HomeMy WebLinkAboutR-2020-117 Aetna Renewal 2021 Medicare Supplemental InsuranceRESOLUTION NO.2020-117
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA
BEACH, FLORIDA, AUTHORIZING THE PROPER CITY OFFICIALS TO
EXECUTE AND ACCEPT AN AGREEMENT FOR THE CITY'S MEDICARE
SUPPLEMENTAL INSURANCE COVERAGE PROCURED BY THE
GEHRING GROUP AS BROKER OF RECORD FOR THE CITY OF DANIA
BEACH WITH AETNA, FOR INSURANCE COVERAGE BEGINNING
JANUARY 1, 2021 THROUGH DECEMBER 31, 2021 FOR MEDICARE
ELIGIBLE RETIRED EMPLOYEES AND THEIR MEDICARE ELIGIBLE
DEPENDENTS THAT EXCEEDS AN ANNUAL VENDOR TOTAL AMOUNT
OF TWENTY FIVE THOUSAND DOLLARS ($25,000.00); 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 Supplemental Insurance plan for
Medicare eligible retired employees and their Medicare eligible dependents for the 2021 plan
year; and
WHEREAS, although the City requested the Gehring Group go out for a competitive
bid, due to an error by the Gehring Group in providing the 2021 renewal rates for the product
with the bid request, an unfair competitive bid process occurred and the bid process was
therefore withdrawn; and
WHEREAS, the Gehring Group secured Medicare Advantage PPO coverage for the City
through Aetna for the plan year 2020 and Aetna has offered a renewal of the same plan for the
Medicare plan year of January 1, 2021 to December 31, 2021; and
WHEREAS, the coverage from Aetna offers rates for Medicare Supplemental 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 decreased by an estimated Two Point Eight Per Cent
(2.8%), resulting in an estimated Six Thousand Six Hundred Forty One dollar ($6,641.00)
decrease to the City and an estimated Three Thousand Three Hundred Twenty One dollar
($3,321.00) decrease in cost to Medicare eligible retirees; and
WHEREAS, the City Administration recommends that the City Commission approve the
Aetna Medicare Advantage PPO Medicare Supplemental 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.
Section 2. That the proper City officials are authorized to execute appropriate
documents to accept the proposal of the Aetna Medicare Advantage PPO plan on behalf of the
City of Dania Beach to provide Medicare Supplemental Medical Insurance coverage to Medicare
eligible retirees at the following not to exceed monthly rates:
Current 2021 Renewal
$223.69 $209.15
Section 3. That the proper City officials are authorized to execute appropriate
documents to accept the proposal of Aetna on behalf of the City of Dania Beach to provide
Medicare Supplemental Prescription Insurance coverage to Medicare eligible retirees at the
following not to exceed monthly rates:
Current 2021 Renewal
$187.74 $190.75
Section 4. That funding for the cost of the City's health claims program
administration for Medicare Supplemental Insurance coverage is planned and shall be charged to
the City Health Insurance Fund, Professional Services Account, Account No. 501-18-00-519-45-
41.
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 in force and take effect on January 1, 2021.
2 RESOLUTION #2020-117
PASSED AND ADOPTED on October 13, 2020.
ATTEST:
�4 ,
THOMAS SCHNEIDER, CMC LORI LE
CITY CLERK �+�� ,yo MAYOR
BIIs
APPROVED AS TO FORM AND CORRECTNESS:
THOMAS J.
CITY ATTO
RESOLUTION #2020-117
CITY OF DANIA BEACH
Employee Benefits Insurance Evaluation
DANIA BEACH
SEA IT. LIVE IT, LOVE IT.
RENEWAL RECOMMENDATION FOR:
GROUP MEDICARE INSURANCE
PLAN YEAR EFFECTIVE: January 1, 2021
October 13, 2020
Presented By:
riwm, GEHRING GROUP-
4 BENEFITS I RISK MANAGEMENT
4200 Northcorp Parkway, Ste. 185
Palm Beach Gardens, FL 33410
Tel: (800) 244-3696 Fax: (561) 626-6970
www.gehrin group.com
Medicare Renewal Evaluation & Recommendation
Plan Year Effective: January 1, 2021
The City of Dania Beach currently offers group Medicare Advantage Insurance through Aetna to
its retired employees and their dependents, age 65 and over.
Only Medicare eligible individuals are allowed to enroll in Medicare Plans. If a spouse and/or
dependent is under age 65, he/she will continue to be covered through his/her employer -
sponsored coverage or the City's group health plan with the Florida League of Cities (FM IT).
The current total annual cost of the Medicare Advantage insurance program for the 2020 plan
year (calendar year plan) is approximately $355,476 based on current enrollment of 72 retired
employees/spouses of retired employees. The total projected annual cost of the Medicare
Advantage insurance program for the 2021 plan year is approximately $345,514. This represents
an overall decrease of $9,962 or an decrease of 2.8%. The City subsidizes 2/3 of the cost of
Medicare Advantage insurance, which represents a budget decrease of $6,641 with the retired
employee/spouse enjoying the difference in the total decrease.
The Health Insurer Fee mandated by PPACA in 2020 has been repealed for plan years 2021 and
beyond, making the fee the null and void for the upcoming 2021 plan year and all future plan
years. Any other fully insured Medicare product would also have the Health Insurer fee removed.
The City, through the Gehring Group, did issue a bid to solicit quotes for group Medicare
Advantage insurance from the open market. However this bid was cancelled due to a human
error in providing the 2021 renewal rates for the product with the bid request that resulted in an
unfair competitive bid process. The City will look to reissue this bid for the 2022 plan year. With
the approaching national election cycle, where results could impact the CMS rating tables that
will be reassessed in April 2021, there is no negative impact to the City in postponing this bid.
(The CMS rating tables greatly influence Medicare Advantage premiums as plans are receipients
of CMS reimbursements that help to offset the cost of coordinated care and coverage.)
Gehring Group is recommending that the City renew the Medicare Advantage ESA PPO for the
upcoming plan year effective January 1, 2021.
EXHIBITS
• Medicare Renewal Evaluation
City of Dania Beach
Medicare Advantage for Retired Employees 65 and Over
Effective Date: January 1, 2021
CURRENT
C GEHRING GROUP"
EMPLOYEE BENEFITS I RISK MANAGEMENT
RENEWAL
etworkKA In -Network
N/A N/A
N/A N/A
N/A N/A
N/A N/A
0% 0%
$0 Copayment $0 Copayment
$0 Copayment $0 Copayment
$0 Copayment
$0 Copayment
$0 Copayment
$0 Copayment
$0 Copayment (Days 1-100)
Initial Coverage Limit = $4,020
Catastrophic >=$6,350
$5
$30
$60
N/A
2 x Retail Copay
; All Retiree Rates 100% Composite
$0 Copayment
$0 Copayment
$0 Copayment
$0 Copayment
$0 Copayment (Days 1-100)
Initial Coverage Limit = $4,130
Catastrophic >=$6,550
$30
$60
N/A
2 x Retail Copay
All Retiree Rates 100% Composite
Monthly Premium Per Enrollee 72
$193.85
$209.15
Health Insurer Fee (PPACA)* 72
$29.84
N/A
Monthly Premium
$16,106
$15,059
Annual Premium
$193,268
$180,706
$Increase
N/A
-$12,563
% Increase
N/A
-6.5%
Monthly Premium Per Enrollee 72
Health Insurer Fee (PPACA)* 72
Monthly Premium
Annual Premium
$Increase
% Increase
Combined Medicare Advantage Rate
Combined Monthly Premium
Combined Annual Premium
Combined $ Increase
Combined %increase
All Retiree Rates 100% Composite
$182.54
$5.20
$13,517
$162,207
N/A
N/A
Combined Composite Rate $411.43
$29,623
$355,476
N/A
N/A
*Health Insurer Fee (PPACA) repealed for 2021 plan years and beyond
All Retiree Rates 100% Composite
$190.75
N/A
$13,734
$164,808
$2,601
1.6%
Combined Composite Rate $399.90
$28,793
$345,514
-$9,962
-2.8%