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HomeMy WebLinkAboutReso 2013-2029 RESOLUTION NO. 2013- 20 2 q 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 AND DENTAL INSURANCE; EYEMED AS THE CITY'S PROVIDER FOR VISION CARE; MUTUAL OF OMAHA 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 Humana, 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 following provider proposals: Cigna submitted a proposal for services in an annual amount of $1,289,965.68, representing an overall savings of $40,572.00 annually, which is 5.80% lower than our current rates, and employees have the option to choose from two (2) plans: HMO High or HMO Low; and has proposed rates for Dental at $81,966.39 which would still represent an overall savings over Humana's proposal; and EyeMed has extended their current rates at no additional cost; and WHEREAS, Mutual of Omaha has extended their current rates at no additional cost as the City's provider for life, 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, and Mutual of Omaha reduced the current rate for long term disability insurance to reflect a 4.18% savings for the City; 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, 2013. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: P2013-Cigna Employee Health Insurance Providers Page 1 of 2 Section 1. Approval of City Commission. The City Commission hereby approves the use of Cigna as the City's health care and dental provider, EyeMed for vision care, and Mutual of Omaha as the City's provider for life, disability and 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, 2013. 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 2151 day of February 2013. , 77 Ji _OA i.- arman S. Edelcup, Mayor ATTEST: - 'Jane A. Hines;_CMC, City Clerk APPROVED AS TO FORM AND LEG ` fF IENCY �iu H frier ot. ity Attorney 5 /� . / Moved by: /,/ t C. . ti3or ti-w,0 Seconded by: C'neGD Vote: c-I) Mayor Norman S. Edelcup yLYes) (No) Vice Mayor Isaac Aelion ✓(Yes) (No) Commissioner Jeanette Gatto ✓(Yes) (No) Commissioner Jennifer Levin I/,(Yes) (No) Commissioner George "Bud" Scholl V (Yes) (No) R2013-Cigna Employee Health Insurance Providers Page 2 of 2 Preview Page 1 of 2 $NY ,tt Ao�S, ,Fr P City of Sunny Isles Beach 18070 Collins Avenue V ° Z Sunny Isles Beach, Florida 33160 '4P • !l s° ." (305)947-0606 City Hall et o. 5v, (305)949-3113 Fax MEMORANDUM TO: The Honorable Mayor and City Commission FROM: Yael Y. London, HR/Benefits Administrator DATE: 2/21/2013 RE: Approval of Selection of 2013 Insurance Providers: Cigna (Health & Dental); EyeMed (Vision); Mutual of Omaha (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; Dental); EyeMed (Vision); and Mutual of Omaha 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. The proposed plan represents a savings to the City of$40.572.00. See Attachment "A" (Insurance Summary Table). 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. Department Heads were given an overview of the initial proposals and included in the decision-making process. Further, 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. 2013, provided receipt of City Commission approval. Lastly, all of the recommended providers have an AM Best's Rating of "A" which is http://sibagenda.sibfl.net/Agenda/Preview.aspx?Iteml D=977&Meet ingl D=0&MeetineDate... 2/15/2013 Preview Page 2 of 2 "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: • Insurance Summary Table • Insurance Comparison Sheets http://sibagenda.sibfl.net/Agenda/Preview.aspx?Iteml D=977&Meetingl D=0&MeetingDate... 2/15/2013 : a ,sriw o $ e 4 0m0 . 6 e $ m - . g °6 g i z E � a E u2o ag » � 8 $ » s 3y { w g $ » „ i _ ' E i w - 8 0 all 0 Nw o m 3 o I Q. P. fi e $ S - `° g f e g on . 0 o a $ 3 � R m m w c 0. 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Ile, | 2 S= { 68! dG/� ! | / /} / 528: \/] \\T ] | / /baG !Q! s, Insurance Summary Table Provider Insurance Type Summary Cigna Medical Ciena submitted a proposal for services in an annual amount of 51,289,965.68 which is 5.80% lower than our current rates. The total savings to the City would be approximately S40,571.00 annually. This was the most competitive proposal received. Employees have the option to choose from two (2) plans: HMO High (which has an option for out of network benefits built in to the plan), or HMO Low. Our current provider (Humana) has submitted a proposal in an annual amount of 51,369,334.16, which is a 3.00% increase over our current rates. Cigna Dental Cigna submitted a proposal for services in an annual amount of S81,966.39 which is 2.23% higher than our current rates. This was the most competitive proposal received. This still represents a price decrease as compared to our current provider's proposal. Employees have the option to choose from two (2) plans: DMO or PPO. Our current provider (Humana) has submitted a proposal in an annual amount of 585,061.76, which is a 6.09% increase over our current rates. EyeMed Vision EyeMed has extended their current rates at no additional cost. They have issued a multi-year rate lock for 4 years. Mutual Life/AD&D Mutual of Omaha has extended their current rates at no of Omaha additional cost. We are in our 3rd year of a multi-year rate lock. Mutual LTD Mutual of Omaha has extended their current rates at no of Omaha additional cost. We are in our 3rd year of a multi-year rate lock. Mutual Employee Mutual of Omaha provides a basic EAP as part of their of Omaha Assistance agreement. They have proposed a comprehensive EAP plan Program (EAP) which includes five (5) face to face consults. The additional cost would be S4,731.05. Mutual Voluntary STD Mutual of Omaha has extended their current rates at no of Omaha additional cost. We are in our 3"d year of a multi-year rate lock. Voluntary Short Term Disability insurance is at the sole cost of the employee. Mutual Voluntary Life Mutual of Omaha has extended their current rates at no of Omaha Insurance additional cost. We are in our 3'd year of a multi-year rate lock. Voluntary Life Insurance is at the sole cost of the employee. EyeMed VISION CARE@ .� December 6, 2012 ‘6sikettib City of Sunny Isles Beach 18070 Collins Ave Sunny Isles Beach, FL 33160 2- EyeMed Vision Care 4000 Luxottica P1. Mason. OH 45040 Subject: City of Sunny Isles Beach - Vision Care Renewal- 3/1/2013 Dear Patti. It has been a pleasure to provide your client. City of Sunny Isles Beach with vision care benefits. As we approach the renewal date for the group. 3/1/2013, we would like to discuss continuing service with EyeMed Vision Care. I am recommending a 48 month extension of their current rates and plan design. All we would need is written documentation that they would like to renew as is. An e-mail is acceptable.The current rates and enrollment by tier are listed below. Tier Rate Current Membership Employee Only 55.68 91 Employee +Children 511.32 23 Employee + Spouse 510.76 30 Employee + Family 516.68 30 If you would like to see additional options or you have any questions, please don't hesitate to contact me. By the way, I know we have 174 subscribers enrolled in the plan currently. but can you tell me how many employees are actually eligible? We appreciate the opportunity to provide excellent service to your client's employees. Thank you for recognizing the value and overall wellness benefits a vision care program offers. Sincerely. Brandon Williams Client Support Specialist 513-765-6739 Bwillia5@eyemedvisioncare.com