The URL can be used to link to this page

Home My WebLink AboutR-2021-158 Medicare Supplemental Insurance Coverage for 2022 Agreement with United HealthcareRESOLUTION NO.2021-158 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 UNITED HEALTHCARE, FOR INSURANCE COVERAGE BEGINNING JANUARY 1, 2022 THROUGH DECEMBER 31, 2022, FOR MEDICARE ELIGIBLE RETIRED EMPLOYEES AND THEIR MEDICARE ELIGIBLE DEPENDENTS, WHICH AGREEMENT 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 2022 plan year; and WHEREAS, the Gehring Group secured Medicare Advantage PPO coverage for the City through United Healthcare for the plan year 2022; and WHEREAS, the coverage from United Healthcare 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 thirty three point seven percent (33.7%), resulting in an estimated Seventy Nine Thousand Dollar ($79,000.00) decrease to the City and an estimated Thirty Nine Thousand Dollar ($39,000.00) decrease in cost to Medicare eligible retirees; and WHEREAS, the City Administration recommends that the City Commission approve the United Healthcare 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 United Healthcare Medicare Advantage PPO plan on behalf of the City of Dania Beach to provide Medicare Supplemental Medical and Prescription Insurance coverage to Medicare eligible retirees at the following not to exceed monthly rates: Current 2022 Proposal $399.90 $265.24 Section 3. 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 4. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 5. That this Resolution shall be in force and take effect on January 1, 2022. PASSED AND ADOPTED on October 26, 2021. ATTEST: THOMAS SCHNEIDER, CMC CITY CLERK F.11 W W tIC610 a• WA •-1103emu :�• K•`_� •M►� .� J. TAMARA J MAYOR 2 RESOLUTION 42021-158 CITY OF DANIA BEACH Employee Benefits Insurance Evaluation DANIA BEACH SEA IT. LIVE IT. LOVE IT. RECOMMENDATION FOR: GROUP MEDICARE INSURANCE PLAN YEAR EFFECTIVE: January 1, 2022 October 26, 2021 Presented By: C�mr GEHRIENGRGROEUP 3500 Kyoto Gardens Dr. Palm Beach Gardens, FL 33410 Tel: (800) 244-3696 Fax: (561) 626-6970 www.gehringgroup.com Medicare RFP Evaluation & Recommendation Plan Year Effective: January 1, 2022 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 (FMIT). The City, through the Gehring Group, issued a bid to solicit quotes for group Medicare Advantage insurance from the open market. As a result of this bid process, the City received a proposal from United Healthcare at an annual cost of approximately $232,350 based on current enrollment of 73 retired employees/spouses of retired employees. This represents an overall decrease of $118,000 or a decrease of 33.7% from the current rates. Retirees can see any Medicare provider that accepts Medicare, regardless of whether or not they are contracted with United Healthcare. Additionally, copays for medical services and out of pocket maximums will remain the same. While United Healthcare proposed various plan options, ultimately the decision was made to go with the plan that offered the most robust drug benefit while still resulting in significant savings to the City and its retirees. The City subsidizes 2/3 of the cost of the Medicare Advantage insurance, and the other 1/3 of the plan cost is paid by the retirees. The total cost to the City for the proposed United Healthcare Medicare Advantage PPO plan is $154,900 (2/3 of total $232,350 cost), and represents an overall decrease of approximately $79,000 (2/3 of total $118,000 decrease). Gehring Group is recommending that the City accept the proposal of the United Healthcare Medicare Advantage PPO insurance plan for the upcoming plan year effective January 1, 2022. EXHIBITS • Medicare RFP Evaluation City of Dania Beach G E H R I N G GROUP' Medicare Advantage for Retired Employees 65 and Over 1W.A EMPLOYEE BENEFITS I RISK MANAGEMENT Effective Date: January 1, 2022 CURRENT RECOMMENDATION Aetna Medicare Advantage .O 0, . . Advantage PPO Plan 2 Calendar Year Deductible In-Network :�� N i -etwork _ Single N/A N/A Family N/A N/A Out of Pocket Maximurii Single N/A N/A Family N/A N/A Coinsurance 0% 0% Zil Office Visits , vilwal FINIS z: Primary Care Visit $0 Copayment $0 Copayment Specialist Visit $0 Copayment $0 Copayment Inpatient $0 Copayment $0 Copayment Outpatient $0 Copayment $0 Copayment Emergency Room Visit $0 Copayment $0 Copayment Physician Services in Hospital $0 Copayment $0 Copayment Skilled Nursing Facility $0 Copayment (Days 1-100) $0 Copayment (Days 1-100) .: . Prescription Drugs - Initial Coverage Limit = $4,130 Initial Coverage Limit = $4,430 Initial Coverage Limit & Coverage Gap Catastrophic > $6,550 Catastrophic >=$7,050 Tier 1 $5 $5 Tier 2 $30 $30 Tier 3 $60 $60 Tier 4 Tier 1-3 $60/$60/$60 Mail Order 2 x Retail Copay Tier 1: $30; Tier 2-3: 2 x Retail Copay Medical Monthly Premium Per Enrollee 73 $209.15 $265.24 Monthly Premium $15,268 $19,363 Annual Premium $183,215 $232,350 $Increase N/A N/A % Increase N/A N/A Prescription All Retiree Rates 100% Composite All Retiree Rates 100% Composite Monthly Premium Per Enrollee 73 $190.75 Included in Medical Monthly Premium $13,925 $0 Annual Premium $167,097 $0 $Increase N/A N/A % Increase N/A N/A Combined Medicare Advantage Rate Combined Composite Rate $399.90 Combined Composite Rate $265.24 Combined Monthly Premium $29,193 $19,363 Combined Annual Premium $350,312 $232,350 Combined $ Increase N/A -$117,962 Combined %Increase N/A -33.7%