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Home My WebLink About2009 07 27 Regular 600 Health Insurance Proposal for FY2010COMMISSION AGENDA ITEM 600 July 27, 2009 Regular Meeting Consent Informational Public Hearin Re ular X MGR. /DEPT. Authorization REQUEST: City Manager requesting the Commission to consider the Health and related Insurance Proposal for FY 2010. PURPOSE: This agenda item is needed for the Commission to consider the Health and related Insurance Proposal for FY 2010. CONSIDERATIONS: Health Insurance The City is in receipt of Health Insurance quotes for FY 2010 from its current provider, Aetna, as well as other applicable providers. A summary schedule of those quotes is attached herein. Of the quotes submitted, the Florida League of Cities' Florida Municipal Insurance Trust (FMIT) was the lowest responsive bidder. Aetna's quote was at a 13% increase over current rates. The FMIT quote, as it compares to current (FY 2009) monthly rates provided to the City by its Aetna are as follows: Coverage Current FY 2009 Aetna* Proposed FY 2010 FMIT Delta Employee $433.53 $433.08 ($0.45) Employee + Spouse $1,036.55 $1,038.32 $1.77 Employee + Children $1,036.55 $1,038.32 $1.77 Family $1,131.99 $1,134.12 $2.13 */ncludes EAP (Employee Assistance Program) cost at $2.05 per month. FMIT rates above include EAP also. The City currently pays all but $5 of the entire cost of Employee coverage. Additionally, the City currently pays 28% of the difference between the Dependent coverage premium and the Employee coverage premium. For example, if an employee chooses the proposed Family plan, the City would pay $624.37 and the Employee would pay $509.75 per month as follows: City Pay: ($433.08 - $5.00) + 28% x ($1,134.12 - $433.08) _ $624.37. Employee Pay: $5.00 + 72% x ($1,134.12 - $433.08) _ $509.75. This Family coverage scenario represents a slight increase to the employee of $0.93 per pay period, over current rates. An Employee + Spouse and/or Employee + Children scenario would result in an increase to the employee of $0.80 per pay period. (NOTE: The City currently has 57 employees choosing some type of dependent coverage). Employees choosing Employee coverage only would receive no increase. The FMIT's proposal includes benefit levels, co-pays, etc. that are similar to those currently provided to City employees under the Aetna plan, with the following differences: 1. Office visit co-pay: General: $20 reduced to $15. Specialist: $30 reduced to $20. 2. Lifetime Max: Currently: no max. Proposal: $3,000,000 per member. 3. MRI, Cat Scan, etc.: Currently: $30 copay. Proposal: 100% covered. 4. Outpatient Surgery: Currently: $250 copay. Proposal: $100% covered. 5. Emergency Room: Currently: $100 copay. Proposal: $75 copay. 6. Urgent care: Currently: $50 copay. Proposal: $35 copay. 7. Prescription Drugs: Currently: $15/$35/$60. Proposal: $15/$30/$45. 8. Mail Order Drugs: Currently: 2 copays for 90 days. Proposal: 2 1/12 copays for 90 days. 9. Lifestyle Drugs: Currently: Eligible. Proposal: Not eligible. The FMIT Health Insurance Program is provided to member cities in partnership with United Healthcare. Under the FMIT program, City employees would receive United Healthcare ID cards and utilize the United Healthcare network. Life, AD&D & Long-term Disability (City Paid) The City has received a renewal quote from its current provider (Standard) on its Life Insurance Policy at the same benefit levels with a $0.02/$1,000 per month cost reduction. Standard's Accidental Death & Dismemberment renewal quote was at the same rate as currently provided. Standard was the low bidder for these coverages, based on the same benefit levels currently provided. Accordingly, it is recommended that the City retain Standard for this purpose. The City has also received a renewal quote from its current provider (Standard) on its Long-term Disability Policy at the same benefit levels with a $0.09 per month cost reduction. Accordingly, it is recommended that the City retain Standard for this purpose. Dental & Voluntary Benefits (Employee Paid) The City has received renewal quotes from its current provider, Aetna, on its Dental Policies at the same premium cost and benefit levels as currently provided. Aetna was the low bidder for this coverage, based on the same benefits levels currently provided. Accordingly, it is recommended that the City retain Aetna for this purpose. Voluntary Benefits are currently offered by Unum. Current voluntary benefits that the City offers to its employees, at their expense, are short term disability, critical illness and life insurance. I am proposing to add an Accident Policy to the list of voluntary policies that employees may purchase. Premium rates for these coverages are unchanged from current rates. It is recommended that the City continue with Unum for voluntary benefits with the addition of a voluntary Accident Policy. RECOMMENDATION: The City Manager recommends that the City Commission approve: 1. The Florida League of Cities' Florida Municipal Insurance Trust as its Health Insurance provider for FY 2010, based on their submitted plan. 2. Renewal with Aetna for Dental Benefits and Standard for Life Insurance, AD&D & Long-term Disability. 3. Renewal with Unum for Voluntary Benefits with the addition of an Accident Policy. 4. Authorization for the City Attorney and City Manager to prepare and execute all contracts and documents necessary to facilitate the above recommendations. ATTACHMENTS: • Summary of FY 2010 Health Insurance quotes. • Summary of FY 2010 Dental, Life, AD&D, and LTD Insurance quotes. COMMISSION ACTION: ~, ,. I~ kstwork~,eneR_ts Deductl4le (lndivldual /Family] Coinsurance Out of Pocket Max (individual /Family) Copays Appty to Out of Pocket Max Lifetime Max Employee Assistance Program Office Visits Pflmary Office Visit 5peclal Office Visit Diagnostics Routine laboratory (e.g. blood work) Diagnostic Testing {e.g. x-rays) MRI, tat Scan, PET Sean, Nuc. Med Hasplta! & Outpatient Facility inpatient Hospltatl:arion Outpatient Surgical Care Emergency Room Urgent Care Prescription Drugs FormularyGenerie Drugs Formulary Brand-Name Drugs Non-Formulary Brand-Name & Generic Drugs HGH Human Growth Life Style Drugs Matl Order Nex-um Proton Pump Mandatory Generic ~3 r~. ~: Aetna .Aetna Unltetf Healthcare Florida League of does HMO-OpenActess HMO-OpenAaess ~ 7bB PIan38 w ` !a Medical Cc~~~E~~rs€~r~ 2+49 C E T PLAN E~PL4N CitYPaldPlan ~ BuY-Down 0 3 ) NJA NJA i N/A 100% $1,500 / 53,000 Yes Unlimited included $20 Copay $30 Copay 50096 ', 100% 530 Copay 5250 Copay $250 Copay $100 Copay $50 Copay $15 Copay $35 Copay $SO Copay Included ~ Included 2 Copaysfor90 Days Included No 100% $ 2,500 / $ 5,000 Yes Unlimked Included $30 Copay $40 Copay 10046 100% 540 Copay 5250/Day 5 Day Max ', S500 Copay $200 Copay 5100 Copay $20 Copay 540 Copay $70 Copay included Included ~ 2 Copays for 90 Days j included j No I 100% N/A No $5,000,000 Included $20 Copay S20 Copay 10096 100% $50 Capay $250 Copay 100°,6 5100 Copay $50 Copay $10 Copay S30 Copay S60 Copay Included Excluded 21(2 Copays for 90 Days Excluded No N/A 10046 $1,500 / 53,000 No $3,000,000 Included $15 Copay $15 Copay 100% 100% 100% $250 Capay 100% $75 Copay $35 Copay $15 Copay 530 Copay $45 Copay Included Excluded 21/2 Copays for 90 Days Included No ~~Vf NenygrkElenefhs Deductible (IndtYlduai /Famliy) N/A N/A _ i N/A Coinsurance N/A N/A N/A Inparient Hospltall2ation N/A N/A N/A Out of Pocket Max (lndivldual /family) NJA N/A NJA C~+~,,n;Pates Current Rates Employee Only , $433.53 ! $404.19 Employee+Spouse $1,036.55 ~ $966.20 Employee+Chlid{ren) $3,036.55 ! $966.20 FamBy t $1,131.99 ~ $1,055.16 Benewai Rates ~ Renewal Rates Employee Only ~ $488.33 4 $x55.26 $495.69 Employee + Spouse $1,167.93 $1,088.65 $1,186.44 Employee+Child{ran) $1,167.93 ' $1.068.65 $991.3? Famliy $1,275.49 ~ $1,188.90 $1,34838 Medicare Supplement Rete N/A N/A N/A Profestlonal Fees Thiz summary is only Mtended to hlaltlight certain benHits. For a complete description of benefits, please r efer to the Summary Plan Benefits. Final rates arc dependent an actual enrollment. N/A N/A N/A N/A Cigna OAP - In High Plan N/A 100% $1,500 / $3,000 No Unlimited Excluded $20 Copay S30 Copay 10096 lOQ°,6 100% 5250 Copay $250 Copay $100 Copay $50 Copay $15 Copay 535 Copay $60 Copay Included Excluded 2 Copaysfor90 Days Excluded No N/A N/A N/A N/A $433.08 $1,038.32. $1,038.32 $1,134.11 $346.87 $470.80 $1,092.25 $1,016.93 ~e $1,252.33 NJA 7(1/2009 ,~ o ~ i ¢ ~ a r c 7 m ~°i 5~~~~"~ ~ ~w .*°: 3 o. 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