HomeMy WebLinkAboutCity of Tamarac Resolution R-2022-126 Agreement Renewal with Cigna for Stop Loss InsuranceTemp. Reso. #13850
October 26, 2022
Page 1 of 3
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-2022— IA(o
A RESOLUTION OF THE CITY COMMISSION OF
THE CITY OF TAMARAC, FLORIDA, APPROVING
THE RENEWAL OF THE AGREEMENT WITH CIGNA,
AUTHORIZING THE APPROPRIATE CITY
OFFICIALS TO EXECUTE THE AGREEMENT WITH
CIGNA, PROVIDING FOR STOP LOSS INSURANCE;
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, in the summer of 2022, the City's benefits consultant Lockton
Companies competitively marketed the Stop Loss Insurance Coverage for Plan
Year 2023; and
WHEREAS, as a result of marketing Stop Loss Insurance Coverage,
Lockton Companies presented the City with a proposal for stop loss coverage;
and
WHEREAS, after detailed evaluation of the proposal, and with the
assistance of Lockton Companies, Human Resources staff has determined that
CIGNA's proposal provides the City with the most cost-effective program which
includes a level of reinsurance protection that is prudent and appropriate; and
WHEREAS, available funds exist in the appropriate Governmental Funds
which are in the approved FY 2023 Budget to fund the City's Stop Loss
Insurance; and
Temp. Reso. #13850
October 26, 2022
Page 2 of 3
WHEREAS, it is the recommendation of the City Manager, the Director of
Human Resources, and the Director of Financial Services that the City execute a
contract with CIGNA, as described in the Proposal attached as Exhibit A, for Stop
Loss Insurance subject to any revisions as may be negotiated by and between
City staff and CIGNA and as approved by the City Manager and the City Attorney
effective January 1, 2023; and
WHEREAS, the City Commission of the City of Tamarac, Florida deems it
to be in the best interest of the business owners, residents, and visitors of the
City of Tamarac to execute such Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
OF THE CITY OF TAMARAC, FLORID&
SECTION 1: That the foregoing recitals are true and correct and
hereby adopted as the legislative and administrative findings of the City
Commission; all exhibits attached hereto are incorporated herein and made a
specific part of this Resolution.
SECTION 2: The Agreement between the City and CIGNA attached to
this Resolution as Exhibit "A", is approved and the appropriate City Officials are
authorized to execute, extend, or renew the Agreement and expend funds in an
amount not to exceed budgeted funds, or as may be amended by City
Commission.
SECTION 3: That all resolutions or parts of resolutions in conflict
herewith are hereby repealed to the extent of such conflict.
SECTION 4: That if any clause, section, or other part or application of
this Resolution is held by any court of competent jurisdiction to be
Temp. Reso. #13850
October 26, 2022
Page 3 of 3
unconstitutional or invalid, in part or application, it shall not affect the validity of
the remaining portions or applications of this Resolution.
SECTION 5: This Resolution shall become effective immediately upon
adoption.
PASSED, ADOPTED AND APPROVED this �6lday of 0c' c>t3C—r- 2022.
ATTEST:
I ti,
KIMBERLY OILLON, CIVIC
CITY CLERK
MICHELLE J. GO EZ
MAYOR
RECORD OF COMMISSION VOTE:
MAYOR GOMEZ: -fe--S
DIST 1: COMM. BOLTON
DIST 2: V/M GELINsT
DIST 3: COMM. VILLALOBOS
DIST 4: COMM. PLACKO
APPROVED AS TO FORM AND LEGAL SUFFICIENCY FOR THE USE AND RELIANCE
OF THE MITI'( OF TAMARAC ONAY.
JOH INS JR.
CIV ATTORNEY
}Cigna
City of Tamarac
Current Plan Renewal - ASO
11112023
ASO Fees and Stop Loss Rates
TR 13850
EXHIBIT A
Administrative Service Fees
$
21.82
$
21.82
$
21.82 ########
Network Access Fees
$
18.97
$
18.97
$
18.97 $ 88,552
HRA Fee
$
-
$
4.64
$
- $ 6,069
Total PEPM ASO Fee
$
40.79
$
45.43
$
40.79
Employees
276
109
4
Current Annual Administrative & Access Fees
$
135,096
$
59,422 $
1,958
Tj AS 0 -Fees- Proposed
HDHP
rx to12J31)2023
Administrative Service Fees
$
21.82
$
21.82
$ 21.82 eft
0.0%
Network Access Fees
$
18.97
$
18.97
$ 18.97 $ 88,552
0.0%
HRA Fee
$
-
$
4.64
$ - $ 6,069
0.0%
Total PEPM ASO Fee
$
40.79
$
45.43
$ 40.79
Employees
276
109
4
Proposed Annual Administrative & Access Fees
$
135,096
$
59,422 $
1,958 ######
0.0%
Stop Loss
Current $ 103.40 $ 103.40 $ 103.40
$ 482,671
Proposed
$
118.09
$
118.09
$
118.09
$ 551,244
Lives
276
109
4
Proposed Annual Individual Stop Loss
$
391,114
$
154,462
$
5,668
14.2%
' Pooling Point
S 250,000
' Contract Type
Incurred in 12
' Terminal Liability Run -Out Months
24
' Rx Accumulation
Y
'Commissions (Net or %)
Net
Current
$
16.57
$
16.57
$
16.57
$ 77,349
Proposed
$
17,36
$
17.36
$
17-36
$ 81,036
Lives
276
109
4
Proposed Annual Aggregate Stop Loss
$
57,496
$
22,707
$
833
$ 81,036
4.8
"Pooling Point
$ 250,000
' CorridorAmount
118%
' Contract Type
Paid in 12
' Terminal Liability Run -Out Months
0
' Minimum Attachment Percentage
100%
' lb( Accumulation
Y
' Commissions (Net or %)
Net
Current Total Annual Stop Loss
Proposed Total Annual Stop Loss
12.9%
Date Printed. 10,12/2022