HomeMy WebLinkAboutR-2017-144 Authorizes the Execution of Agreement for Continuation of the City's Medicare Supplemental Insurance Coverage Procured by the Gehring Group as Broker of Record with Aetna Beginning 01/01/18 RESOLUTION NO. 2017-144
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, 2018 THROUGH DECEMBER 31,
2018 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 2018 plan
year; and
WHEREAS, the Gehring Group secured Medicare Supplemental Insurance coverage for
the City through Aetna for the plan year 2017 and Aetna has offered a renewal of such coverage
for the Medicare plan year of January 1, 2018 to December 31, 2018; 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 increased by Eight Percent (8%) and
the Medicare Supplemental Prescription Insurance plan premium will increase by Fourteen
Percent (14%), resulting in an estimated annual increase of Ten Percent (10%) in premiums, or
an estimated Twenty-One Thousand One Hundred Twenty Dollars ($21,120.00) to the City and
an estimated Ten Thousand Five Hundred Sixty Dollars ($10,560.00) to Medicare eligible
retirees with approximately Three and One-Half Percent (3.5%), or Ten Thousand Dollars
($10,000.00), of the increase being comprised of the newly implemented Patient Protection and
Affordable Care Act(PPACA) Insurance Fee; and
WHEREAS,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 2018 Renewal
Florida and
Out-of-State Resident $247.73 $260.12
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 2018 Renewal
Florida Resident $152.66 $174.59
Out-of-State (varies) $147.71-$160.58 $168.84-$189.79
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.
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Section 6. That this Resolution shall be in force and take effect on January 1, 2018.
PASSED AND ADOPTED on November 14, 2017.
ATTEST:
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LOUISE STILSON, CMC TAMARA JAM
CITY CLERK MAYOR ri
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RATED 1 `
APPROVED AS TO O AND CORRECTNESS:
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THOMAS 4. ANS R
CITY ATTORNPY
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