HomeMy WebLinkAboutCity of Tamarac Resolution R-2005-206Temp. Reso. #10832
October 10, 2005
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CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-2005%2t.Q�
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF TAMARAC, FLORIDA, AUTHORIZING THE
APPROPRIATE CITY OFFICIALS TO RENEW THE
COVERAGE FOR THE CITY'S HEALTH INSURANCE
PROGRAM WITH AETNA US HEALTHCARE FOR THE
PLAN YEAR EFFECTIVE JANUARY 1, 2006; PROVIDING
FOR PREMIUM RATES CHANGES; PROVIDING FOR
THE CONTINUATION OF THE CURRENT COST
ALLOCATION OF THE HEALTH INSURANCE PREMIUM
BETWEEN THE CITY AND EMPLOYEES; PROVIDING
FOR A WAIVER REIMBURSEMENT MAXIMUM;
PROVIDING FOR CONFLICTS; PROVIDING FOR
SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the City's contract with Aetna US Healthcare for health insurance
coverage for employees expires on December 31, 2005; and
WHEREAS, Aetna US Healthcare provided premium rates for the renewal of the
City's health insurance plan for 2006; and
WHEREAS, the City has reviewed our experience with Aetna, and determined
that employees were satisfied with Aetna as its insurance provider; and
WHEREAS, the City reviewed the City's plan design and determined that the
current plan design is appropriate and no plan design changes should be made for
2006; and
WHEREAS, City staff has worked with representatives of Aetna U.S Healthcare
to negotiate the most comprehensive and cost effective health plan for the City's
employees and their dependents; and
Temp. Reso. #10832
October 10, 2005
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WHEREAS, as a result of these negotiations, our overall premium decrease is
8.3% for the HMO and QPOS plans and no premium change for the PPO plan. (See
Exhibits A and B.)
WHEREAS, health insurance rate increases were anticipated and were budgeted
accordingly in the FY 2006 Budget; and
WHEREAS, the City will continue to pay the premium for HMO single coverage in
total, and maintain the current cost allocation on an 80/20 ratio between the City and the
employee for all other coverages so that both the City and the employee bear a portion
of the premium; and
WHEREAS, a waiver reimbursement maximum will allow employees who elect to
purchase insurance through their spouse's employer or otherwise independently from
the City to be reimbursed up to a maximum amount equal to 100% of the single HMO
rate and 80% of the family HMO rate for the plan year beginning January 1, 2006; and
WHEREAS, it is the recommendation of the Director of Human Resources and
the City Manager that the City of Tamarac renew the coverage with Aetna US
Healthcare for health insurance for City of Tamarac employees as described in Exhibits
A and B subject to any revisions consistent with the benefit plan as negotiated by and
between City staff and Aetna US Healthcare and approved by the City Manager and the
City Attorney effective January 1, 2006; and
WHEREAS, the City Commission of the City of Tamarac, Florida deems it to be
in the best interest of the citizens and residents of the City of Tamarac to renew the
coverage with Aetna US Healthcare for health insurance for City of Tamarac employees
as outlined in Exhibits A and B subject to any revisions consistent with the benefit plan
I
I
E
Temp. Reso. #10832
October 10, 2005
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as negotiated by and between City staff and Aetna US Healthcare and approved by the
City Manager and the City Attorney effective January 1, 2006.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY
OF TAMARAC, FLORIDA:
SECTION 1: That the foregoing "WHEREAS" clauses are hereby ratified
and confirmed as being true and correct and are hereby made a specific part of this
Resolution.
SECTION 2: That the appropriate City officials are hereby authorized to
renew the coverage with Aetna US Healthcare for health insurance for City of Tamarac
employees as outlined in Exhibits A and B subject to any revisions consistent with the
benefit plan as negotiated by and between City staff and Aetna US Healthcare and
approved by the City Manager and the City Attorney effective January 1, 2006.
SECTION 3: That the appropriate City officials hereby authorize
continued payment of the total cost of the premium for HMO single coverage and
maintain the current cost allocation of the health insurance premium on an 80/20 ratio
between the City and the employee for all other coverage.
SECTION 4: That the appropriate City officials hereby authorize a waiver
reimbursement maximum, to allow employees who elect to purchase insurance
through their spouse's employer or otherwise independently from the City to be
reimbursed up to a maximum amount equal to 100% of the single HMO rate and 80%
of the family HMO rate for the plan year beginning January 1, 2006.
Temp. Reso. #10832
October 10, 2005
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SECTION 5: That all resolutions or parts of resolutions in conflict
herewith are hereby repealed to the extent of such conflict.
SECTION 6: That if any clause, section, or other part or application of
this Resolution is held by any court of competent jurisdiction to be unconstitutional or
invalid, in part or application, it shall not affect the validity of the remaining portions or
applications of this Resolution.
SECTION 7: This Resolution shall become effective immediately upon
adoption.
PASSED, ADOPTED AND APPROVED this 41 dayof 007)19e-�' 2005.
JOE SCHREIBER
MAYOR
ATTEST:
�v RECORD OF COMMISSION'
MARION SWENSON, CIVIC MAYOR SCHREIBER
CITY CLERK DIST 1: COMM. PORTNER
DIST 2: VIM TALABISCO
DIST 3: COMM. SULTANOF
DIST 4: COMM. ROBERTS-
I HEREBY CERTIFY that
I have approved this
RESOLUTION as to form.
SAM0EL S. GORE7
INTERIM CITY AVORNEY
I
I
Exhibit A
Summary Of Renewal/Proposed Rates
City of Tamarac
Effective January 1, 2006
Policyholder Number - US264234
This exhibit outlines your renewal/proposed rates effective January 1, 2006 through December 31, 2006,
Please refer to the Financial Conditions and Plan Design Exhibits for an outline of the level of benefits
quoted, as well as the terms and conditions of this proposal.
FL - Northern - HMO
Coverage Categories
Assumed
Current Rates
Lproposed Rates
%
Change
Emp Only
Emp + Family
—...Empl
1
0
$346,51
$898.77
$317.81
$824M
-8,3%
-8,3%
TOTAL
1
1 $346,51
$317.81
-8.3%
FL - uth (Miami) - HMO
Coverage Categories
Assumed
Employees
Current Rates
Proposed Rates
%
Change
Emp Only
Emp + Family
147
167
$34651
$898"77
$317. 81
$824M
-8.3%
-8.3%
TOTAL
314
$201,031.56
$184,379.51
-8-3%
FL - S uth (Miami) - QP S
Coverage =Cate, ne,
Assumed
Employees
Current Rates
Pr posed Rates
%
Change
Emp Only
Emp + Family
8
15
$43354
$1,011,45
$397.63 -8.3%
$927.67 -8,3%
TOTAL
23
$18,640-07
$17,096.09 -8.3%
Current Proposed
Employees Premium Premium 0% Change
Monthly Totals 338 $220,018.14 1 $M1,793.41 -8.3%
10/10/2005
Exhibit B
Summary of Monthly Billing Rates
City of Tamarac
PH NO 809520
• Proposed rates are effective January 1, 2006 through January 1, 2007,
Rate Comparison
Annual
Annual
Existing
Premium at
Proposed
Premium at
Lives Rates
Current Rates
Rates
Proposed Rates
PPO
Single Employee 10 $ 501.40
$60,168
$ 501.40
$60,168
Family 16 $ 1,220.88
$234,409
$ 1,220,88
$234,409
26
$294,577
$294,577
TOTAL ANNUAL PREMIUM (PPO) $294,577 $294,677
Renewal Increase 0.0%
10/12/2005