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HomeMy WebLinkAboutCity of Tamarac Resolution R-2021-125Temp. Reso. 13696 October 27, 2021 Page 1 of 4 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-2021- 1 1 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO RENEW AND EXECUTE AN AGREEMENT WITH CIGNA, PROVIDING FOR ADMINISTRATIVE SERVICES FOR CLAIMS AND FLEXIBLE SPENDING PLANS AND THE EMPLOYEE ASSISTANCE PROGRAM, THE TELEHEALTH CONNECTION PROGRAM AND THE MOTIVATEME VALUE PROGRAM, AND TO MAKE CERTAIN MODIFICATIONS TO THE HEALTH INSURANCE PROGRAM FOR EMPLOYEES AND RETIREES; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City's health insurance was re -structured as a partially self - insured program effective January 1, 2013; and WHEREAS, the City Commission approved the renewal of an agreement with Cigna to provide Administrative Services for Claims and Flexible Spending Accounts, and Employee Assistance Program, and Telehealth Connection Program via Resolution R- 2020-111 at its October 20, 2020 meeting, a copy of such resolution is on file with the City Clerk; and WHEREAS, in the spring of 2021, the City's benefit consultant Lockton Companies competitively marketed the Administrative Services for Claims and Flexible Spending Accounts, and an Employee Assistance Program coverage for Plan Year 2022; and WHEREAS, as a result of the marketing of the Administrative Services for Claims and Flexible Spending Accounts, and an Employee Assistance Program, Lockton Companies presented the City with three (3) proposals for coverage; and WHEREAS, after detailed evaluation of the proposals, and with the assistance of Lockton Companies, City staff has determined that Cigna's proposal provides the City with Temp. Reso. 13696 October 27, 2021 Page 2 of 4 the most cost-effective program which includes a level of reinsurance protection that is prudent and appropriate; and WHEREAS, the City desires to renew their contract with Cigna to provide Administrative Services for Claims and Flexible Spending Accounts, and the Employee Assistance Program, Telehealth Connection Program, and the MotivateMe Value Program, and WHEREAS, the City's Health Insurance Program design will remain substantially the same with respect to cost sharing and the waiver program, and certain modifications to the premiums and Open Access HMO Plan; and WHEREAS, that conditions under which retirees may continue in the City's health plan until Medicare eligibility, include that they must continue to pay the full health insurance premium, and that the retiree's ability to opt into the City's health insurance plan as a retiree may occur only once either (1) upon retirement at separation of service or (2) at some later time after retirement and separation, subject to open enrollment or qualifying life change; and WHEREAS, that eligibility for health insurance and benefit coverage is being extended to employees and their registered domestic partners and their dependents in a registered Domestic Partnership, and premium rates would be the same as the rates an employee would pay to add a spouse and/or dependent children to their coverage, with applicable resulting tax implications; and WHEREAS, available funds exist in the appropriate Governmental Funds which are in the approved FY2022 Budget to fund the City's Health Insurance Program; and WHEREAS, it is the recommendation of the Interim City Manager, the Director of Human Resources, and the Director of Financial Services that the City (1) renew the executed agreement with Cigna for the provision of Administrative Services for Claims and Temp. Reso. 13696 October 27, 2021 Page 3 of 4 Flexible Spending Plans, and the Employee Assistance Program, Telehealth Connection Program and the MotivateMe Value Program as negotiated, and as amended and approved by the Interim City Manager and the City Attorney effective January 1, 2022; and (2) that the Health Insurance Program with the changes as described in the Resolution and back-up documents are implemented effective January 1, 2022; and WHEREAS, the City Commission has deemed it to be in the best interest of the health, safety and welfare of citizens and residents of the City of Tamarac to renew and execute such Agreements and approve the changes to the Health Insurance Program. 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. All exhibits attached hereto are incorporated herein and made a specific part of this Resolution. SECTION 2: That the renewal of the agreement with Cigna is approved and the appropriate City officials are authorized to execute the agreement for the provision of Administrative Services for Claims and Flexible Spending Plans, the Employee Assistance Program, the Telehealth Connection Program and the MotivateMe Value Program. SECTION 3: That the City's Health Insurance Program design will remain substantially the same with certain modifications to the premiums and Open Access HMO Plan. SECTION 4: That conditions under which retirees may continue in the City's health plan include that they must continue to pay the full health insurance premium, and that the retiree's ability to opt into the City's health insurance plan as a retiree may occur Temp. Reso. 13696 October 27, 2021 Page 4 of 4 only once either (1) upon retirement at separation of service or (2) at some later time after retirement and separation, subject to open enrollment or qualifying life change. 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 8: This Resolution shall become effective immediately upon adoption. J�. PASSED, ADOPTED AND APPROVED this Z`1 day of DLIv60' , 2021. - lz�jzl V1�0 - / ICHELLE J. GOM MAYOR ATTEST: JE ER J N , CMC CITY CLERK RECORD OF COMMISSION VOTE: MAYOR GOMEZ DIST 1: COMM. BOLTON .a DIST 2: COMM. GELIN DIST 3: V/M VILLALOBOS Lit/) DIST 4: COMM. PLACKO J I HEREBY CERTIFY that I have approved this RESOLUTION as to form. J HN-R HERIN, JR. MY ATTORNEY PROPOSED HEALTH PLAN DESIGN SUMMARY FOR PY 2022 TR 13696-EXHIBIT A Benefit Highlights Deductible Open Access HMO I In Network Only High DeductiblePlan In Network Out of Network Individual/Family $500/$1,000 $1,500/$3,000 $3,000/$6,000 Coinsurance $0 10% 30% Out -of -Pocket Limit In Network Only In Network Out of Network Individual/Family $3,000/$6,000 $3,000/$6,000 $6,000/$12,000 Lifetime Maximum Unlimited Physician Services In Network Only In Network Out of Network Primary Care Office Visits $25 $0 30% after deductible Specialist Office Visits $40 Well Child Care Office Visits $0 Routine Adult Physical or Well Woman Exam $0 Inpatient $400/admission after deductible 10% after deductible Outpatient Surgery $150 per visit afterdeductible 10% after deductible Emergency Services Network Only In Network Out of Network Emergency Room $300 10% 10% Urgent Care Center $50 10% 30% Convenience Care Clinic $25 $0 30% elehealth $25 $0 N/A Prescription Drugs (30-Day Supply) v Network Only In Network Out of Network Generic $10 N/A Preferred Brand $35 Non -Preferred Brand $65 Mail Order - 90-day supply 2.5x copay PROPOSED MONTHLY PREMIUM STRUCTURE FOR PLAN YEAR 2022 CURRENT Current/mo I ER Share I EE Share PY 2022 Pr000sed/mo I ER Share I EE Share EE Only $661.03 579.72 $81.31 $707.30 620.30 $87.00 EE + Spouse $1,693.33 1,263.22 $430.11 $1,811.86 1,351.65 $460.21 EE+Children $1,467.94 1,095.08 $372.86 $1,570.70 1,171.74 $398.96 Family $1,844.15 1,375.74 $468.41 $1,973.24 1,472.04 $501.20 • •A EE Only $608.15 561.93 $46.22 $608.15 561.93 $46.22 EE+Spouse $1,557.87 1,246.30 $311.57 $1,557.87 1,246.30 $311.57 EE+Children $1,350.51 1,080.41 $270.10 $1,350.51 1,080.41 $270.10 Family $1,696.62 1,357.30 $339.32 $1,696.62 1,357.30 $339.32 TR 13696 EXHIBIT 8 20?2ADMAN15'(iA'[IVY5. �J1CI45/ NI;�'T IOSS,PRQ.IEGTIONS HDHP Medical HMO Medical 2022p►DMIN�STRATNESERVICES DES ASO Fee $21.82 $21.82 Network Access Fees $18.97 $18.97 HRA Fee $4.64 $0.00 Total PEPM $45.43 $40.79 Per Plan ASO Fees $33,254.76 $156,633.60 Combined Annual ASO Fees $189,888.36 242.IND'i/I;.t)t..,S'EiiP IASS PaMIUM n _ .:,1. Individual Stop Loss PEPM $103.40 $103.40 Annual Stop Loss Per Plan $81,892.80 $394,574.40 Total Individual Stop Loss $476,467.20 AWREGA TOP LOSS PREMIUM Aggregate Stop Loss PEPM $16.57 $16.S7 Annual Aggregate Stop Loss Per Plan $13,123.44 $63,231.12 Total Aggregate Stop Loss $76,354.56 Annual Combined Stop Loss $552,821.76 Annual Fixed Costs' $742,710.12 *Annual fixed costs do not represent the cost of administration of Employee Assistance Program (EAP) and the administration of Flexible Spending Accounts (FSA) by Cigna. Estimated administration costs for EAP and FSA are $18,900 for PY 2022.