HomeMy WebLinkAboutR-2016-138 Authorizes Agreement for Continuation of City's Medicare Supplemental Insurance Coverage by The Gehring Group as Broker of Record with Aetna, for Coverage from Jan. 1, 2017 - Dec. 31, 2017 RESOLUTION NO. 2016-138
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 CONTINUATION OF 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, 2017 THROUGH DECEMBER 31,
2017 FOR MEDICARE ELIGIBLE RETIRED EMPLOYEES AND THEIR
MEDICARE ELIGIBLE DEPENDENTS; 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 2017 plan
year; and
WHEREAS, the Gehring Group secured Medicare Supplemental Insurance coverage for
the City through Aetna for the plan year 2015-2016 and Aetna has offered a renewal of such
coverage for the Medicare plan year of January 1, 2017 to December 31, 2017; and
WHEREAS, the renewal of coverage from Aetna offers a composite rate for Medicare
Supplemental Insurance coverage for all Medicare eligible retirees, regardless of residence, and
varying prescription rates dependent upon state of residence; and
WHEREAS, based on current Medicare eligible retiree census data, the City's Medicare
Supplemental Medical Insurance plan premium cost will be decreased by twenty nine percent
(29%) and the Medicare Supplemental Prescription Insurance plan premium will increase by
eight percent (8%), resulting in an estimated annual savings of eighteen percent (18%) in
premiums, or an estimated Forty One Thousand Six Hundred Eighty Three Dollars ($41,683.00)
to the City and an estimated Twenty Thousand Eight Hundred Forty One Dollars ($20,841.00) to
Medicare eligible retirees; and the City Administration recommends that the City Commission
approve the renewal of the current 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 Aetna 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:
Location Current 2017 Renewal
Florida Resident $370.08 $247.73
Out-of-State Resident $247.73 $247.73
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:
Location Current 2017 Renewal
Florida Resident $141.49 $152.66
Out-of-State (varies) $13 7.06 to $148.61 $147.71 - $160.5 8
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. 501-1800-519-45-
41 (retirees).
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, 2017.
PASSED AND ADOPTED on October 25, 2016.
ATTEST:
p�rs F�rC�k
O�G
LOUISE STILSON, CMC CO A. SALVINO, SR.
CITY CLERK MAYOR
APPROVED AS TO ORM AND CO S:
THOMA J. A RO
CITY ATTO EY
2 RESOLUTION#2016-138