HomeMy WebLinkAboutReso 2017-2659 •
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RESOLUTION NO. 2017- `c
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
SUNNY ISLES BEACH, FLORIDA, APPROVING THE
SELECTION OF UNITED HEALTHCARE 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, after extensive negotiations with the various providers, Brown & Brown
and staff recommend acceptance of the proposal submitted by United Healthcare services in an
annual amount of $2,334,545, which is 15.32% higher than our current rates, 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$132,619.08 which is 7.66% 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, 2017.
R2017 Dental And Vision Insurance Providers REVISED.DocPage 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
United Healthcare 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, 2017.
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 F- eruary • 017.
Gee ge H. Scholl, Mayor
A It !
k ,,,PrdIr Ar
Jane A. 1-tines, MC, City Clerk
APPROVED AS TO FORM AND
LEGAL S 'ICIENCY
//.Z//AY
.'ans'lift'ot, 'ity Attorney nn /-
Moved by: V (Ce I��V`1 0Q ett$0114
Seconded by: eo,tMcLc*JC Ca
Vote:
Mayor Scholl ✓ Yes) (No)
Vice Mayor Goldman ✓ (Yes) (No)
Commissioner Aelion- k(Acre( (Yes) (No)
Commissioner Gatto V (Yes) (No) •
Commissioner Svechin "(Yes) (No)
R2017 Dental And Vision Insurance Providers REVISED.DocPage 2 oft
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Insurance Summary 2017
Provider Insurance Type Summary
Cigna submitted a renewal proposal for services in an
annual amount of $2,480,946.24, which is 22.55%
higher than our current rates. After extensive
negotiations with various providers, staff is
recommending that we enter in to a new agreement
with United Healthcare, who submitted a new proposal
for services in an annual amount of $2,334,545.00,
United which is 15.32% higher than our current rates. This
Healthcare Medical was the 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. United
Healthcare is a nationwide provider with a broad
network of participating physicians.
Humana submitted a renewal proposal for services in
an annual amount of $132,619.08, which is 7.66%
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 3rd 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.
ate=Y=3 F City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
Se p; X° 4e (305)947-0606 City Hall
N
9; r, Ado (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: 2/16/2017
Renewal of Insurance Contracts with Providers: Humana
RE: (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 renewal of insurance contracts with the
following providers: 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
207
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, 2017, 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
Resolution
Insurance Summary Table
Proposals
Item Number: 10.C.
208