
CO
t C, .
4.. 8 7,
73 '' g. .1 00 0 2.
a.) ,.._.
69' aiP CIO CC 0
, S .- 8 ,--. a us
n e -, m 4 .' •-: -' in'. t -2 2-
I CV CI c' Ul _.,%
.0 Vli. .Y.I.
1 78
6 .2 c,,
..,,- L'i A - :.-... o a
an t g 75 0 ui
tr, S q
, -
c‘i - .8 . 5
<-4
- 1 2 a
..c
.8.2 2-2
I.. o h 4 :I-
co 3 f I'
T,1 ., = ,;, ,:, -.- 0, ' ' R u2 I IF
E E = ,,,• = g`" .s ig. 4 '''F.,,., c?.. ..g ,;',
= ,, •g. ,,-1 -gip.. 8 8,2, 4,2, E
...>": _ E w x ' 6 S CI E P i r 15 5
.. . ! E
re .6 ..., 2 '' "8
& E E ff E
ii LI, i i
'-• 2 73 = cT cr g 1_ g 5 8
t
. 1 -1 .,-. „--7. 'Fic3 t rt - g = =
§ tri E E
0 2 '' II: t
r' 1 '2. g - i
m ,; Li_
1111
i 2 21.P
•V 0 r5 0 -10 a' E st 'E 2 g 0
0 — .--L-. E 71 = .- e
t
c = i E Y, .g. g B g i .2 ,...4 Ls.
,-2-"' >'1 4 'il 1
-8 2 -c E 2
Efri a' - iS 52Iect ;
di LT 2 I- I 1 ...2 :
2 1.- ■.-
'-----7 ,
r•. t.'
. ......„Al_
a>
0
a -E c "E
o n) 03 a>
Lo E u-> c, cc,
X 64 E 49 69 fag. * Ws* a-- 47i
o 0 0 0 0
= ..... _ .... .5- = 00
=
.0 0 , — —
0 c„,.. xi 0 0_ CL 0..• E o. cL,
0 E 0 0 0
a> fi.) 2 co •zu = =
N-
E E 'Ei .c cc 52 -° X
-47. Ce
c a
1.-.. $
.-- co "r- • 0 e- et
eo _c‘j.----- CV n' • u,• ci 0 r-- 6
e CV
.,.... "- (TI CI)
49 69.;,,a -c6,..
. -
›.. = 4,=.
C
X a*
.. 03 C
Q) CS
> > =
- 7,
U > >. >,i
0;
u. 2
V CO 0 Cd 3 c CcO o ,
o_ o. ca. o.
,2
0 o o o a> 7:3 49
CD 0
c ..._.
C) 0 (_) (,) (..) Td
5 69 696969 cn
> o.,
.,-
0 o =
..= 0
..,
A z..71 C')
C) a> a>
Lo E Lo L o L a g EE 8 Lc>
X 49
e E
0 o 0 o o
c — — — c 0 0'
E o 2
a. -0 a oo. o 0. o 0.
0, .g
U) . -
-a- =
-.) - ,-
_c ct
0.,g
a r-
,-,-, CV CO
0 M M M — ,--.) t.... co .-0
CD • • - or 0,
C) CV
•■-• CV
.... ...R Or
CV (SI ,S 4••■ C0 CO 1.... _
U ›... ,?, 63'Z;Zi.69■•••• ,
a' = )ff,
411 4U a "
CD 04 a) tr.
0 a"
> > 10 >
CO
...,4 >,W ›... >-.. >,-.LU C
m 8 LU 0 ,
..-
CC
lin Z-5 0
0 c c 0
0. 0. 0. 0 c
0 as c
-
-to 0
CD 8 0 0 0
000
0 To
.... ii CC
> VI
— 111
. 2 ga
CO
Z o C) C) CD a>
63
> C '- ,,,... ,... ■-••• 0 t 0 C'')
1
C is 0 Tor,
C CD
CV
4-•
=
49 . .
CO
to..
`- C9 CV C")
o .....
(...)
E E
CD
z =
.=
I—
a,
e E co
I-
C
0 as
,o co to a) c
4-
c 0
+ + c 0
0 43 ct, . f2 z 0 $ if O4 0 c
0
>•••■ 1.1
V)
>•••
6... >,° Z. G $ 8 $ +
> = 7-,, E 0
L) c .... w en J•••• >, Y.."' ....
.1: 5 (1) E
2 r° T‹ g — To a' a> a> c1:5 > ca ;$ 0 o 0 ..?...,B 2•al 0_ (/) W 0 a, ''" 8 = 1-.5 =
ca. ca ca E" 0 0
a.
al cr cr 4.1 'Ica 9 = a
.... ....co ...g. ocue ›sco gr so is er3.4 ti_.. 12 t,i? A Ls2 242? (ma) 02 ,....... 21,0 LuE Li JE LuE 12
E
LU IL
0 .E7 •A A (i) E e.
d g e:
o (0 0 0 >••
L) X Z ill U..
C
0
0
5
tO
T.`
0
CV
=
0
,
as
5
March 2014 Life and Long Term Disability Comparison for The City of Sunny Isles Beach
LIFE&AD&D
Carrier Mutual of Omaha Mutual of Omaha Lincoln
Classed Defined
Class 1: Full-Time City Managers&City Attorney
Class 2: Full-Time Department Managers
Class 3: All Other Full-Time Eligible Employees _
Class 4(CIGNA Only): Mayor or City Commissioner
Life Benefit
Class 1: $300,000 $300,000 $300,000
Class 2: 2 x salary up to$300,000 2 x salary up to$300,000 2 x salary up to$300,000
Class 3: 1 x salary up to$300,000 1 x salary up to$300,000 1 x salary up to$300,000
Class 4:
Guarantee Issue $300,000 $300,000 _ $300,000
Reduction Formula
At Age 65 to 65% to 65% by 35%
At Age 70 _ to 40% to 40% additional 25%
At Age 75 to 25% to 25% additional 15%
Participation Requirements 100% 100% 100%
Rate Guarantee months 12 Months Until 2/29/2016 24 Months
Rates Current Negotiated Renewal
Covered Volume $12,616,950 $12,616,950 $12,616,950
Life Rate per$1,000 $0.20 $0.18 $0.16
AD&D Rate per$1,000 $0.02 $0.02 $0.02
Monthly Premium $2,775.73 $2,523.39 $2,271.05
Annual Premium $33,308.75 $30,280.68 $27,252.61
LONG TERM DISABILITY
Carrier Mutual of Omaha Mutual of Omaha Lincoln
Class Defined
Class 1: Full-Time City&Department Managers&City Attorney
Class 2: All Other Full-Time Employees
Class 3(CIGNA Only): Mayor or City Commissioner
Benefit% 60% 60% 60%
Maximum Monthly Benefit $10,000 $10,000 $10,000
Definition of Disabilty(own occ) ---
Class 1: SSNRA r _ SSNRA MBP
Class 2: 24 Months 24 Months 24 Months
Class 3:
Elimination Period _ 90 days _ 90 days 90 days
Maximum Benefit Period
Class 1&2: SSNRA _ SSNRA Later of 65 or SSNRA
Class 3:
Pre-existing Condition Limitation 3/12 3/12 3/12
r
Mental&Nervous 24 Months 24 Months 24 Months
Survivor income 3 Months 3 Months 3 Months
Participation Requirement 100% 100% '—_ 100%
Rate Guarantee months Until 2/29/2016 Until 2/29/2018 24 Months
Rates Current Negotiated Renewal
Covered Volume $962,139 $962,139 $962,139
LTD Rate per$100 Monthly Benefit $0.51 $0.49 $0.40
Monthly Premium $4,906.91 $4,714.48 $3,848.55
Annual Premium $58 882.89 $56,573.75 $48,182.66
TOTAL MONTHLY PREMIUM $7,682.84 $7,237.87 $6,119.61
TOTAL ANNUAL PREMIUM $92,191.64 $86,854.43 $73,435.27
%Over or Under Current Premium -6% •20%
The information outlined is an overview and is for ilustrative purposes only.
Carrier proposals disclose complete benefit and exclusion information and supersede any and all materials within. 2/9/2015
March 2015 Voluntary Life Insurance Comparison for City of Sunny Isles
Carrier Mutual of Omaha Lincoln
Classes Current
Class I Ail Eligible Employees All Eligible Employees
Benefit
increments of$10,000 to increments of$10,000 to
the lessor of 7 times the lessor of 7 times
Class/Benefit salaray or$500,000 salaray or$500,000
increments of$5,000 to increments of$5,000 to
$250,000,not to ewwed $250,000,not to exceed
50%of employee 50%of employee
Spouse coverage coverage
14 Days to Age 21(Age 14 Days to Age 21(Age
25 if Student):$10,000, 25 if Student):$10,000,
not to exceed 50%of not to exceed 50%of
Children employee coverage employee coverage
$100,000 Employee, $150,000 Employee,
$50,000 Spouse,$10,000$75,000 Spouse,$10,000
Guarantee Issue Child Chad
Minimum participation 28% 28%
Portability Included Included
Rates per$1,000
Under 25 $0.120 $0.120
25-29 50.120 50.120 —30-34 $0.130 50.130
35-39 $0.190 $0.190 _
40-44 50.310 $0.310
45-49 $0.510 $0.510
50-54 $0.770 _ 50.770
55-59 $1.140 $1.140
60-64 _._._. 51.880 .... .............__._..$1.880
65-69 $3400 $3.400
70-74 $4.800 $4.800
75-79 510.380 $10.380
80-84 $10.380 510.380
85-89 510.380 $10.380
90-100 510.380 510.380
Child $0200 $0.200
Rate Guarantee in months Until 2/29/2016 Until 2/29/2016
pk 'The information outlined is based on census data provided.Final rates are subject to underwriting.
µ + * This proposal is illustrative.Policy and certificate of coverage will supersede. 2/9/2015
1
=
u
co
a)
03
U) 0 0
Ta 6
>,
Vs a, 0 ien * 0
'2 5
c
C u CI CI 0
C 43 or 8 t! 2 g z
(7) Li 2
03 .4 •4-
Cl i
■•••
El tO
0
11 1
Z'
1 X
i3 a a
0 ;I
.c
I-
S
c
0
E I
0 LE Z
4.... 111 2 el r (4
0 o
.4" 13
I
a a
n 7.T.:
0
0 z
2
8 1 4:
E g i
w .1 2
1- 2' ig e a
t -,. g I /
0 '43 (1) 1 DI 8 I
.0 c >, i to
6
(.0 43 2 8 x
ca so c g 0 2
E i° E z g 0
a
2
E
g — '6 2 a
c z g . 5 Is 4, 13 ?
= m .
-a 5 2 S' c3.e
0 ta ' ir.fr i 4"
> c
.2 .. E -V 8 0 E -
c 0 ,„3 g , S.
.5 eL ec E 0
c) x .2 ...., .3
..0 U 0 iii _ i 2 g CC
a
6,
as
2
I.
2/13/2015 Item Coversheet
�, -,.4. City of Sunny Isles Beach
-— 18070 Collins Avenue
u ' a Sunny Isles Beach, Florida 33160
,*`* ;;; ,,.� (305)947-0606 City Hall
c� �,0 S' (305)949-3113 Fax
?1. OF SUS '
MEMORANDUM,
TO: The Honorable Mayor and City Commission
VIA: Christopher J. Russo, City Manager
FROM: Yael Y. Londono, HR & Risk Management Director
DATE: 2/19/2015
Approval of Selection of 2015 Insurance Providers:
RE: Cigna (Health); Humana (Dental & Vision); Lincoln
Financial (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); Humana (Dental; Vision); and Lincoln Financial
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:
http.//sunnyisles.novusagenda.com/CoverSheet.aspx?ItemID=1578 1/2
2/13/2015 Item Coversheet
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, 2015, 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.
FUNDING SOURCE:
Various Department Accounts
ATTACHMENTS:
Description
Resolution
Insurance Summary Table
Executive Summary
Rate Sheets
Item Number: 10.H.
http://sunnyisles.novusagenda.com/CoverSheet.aspx?ItemID=1578 2/2