HomeMy WebLinkAboutReso 2016-2522 RESOLUTION NO. 2016- 25 Z2,
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$2,024,469.48 which is 8.88% 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$119,295.24 which is 4.10% higher 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$19,008.72 which is the same as our current rates; and
WHEREAS, Lincoln Financial has extended their current rates in an annual amount of
$73,000.00 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 a renewal date for the
City's health, dental and other employee insurances of March 1, 2016.
R2016-Cigna Employee Health Insurance Providers Page I 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 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, 2016.
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 18th day of Feb .ry 2016.
George Scholl, Mayor
•: ATTEST:
•
Jane A. Hines, MMC, City Clerk
7 �
APPROVED AS TO FORM AND
LEGAL :j i ENCY
#i
H. s 0 iret, Ci y Attorney
Moved by: _• ....._ _r '
Seconded by:
Vote: CJ-o
Mayor George "Bud" Scholl 1/Yes) (No)
Vice Mayor Jeanette Gatto t/(Yes) (No)
Commissioner Isaac Aelion /(Yes) (No)
Commissioner Dana Goldman 1/f(Yes) (No)
Commissioner Jennifer Levin V(Yes) (No)
R2016-Cigna Employee Health Insurance Providers Page 2 of 2
Insurance Summary Table - 2016
Provider Insurance Type Summary
Cigna originally submitted a renewal proposal for
services in an annual amount of $2,230,879.20 which
is 19.98% higher than our current rates. After extensive
negotiations, Cigna submitted a renewal proposal for
services in an annual amount of$ $2,024,469.48 which
is 8.88% higher than our current rates. This was the
Cigna Medical most competitive proposal received. Employees have
the option to choose from two (2) plans: High Open
Access or Low Open Access. 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 renewal proposal for services in
an annual amount of $119,295.24 which is 4.16%
Humana Dental 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.
Humana has extended their current rates at no
additional cost. Annual amount of$19,008.72
Humana Vision
We are in our 2nd year of a multi-year rate lock.
Life; Accidental Lincoln Financial has extended their current rates at no
Death & additional cost. Annual amount of$73,000.00
Lincoln Dismemberment;
Financial Long-Term
Disability;
Lincoln Financial has extended their current rates at no
Voluntary Short additional cost. Annual amount of$60,000.00
Lincoln Term Disability
Financial and Voluntary Voluntary Short Term Disability and Voluntary Life
Life Insurance Insurance is at the sole cost of the employee.
•
r. E
•
0
7
N
O
J
a)
E
m
n g. 3 31 O '; _i y r a
1 > > ; Tmmmm 0000 = .?'- m m 5 gicg �i DEm023i D omi � g= vva O
o 0 n m m o' Q m 0 $yak 3c ; � $gm!d �'m a m m w�• m` L�' d = c n o -i'm . 1 a O v ?( d w m w 2 m `e Z a g g. 2 o G m g d - m „°� m 2 o 2 m O 7 0 T 1 o 0 m is !p m 2 c a m $ c°- pD O f—2.0. 8 t9 0 n
o Z m n c
o s. w
a e 3 A n .� z lo 8 ,,I C7 El z. E o
c m z 3 -Da 60.°. m v O
8 _ v cn Sc c� a < C
z n 3 Z
to --, m m O'
a r
v � Z
c Q
c £ O
Sjg g c
31; w ca E., 7
z: .e
J€ _ r^ (7 N
n S 3 m m
mP �. N cDa f0
al « . . N = ' ?; Lae ; .. •• zeeg a o
N
IA =41,-,1/21, 2 2 2 2 2 2 N < tl-S$ < s t . u D D D 0, t ' 361 D n.
N O i 'd m d d d d . y _A. N Q O d N O 3' O N D O 9 C 0
n A O `2 N 0 ` . 1 c c a m O O 0 $ 000 g 0 m
8_ _ = o g °
U m IA
t ] y ;? O O 2 m F3 Zu.
!jr. & N ,! ^� 3 9n.
x •
21° g ;;; =' -„, r3? 3Es ? o _� r i V -ET§g,i 000 ? o " > onN 'Dgs 2 m
V mm -8 T m
O g 0 m G n
o °o _ 'S • O o 0
p N O°O
• • G °O O
4! '
9a , 0t., °
nG I
SA =
w to m NE q o 0 �$` 0
�Vwp N N J J J J J N o < ? < . (p dD` N D_ D D yq ±' o 0
m a d d d d d d = = a ae b m3_ Ot�t N ° O 0 0000 ° O N fl$ e . >
p w ( ELF, G Q O 66 -6 jj ° = 6 d
11 = o' m 8 m'
0 c c.- N o
P _ 0 O
]e _ O °
7 O
N t N Ir
b aN m U 4f $ - -
14 A
S �
...--= -=_ = d, 9
p� 3 •
a a a a . ? o o " a ^ _ N 7i a C �, N o
io i. O Q co -"D be _ n nZ < ?, . < g H D n =. 3. > w v .. 2n 8 S 0 °22
A
m 41 t w 3 m N S O 4 ':—.E .o a g b O " n C 0 - ' ° O N h > ; m
N o o u ''' X 0 0 3 aL - 0 � a 0 006 g - 5
6 m
N V
/ O
O
f
N
2.
N
r 3 7
Al
O
O
i Vii A ; m m m m °� 3 m c' cn m 0 p o g c 3 m ii Ifi S Dtd 0`B O
SfR N g g 8 8 m 3 rte}E.fl t o
03 „g-' 9. mVrna
20
to
g tf[[[�gq * I W A O W
., a 1 O `N, ZS M n i O EE V' ai
s �D (2}i C(+' O N i Z . O > w N . 0 n n g Z Z Z Z Z = 01
3'y m N N _ D .n U 8 `-" 22- 2"
n `DD D D D D ()s.
ot
0 y D
-S 5 _
5 a
Si A S0 I N
N N Fh ,a 4, e d' 4 8 8 * e 8 ! ! ! O * p*■ii L p U N m p g ogo � � = c� P
a o
g
0
4a s
W e
N
3 G M w
o
a a a w Z Z Z z Z Z Z Z z O
cc . : : : : n 6 g g.
8q
0 p. ,05.° N , 2 N
T
Ol j O 0 N 8 y j
!Q� !Q� 8 8 O M _eae K a v a s g X ; 8 8 d 8 8 (`l ' ' a 'cam ° 8 R m
m
-ctJ., Co b m m Z v
�tt la la g a
O p . co N
W
D 4 3
• * egg sya 3 e 3.
ad
0
N
O
-7-71.-
1 Z o a m v o @ a) mZ m 1
~ 7 > CD N > = m n
v an 3 m 3 u) 5 m m cm) m cn W - oo cn 0, --. m o g g O'
-`z -0 'ov �i c c av'; � m �' -0 o min �' -0 m i• X N
m
o o-'< .°< ..< << 7 N m m m m m �' N m m x C11 O
a—' + m m m c 0 n o 5 o m m m < O
N + + m j m �< �< o 3 3 CO ma /`
2 � c' m m co N
3 �, m
_ co n
g O
2 I
• o y.CD
gQ
o o
sc 0
o = c o o 4d4 4.9 3 O
= s N cm (A o Z 0
m v m
000 0
a
NC
d v v a)
11 O - CT O CD CJ1 N
m S O co 01 = N------ N-- .. N Na
• -n V 0 M O O O O
V1• O 'O -a 3 CD 3 C C c 3 c
o A c E CS -o -0 CS 'fl
O O C c
CA
O E OO p C O 0 N
g0 O O 3 3 O p GNJ7 Z 0▪ 47
10 a r. 3 ..
• 0
_
a 0 V N
$ $ C.0
. a i I VI
a° o
0 0 En En EA EA
ZD
O y C11 C11 C O
D a) O O O O
Z
El', O- CD• � (A =' v v 3 X a)
= o m
n m .< ...<c m R-
-:.7 0 C = f <
EA
<
Hp- 6 CJl O co . = N - N m-_....__ N Co O co -s d O Cb K M M
o v 0 O Cp ON O �g O O
N p• 7 A 7 ..
W a N ai
.� 3 y CD 3 v' c c c 3 "' c
5 7 y CS 5" 0- -o -0 CS
O O c = c O O
O c O
g' GSA N A 3 cA c to u) 49 Z
C7 CD C3D N 3 cO O 0111 3 01
> > 3 3
m
0
co
0
0
0
March 2016
Life and Long Term Disability Comparison for The City of Sunny Isles Beach
LIFE&AD&D
Carrier 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
Class 2: 2 x salary up to$300,000
Class 3: 1 x salary up to$300,000
Class 4:
Guarantee Issue $300,000
Reduction Formula
At Age 65 by 35%
At Age 70 additional 25%
At Age 75 additional 15%
Participation Requirements 100%
Rate Guarantee(months) 12 months
Rates
Covered Volume $12,910,944
Life Rate per$1,000 $0.16
AD&D Rate per$1,000 $0.02
Monthly Premium $2,323.97
Annual Premium • $27,887.64
LONG TERM DISABILITY
Carrier 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%
Maximum Monthly Benefit $10,000
Definition of Disabilty(own occ)
Class 1: MBP
Class 2: 24 Months
Class 3:
Elimination Period 90 days
Maximum Benefit Period
Class 1 &2: Later of 65 or SSNRA
Class 3:
Pre-existing Condition Limitation 3/12
Mental&Nervous 24 Months
Survivor Income 3 Months
Participation Requirement 100%
Rate Guarantee months 12 Months
Covered Volume $1,004,242
LTD Rate per$100 Monthly Benefit $0.36
Monthly Premium $3,615.27
Annual Premium $43,383.25
TOTAL MONTHLY PREMIUM $5,939.24
TOTAL ANNUAL PREMIUM $71,270.89
Over or Under Current Premium -23%
The information outlined is an overview and is for illustrative purposes only.
Carrier proposals disclose complete benefit and exclusion information and supercede any and all materials within. 2/11/2016
.0
k .
■
CO
■ .
2
Cl, - - - I
co 2
C
E
o t t o 0 ] o\ k - \/
k % 0 0 CI § \ \» § m 2
_>. n & / / Q k�
§ \ �
b ) e \ \
(D & a o
G 567. #
_ _ /\
% = § \ \ /
`
Cl)2 70 CD y
E a . § E 31-51)
\i
2 _ p \ / '11; E k ! )
E % 7 e k ' % i {
4.) a E f / 2 \ 7 ° ) E
c m = a @ aE
o $ E § •I E , & ;_
0 k \ - E \ j• ) E § c ) r
; 0-.7
. x c -
0 w £ s _c _et ,
k
C
0
>
\
a8,!
March 2016 Voluntary Life Insurance Comparison for City of Sunny Isles
Lincoln
Classes
Class I All Eligible Employees
g p oyees
Benefit
increments of$10,000 to
the lessor of 7 times
Class I Benefit salaray or$500,000
increments of$5,000 to
$250,000,not to exceed
50%of employee
Spouse coverage
14 Days to Age 21 (Age
25 if Student):$10,000,
not to exceed 50%of
Children employee coverage
$150,000 Employee,
$50,000 Spouse,$10,000
Guarantee Issue Child
Minimum participation 28%
Portability Included
Rates per$1,000
•
Under 25 $0.120
25-29 $0.120
30-34 $0.130
35-39 $0.190
40-44 $0.310
45-49 $0.510
50-54 $0.770
55-59 $1.140
60-64 $1.880
65-69 $3.400
70-74 $4.800
75-79 $10.380
80-84 $10.380
85-89 $10.380
90-100 $10.380
Child $0.200
Rate Guarantee in months Until 2/29/2017
rown
ro n
BENEFIT The information outlined is based on census data provided.Final rates are subject to underwriting.
COVSULTAN1S This proposal is illustrative.Policy and certificate of coverage will supersede. 2/11/2016
S%'" 'sz$ City of Sunny Isles Beach
ti -'�.6-.-.,\ 18070 Collins Avenue
`; l s:11z• = Sunny Isles Beach, Florida 33160
iP A9),F a¢ S' (305)947-0606 City Hall
car'of s.J,+ hs (305)949-3113 Fax
MEMORANDUM
TO: The Honorable Mayor and City Commission
VIA: Christopher J. Russo, City Manager
FROM: Yael Y. Londono, H.R. & Risk Management Director
DATE: 2/18/2016
Renewal of Health Insurance Contracts with Providers:
Cigna (Health); Humana (Dental &Vision); Lincoln
RE' 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 renewal of health insurance contracts with.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:
Staff worked diligently with our brokers to secure the best pricing and
74
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, 2016, 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:
Description
Insurance Summary Table
Resolution
Proposals
Item Number: 10.C.
75