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HomeMy WebLinkAboutR-2025-148 Supplemental Medicare Renewal FY 2025-2026; Exceed 50KRESOLUTION NO. 2025-148 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING THE PROPER CITY OFFICIALS TO EXECUTE AND ACCEPT AN AGREEMENT WITH HUMANA FOR THE CITY’S MEDICARE ADVANTAGE INSURANCE COVERAGE, PROCURED BY THE GEHRING GROUP AS BROKER OF RECORD, FOR INSURANCE COVERAGE BEGINNING JANUARY 1, 2026 THROUGH DECEMBER 31, 2026 FOR MEDICARE ELIGIBLE RETIRED EMPLOYEES AND THEIR ELIGIBLE DEPENDENTS THAT EXCEEDS AN ANNUAL VENDOR TOTAL AMOUNT OF FIFTY THOUSAND DOLLARS ($50,000.00); PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Dania Beach obtained the services of the Gehring Group as a Broker of Record to secure coverage for the City’s Medicare Advantage Insurance plan for Medicare eligible retired employees and their Medicare eligible dependents for the 2026 plan year; and WHEREAS, the Gehring Group secured Medicare Advantage PPO coverage for the City through Humana for the plan year 2026; and WHEREAS, the coverage from Humana offers rates for Medicare Advantage Insurance coverage for all Medicare eligible retirees, regardless of residence, including prescription rates; and WHEREAS, based on current Medicare eligible retiree census data, the City’s Medicare Advantage PPO plan premium cost will be increased by an estimated Two Point Seven (2.7%), resulting in an estimated Six Thousand Fifty-Five dollar ($6,055.00) increase to the City and an estimated Three Thousand Twenty-Eight dollar ($3,028.00) increase in total cost to eligible retirees; and WHEREAS, the total expenditures for fiscal year 2025-26 will exceed the annual Fifty Thousand Dollars ($50,000.00) City purchase threshold for a single vendor and, therefore, City Commission approval is required; and WHEREAS, the City Administration recommends that the City Commission approve the Humana Medicare Advantage PPO Medicare Advantage Insurance plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the above “Whereas” clauses are ratified and confirmed as being true and correct, and they are made a part of and incorporated into this Resolution by this reference. RESOLUTION #2025-148 2 Section 2. That the proper City officials are authorized to execute appropriate documents to accept the renewal proposal of the Humana Medicare Advantage PPO plan on behalf of the City of Dania Beach to provide Medicare Advantage Medical and Prescription Insurance coverage to Medicare eligible retirees at the following not to exceed monthly rates: 2025 Renewal Total Premium 2026 Renewal Total Premium $317.29 $325.99 2025 Retiree Monthly Premium 2026 Retiree Monthly Premium $105.76 $108.66 2025 City Monthly Premium 2026 City Monthly Premium $211.53 $217.33 Section 3. That funding for the cost of the City’s health claims program administration for Medicare Advantage Insurance coverage is planned and shall be charged to the City Health Insurance Fund, Professional Services Account, Account No. 001-18-00-519-45- 41. Section 4. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 5. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 6. That this Resolution shall be effective immediately after passage. PASSED AND ADOPTED on September 25, 2025. Motion by Commissioner Ryan, second by Commissioner Lewellen. FINAL VOTE ON ADOPTION: Unanimous X Yes No Commissioner Lori Lewellen ____ ____ Commissioner Luis Rimoli ____ ____ Commissioner Archibald J. Ryan IV ____ ____ Vice Mayor Marco Salvino ____ ____ Mayor Joyce L. Davis ____ ____ RESOLUTION #2025-148 3 ATTEST: ELORA RIERA, MMC JOYCE L. DAVIS CITY CLERK MAYOR APPROVED AS TO FORM AND CORRECTNESS: EVE A. BOUTSIS CITY ATTORNEY City of Dania Beach Medicare Advantage for Retired Employees 65 and Over Effective Date: January 1, 2026 CURRENT RENEWAL ALTERNATIVE #1 ALTERNATIVE #2 UnitedHealthcare UnitedHealthcare Humana Humana Calendar Year Deductible In-Network / Out of Network In-Network / Out of Network In-Network / Out of Network In-Network / Out of Network Single $500 $500 None None Out of Pocket Maximum Single $1,000 $1,000 $4,000 $2,500 Coinsurance 0%0%0%0% Office Visits Primary Care Visit $20 after CYD $20 after CYD $10 Copayment $5 Copayment Specialist Visit $40 after CYD $40 after CYD $20 Copayment $15 Copayment Therapy - PT/ST/OT $40 after CYD $40 after CYD $20 Copayment $15 Copayment Hospital Inpatient $0 after CYD $0 after CYD $150 Copayment $175 Copayment Outpatient $100 after CYD $100 after CYD $50 Copayment $50 Copayment Emergency Room Visit $0 Copayment $0 Copayment $65 Copayment $65 Copayment Physician Services in Hospital $0 after CYD $0 after CYD $0 Copayment $0 Copayment Skilled Nursing Facility $0 after CYD (Days 1-100)$0 after CYD (Days 1-100)$0 (Days 1-20); $75 (Days 21-100)$0 (Days 1-20); $50 (Days 21-100) Rx Deductible: $500 $2,000 Rx OOP Max Rx Deductible: $500 $2,100 Rx OOP Max Rx Deductible: $0 $2,100 Rx OOP Max Rx Deductible: $0 $2,100 Rx OOP Max Tier 1: Preferred Generic $5 $5 $5 $5 Tier 2: Preferred Brand $30 $30 $30 $30 Tier 3: Non-Preferred Drug $60 $60 $60 $60 Tier 4: Specialty $60 $60 33%33% Mail Order (90-Day Supply)$10/$60/$120/$120 $10/$60/$120/$120 $0/$60/$120/33%-30 Day Supply $0/$60/$120/33%-30 Day Supply Medical and Prescription Rate All Retiree Rates 100% Composite*All Retiree Rates 100% Composite*All Retiree Rates 100% Composite*All Retiree Rates 100% Composite* Monthly Premium Per Enrollee 87 $317.29 $440.78 $310.93 $325.99 Monthly Premium $27,604 $38,348 $27,051 $28,361 Annual Premium $331,251 $460,174 $324,611 $340,334 $ Increase N/A $128,924 -$6,640 $9,083 % Increase N/A 38.9%-2.0%2.7% Premium Cost Sharing Annual City Cost Share - Total $220,834 $306,783 $216,407 $226,889 Annual Retiree Cost Share - Total $110,417 $153,391 $108,204 $113,445 Monthly Retiree Cost Share - Per Retiree $105.76 $146.93 $103.64 $108.66 Prescription Drugs - Initial Coverage Limit & Coverage Gap 1