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HomeMy WebLinkAboutR-2022-100 Health Plan Insurance Package FY 22-23 Plan Year Renewal with Florida Municipal Trust RESOLUTION NO. 2022-100 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING THE PROPER CITY OFFICIALS TO EXECUTE AND ACCEPT THE AGREEMENT FOR RENEWAL OF THE CITY'S FULLY INSURED MEDICAL PLAN BROKERED BY THE GEHRING GROUP, AS BROKER OF RECORD FOR THE CITY OF DANIA BEACH, WITH THE FLORIDA MUNICIPAL INSURANCE TRUST, FOR INSURANCE COVERAGES BEGINNING OCTOBER 1, 2022 THROUGH SEPTEMBER 30, 2023, FOR ACTIVELY WORKING AND NON-MEDICARE ELIGIBLE RETIRED EMPLOYEES; AND AUTHORIZING THE CITY TO EXCEED THE ANNUAL VENDOR THRESHOLD 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 group health, dental, and vision insurance for the 2022-2023 plan year; and WHEREAS, the City solicited requests for proposals on May 27, 2022, and proposals were received on June 13, 2022; and WHEREAS, proposals were reviewed by the City's Human Resources and Finance Departments; and WHEREAS, the City Administration, based on the City's claims experience that the Gehring Group reviewed and analyzed, recommends that the City renew medical plans from the Florida Municipal Insurance Trust ("FMIT"), a dental plan from Cigna, a vision plan from EyeMed, Life/AD&D and Long-Term Disability plans from New York Life, and a Short-Term Disability plan administered by the Maxon Companies for the 2022-2023 plan year; and WHEREAS, in consultation with Gehring Group, City Administration also recommends renewing spending account administration with Ameriflex, and the addition of two (2) supplemental plan offerings, including a City-paid Identity Theft solution and a Voluntary Pet Insurance plan; and WHEREAS, based on the City's Collective Bargaining Agreement ("CBA"), effective October 1, 2020, the cost sharing for medical insurance premiums will remain sixteen percent (16%) for employees and eighty four percent (84%) for the City until modified by a subsequent CBA; and WHEREAS, this renewal further allows the twenty-seven (27) Broward Sheriff Office (BSO)Firefighters who have not yet retired and/or are in DROP and the five(5)retired Firefighters on their second tour with BSO,to add their dependents after a second tour with BSO, as requested by the Union, within the flat renewal, (i.e., no increase in premiums to City employees or other retirees); and WHEREAS,based on current employee and non-Medicare eligible retiree census data,the City's annual medical plan premium cost will be remain flat at Two Million Two Hundred Fifteen Thousand Six Hundred Thirty-Seven Dollars ($2,215,637.00); based on current employee and all eligible retiree census data, the City's annual dental insurance premiums remain flat at One Hundred Twenty-One Thousand Eight Hundred Twelve Dollars($121,812.00); annual vision plan premium will remain flat at Fourteen Thousand Nine Hundred Seven Dollars($14,907.00); annual Life/AD&D plan premium will remain flat at Forty-Three Thousand Seven Hundred Twenty-Four Dollars($43,724.00); and annual Long-Term Disability plan premium will remain flat at Twenty- Eight Thousand Seventy-Six($28,076.00) Dollars; and WHEREAS,the total amount of insurance coverage with the Florida Municipal Insurance Trust for Fiscal Year 2022-23 will exceed the annual Twenty Five Thousand Dollars ($25,000.00) City purchase threshold for a single vendor and,therefore, requires City Commission approval; 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 renewal proposal of the Florida League of Cities — Florida Municipal Insurance Trust on behalf of the City to provide fully insured medical coverage to eligible employees and non-Medicare eligible retirees at the following not to exceed monthly rates: Traditional Plan Current Proposed FY 21/22 FY 22/23 Employee only $785.10 $785.10 Employee + 1 $1,548.08 $1,548.08 Family $2,375.58 $2,375.58 2 RESOLUTION#2022-100 High Deductible Health Plan Employee only $678.35 $678.35 Employee+ 1 $1,337.60 $1,337.60 Family $2,052.59 $2,052.59 Section 3. That the proper City officials are authorized to execute appropriate documents to accept the renewal of Cigna on behalf of the City to provide fully insured dental coverage to eligible employees and retirees at the following not to exceed monthly rates: Dental Plan Current Proposed FY 21/22 FY 22/23 Employee only $29.46 $29.46 Employee + 1 $70.30 $70.30 Family $105.46 $105.46 Section 4. That the proper City officials are authorized to execute appropriate documents to accept the renewal of EyeMed on behalf of the City to provide fully insured vision coverage to eligible employees and retirees at the following not to exceed monthly rates: Vision Plan Current Proposed FY 21/22 FY 22/23 Employee only $4.39 $4.39 Employee+ 1 $8.33 $8.33 Family $12.24 $12.24 Section 5. That, for those employees who elect the High Deductible Health Plan, the City will provide Seven Hundred Dollars ($700.00) for employee-only, and One Thousand Four Hundred Dollars ($1,400.00) for dependent coverage, in a Health Savings Account to be used to offset insurance deductibles. 3 RESOLUTION#2022-100 SION 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 renewal proposal of the Florida League of Cities — Florida Municipal Insurance Trust on behalf of the City to provide fully insured medical coverage to eligible employees and non-Medicare eligible retirees at the following not to exceed monthly rates: Traditional Plan Current Proposed FY 21/22 FY 22/23 Employee only $785.10 $785.10 Employee + 1 $1,548.08 $1,548.08 Family $2,375.58 $2,375.58 2 RESOLUTION#2022-100 Section 6. That the City will provide the option of an annual incentive of Four Thousand Dollars($4,000.00)to employees who choose to opt out of the City's Medical Insurance and who provide proof of other group insurance coverage. Section 7. That funding for the cost of the City's health insurance program package is planned and shall be charged to the individual departmental City Health Insurance expenditure accounts (23-10) for active employees and General Fund account 001-18-00-519-45-41 for retirees, respectively. Section 8. That the City Commission authorizes the City to exceed the annual vendor threshold of Twenty-Five Thousand Dollars ($25,000.00) for health insurance program components, as necessitated for Fiscal Year 2022-2023. Section 9. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 10. That this Resolution shall be in force and take effect on October 1, 2022. PASSED AND ADOPTED on July 12. 2022. ATTEST: A�tA 84 ; . \ ,,, THOMAS SCHNEIDER, CMC eV TAMARA J E Y CITY CLERK Nit MAYOR APPROVED AS TO FORM AND CORRECTNESS: EV . BO TSIS CI ATTORNEY 4 RESOLUTION#2022-100 ,400.00) for dependent coverage, in a Health Savings Account to be used to offset insurance deductibles. 3 RESOLUTION#2022-100 SION 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 renewal proposal of the Florida League of Cities — Florida Municipal Insurance Trust on behalf of the City to provide fully insured medical coverage to eligible employees and non-Medicare eligible retirees at the following not to exceed monthly rates: Traditional Plan Current Proposed FY 21/22 FY 22/23 Employee only $785.10 $785.10 Employee + 1 $1,548.08 $1,548.08 Family $2,375.58 $2,375.58 2 RESOLUTION#2022-100 City of Dania Beach Nr. GEHRING GROUP Executive Summary I A RISK STRATEGIES COMPANY 2022/2023 Plan Year Rates CURRENT RENEWAL 84/16 All Active Tiers 84/16 All Active Tiers MEDICAL 3-TIER• 2021-2022 Plan Year 2022-2023 Plan Year PLAN 1 FMIT Choice Plus HDHP Plan 005 FMIT Choice Plus HDHP Plan 005 BASE PLAN Total Employer Employee Total Employer Employee 24 Pay ER 24 Pay EE Employee Only 3 $678.35 $569.81 $108.54 $678.35 $569.81 $108.54 $284.91 $54.27 Employee+1 0 $1,337.60 $1,123.58 $214.02 $1,337.60 $1,123.58 $214.02 $561.79 $107.01 Employee+Family 0 $2,052.59 $1,724.18 $328.41 $2,052.59 $1,724.18 $328.41 $862.09 $164.21. Retiree Only 0 $678.35 $452.23 $226.12 $678.35 $452.23 $226.12 Retiree+1 0 $1,337.60 $891.73 $445.87 $1,337.60 $891.73 $445.87 Retiree+Family 0 $2,052.59 $1,368.39 $684.20 $2,052.59 $1,368.39 $684.20 MONTHLY PREMIUM 3 $2,035.05 $1,709.44 $325.61 $2,035.05 $1,709.44 $325.61 ANNUAL PREMIUM $24,420.60 $20,513.30 $3,907.30 $24,420.60 $20,513.30 $3,907.30 PLAN 2 FMIT Choice Plus Traditional Plan 002 EMIT Choice Plus Traditional Plan 002 BUY-UP PLAN Total Employer Employee Total Employer Employee 24 Pay ER 24 Pay EE Employee Only 54 $785.10 $659.48 $125.62 $785.10 $659.48 $125.62 $329.74 $62.81 Employee+1 29 $1,548.08 $1,300.39 $247.69 $1,548.08 $1,300.39 $247.69 $650.19 $123.85 Employee+Family 39 $2,375.58 $1,995.49 $380.09 $2,375.58 $1,995.49 $380.09 $997.74 $190.05 Retiree Only 29 $785.10 $523.40 $261.70 $785.10 $523.40 $261.70 Retiree+1 7 $1,548.08 $1,032.05 $516.03 $1,548.08 $1,032.05 $516.03 Retiree+Family 7 $2,375.58 $1,583.72 $791.86 $2,375.58 $1,583.72 $791.86 MONTHLY PREMIUM 165 $230,170.86 $184,636.38 $45,534.48 $230,170.86 $184,636.38 $45,534.48 ANNUAL PREMIUM $2,762,050.32 $2,215,636.55 $546,413.77 $2,762,050.32 $2,215,636.55 $546,413.77 TOTAL MONTHLY PREMIUM 168 $232,205.91 $186,345.82 $45,860.09 $232,205.91 $186,345.82 $45,860.09 ANNUAL OPT-OUT INCENTIVE EXP 18 $72,000.00 $72,000.00 $0.00 $72,000.00 $72,000.00 $0.00 TOTAL ANNUAL PREMIUM $2,858,470.92 $2,308,149.85 $550,321.07 $2,858,470.92 $2,308,149.85 $550,321.07 $INCREASE N/A N/A N/A $0.00 $0.00 $0.00 %INCREASE N/A N/A N/A 0.0% 0.0% 0.0% HSA ADMINISTRATION Total Employer Employee Total Employer Employee Single HSA($700) 3 $2,100.00 $2,100.00 $0.00 $2,100.00 $2,100.00. $0.00 Family HSA($1,400) 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 ANNUAL PREMIUM $2,100.00 $2,100.00 $0.00 $2,100.00 $2,100.00 $0.00 $INCREASE N/A N/A N/A $0.00 $0.00 $0.00 %INCREASE N/A N/A N/A 0.0% 0.0% 0.0% DENTAL 3-TIER. Cigna Cigna Total Employer Employee Total Employer Employee 24 Pay ER 24 Pay EE Employee Only 55 $29.46 $24.75 $4.71 $29.46 $24.75 $4.71 $12.38 $2.36 Employee+1 28 $70.30 $59.05 $11.25 $70.30 $59.05 $11.25 $29.53 $5.63 Employee+Family 44 $105.46 $88.59 $16.87 $105.46 $88.59 $16.87 $44.29 $8.44 Retiree Only 42 $29.46 $19.64 $9.82 $29.46 $19.64 $9.82 Retiree+1 38 $70.30 $46.87 $23.43 $70.30 $46.87 $23.43 Retiree+Family 9 $105.46 $70.31 $35.15 $105.46 $70.31 $35.15 MONTHLY PREMIUM 216 $13,086.80 $10,151.02 $2,935.78 $13,086.80 $10,151.02 $2,935.78 ANNUAL PREMIUM $157,041.60 $121,812.30 $35,229.30 $157,041.60 $121,812.30 $35,229.30 $INCREASE N/A N/A N/A $0.00 $0.00 $0.00 %INCREASE N/A N/A N/A 0.0% 0.0% 0.0% VISION 3-TIER* NVA EyeMed Total Employer Employee Total Employer Employee 24 Pay ER 24 Pay EE Employee Only 51 $4.39 $3.69 $0.70 $4.39 $3.69 $0.70 $1.84 $0.35 Employee+1 29 $8.33 $7.00 $1.33 $8.33 $7.00 $1.33 $3.50 $0.67 Employee+Family 44 $12.24 $10.28 $1.96 $12.24 $10.28 $1.96 $5.14 $0.98 Retiree Only 42 $4.39 $2.93 $1.46 $4.39 $2.93 $1.46 Retiree+1 35 $8.33 $5.55 $2.78 $8.33 $5.55 $2.78 Retiree+Family 10 $12.24 $8.16 $4.08 $12.24 $8.16 $4.08 MONTHLY PREMIUM 211 $1,602.35 $1,242.26 $360.09 $1,602.35 $1,242.26 $360.09 ANNUAL PREMIUM $19,228.20 $14,907.16 $4,321.04. $19,228.20 $14,907.16 $4,321.04 $INCREASE N/A N/A N/A $0.00 $0.00 $0.00 %INCREASE N/A N/A N/A 0.0% 0.0% 0.0% BASIC LIFE New York life New York Life Total Employer Employee Total Employer Employee Basic Life Rate/$1,000 $0.180 $0.180 $0.000 $0.180 $0.180 $0.000 Basic AD&D Rate/$1,000 $0.020 $0.020 $0.000 $0.020 $0.020 $0.000 Total Rate/$1,000 $0.200 $0.200 $0.000 $0.200 $0.200 $0.000 Life and AD&D Volume $18,218,500 $18,218,500 $18,218,500 $18,218,500 $18,218,500 $18,218,500 MONTHLY PREMIUM $3,643.70 $3,643.70 $0.00 $3,643.70 $3,643.70 $0.00 ANNUAL PREMIUM $43,724.40 $43,724.40 $0.00 $43,724.40 $43,724.40 $0.00 $INCREASE N/A N/A N/A $0.00 $0.00 $0.00 LONG-TERM DISABILITY New York Life New York Life Total Employer Employee Total Employer Employee Total Rate/$100 $0.320 $0.320 $0.000 $0.320 $0.320 $0.000 Long-Term Disability Volume $731,155 $731,155 $731,155 $731,155 $731,155 $731,155 MONTHLY PREMIUM $2,339.70 $2,339.70 $0.00 $2,339.70 $2,339.70 $0.00 ANNUAL PREMIUM $28,076.35 $28,076.35 $0.00 $28,076.35 $28,076.35 $0.00 $INCREASE N/A N/A N/A $0.00 $0.00 $0.00 ID THEFT NOT CURRENTLY OFFERED lDX Total Employer Employee Total Employer Employee PEPM 142 $6.21 $6.21 $0.00 MONTHLY PREMIUM NOT CURRENTLY OFFERED $881.82 $881.82 $0.00 ANNUAL PREMIUM $10,581.84 $10,581.84 $0.00 $INCREASE N/A N/A N/A $10,581.84 $10,581.84 $0.00 TOTAL PROGRAM SUMMARY Current Renewal Total Employer Employee Total Employer Employee TOTAL MONTHLY PREMIUM $259,053.46 $209,897.51 $49,155.95 . $259,935.28 $210,779.33 $49,155.95 TOTAL ANNUAL PREMIUM $3,108,641.47 $2,518,770.06 $589,871.41 $3,119,223.31 $2,529,351.90 $589,871.41 $INCREASE N/A N/A N/A $10,581.84 $10,581.84 $0.00 %INCREASE N/A N/A N/A 0.3% 0.4% 0.0% 'Enrollment is for illustrative purposes only.Total premium will change based on final enrollment. 1