HomeMy WebLinkAboutCity of Tamarac Resolution R-2017-12011
Temp. Reso. 13022
October 10, 2017
Page 1 of 5
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-2017-
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 AND TELEHEALTH CONNECTION
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 awarded a three (3) year contract with CIGNA
with two (2) one year renewals, to provide Administrative Services for Claims and
Flexible Spending Accounts, and an Employee Assistance Plan via Resolution R-2012-
126 at its November 14, 2012 meeting, a copy of such resolution is on file with the City
Clerk; and
WHEREAS, in the fall of 2017, the City's benefit consultant Lockton Companies
competitively marketed the Administrative Services for Claims and Flexible Spending
Accounts, and an Employee Assistance Plan coverage for Plan Year 2018; and
WHEREAS, as a result of the marketing of the Administrative Services for Claims
and Flexible Spending Accounts, and an Employee Assistance Plan, Lockton
Companies presented the City with three proposals for coverage; and
Temp. Reso. 13022
October 10, 2017
Page 2 of 5
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 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 2018 Budget to fund the City's Health Insurance Program; 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, and Telehealth Connection Program, and
WHEREAS, the City's Health Insurance Program design will remain substantially
the same with respect to cost sharing, the waiver program, and will include an increase
in premiums, and certain modifications to the CIGNA program -wide prescription and
specialty drug programs; 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, available funds exist in the appropriate Governmental Funds which
are in the approved FY2018 Budget to fund the City's Health Insurance Program; and
WHEREAS, it is the recommendation of the 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. 13022
October 10, 2017
Page 3 of 5
Flexible Spending Plans, and the Employee Assistance Program and Telehealth as
negotiated, and as amended and approved by the City Manager and the City Attorney
effective January 1, 2018; and (2) that the Health Insurance Program with the changes
as described in the Resolution and back-up documents are implemented effective
January 1, 2018; 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 appropriate City officials are hereby authorized to renew
the executed contract documents with CIGNA, attached as Exhibit 1, for the provision of
Administrative Services for Claims and Flexible Spending Plans, the Employee
Assistance Program, and Telehealth Connection Program.
Temp. Reso. 13022
October 10, 2017
Page 4 of 5
SECTION 3: That the City's Health Insurance Program design will remain
substantially the same with an increase in premiums, and certain modifications to the
Cigna program -wide prescription and specialty drug programs.
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 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 7: This Resolution shall become effective immediately upon
adoption.
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Temp. Reso. 13022
October 10, 2017
Page 5 of 5
PASSED, ADOPTED AND APPROVED this ' day of fi4W4Y__,2017.
I
ARRY DRESSLER, MAYOR
ATTEST:
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RECORD OF COMMISSION VOTE. -
MAYOR DRESSLER
DIST 1: COMM. BOLTON
DIST 2: COMM. GOMEZ
DIST 3: COMM. FISHMAN �✓
DIST 4: VICE MAYOR PLACKO
I HEREBY CERTIFY THAT I HAVE
APPROVED THIS RESOLUTION
AS TO FORM
UEL S. OMEN
CITY ATTORNEY
V% 410
Cigna.
City of Tamarac
Current Plan Renewal - ASO
11112018
ASO Fees and Stop Loss Rates
Administrative Service Fees
$ 17.88
$ 17.88
$ 17.88 $
75,740
Network Access Fees
$ 21.10
$ 21.10
$ 21.10 $
89,380
Total PEPM ASO Fee
$ 38.98
$ 38.98
$ 38.98
Employees
304
25
24
Current Annual Administrative & Access Fees
$ 142,199
$ 11,694 $
11,226 $
165,119
Administrative Service Fees
$ 17.88 $
17.88 $
17.88 $ 75,740 0.0%
Network Access Fees
$ 21.10 $
21.10 $
21.10 $ 89,380
0.0%
Total PEPM ASO Fee
$ 38.98 $
38.98 $
38.98
Employees
304
25
24
Proposed Annual Administrative & Access Fees
$ 142,199 $
11,694 $
11,226 $ 166,119
0.0%
Stop Loss
Current
$ 106.17 $
106.17 $
106.17 $ 449,736
Proposed
$ 118.64 $
118.64 $
118.64 $ 502,559
Lives
304
25
24
Proposed Annual Individual Stop Loss
$ 432,799 $
35,592 $
34,168 $ 502,659
11.7%
• Pooling Point $
150,000
' Contract Type
Paid
' Rx Accumulation
y
• Commissions (Net or %)
Net
Current
Proposed
Lives
$ 10.76 $
$ 12.48 $
304
10.76 $
12.48 $
25
10.76 $ 45,579
12.48 $ 52,865
24
Proposed Annual Aggregate Stop Loss
$ 45,527 $
3,744 $
3,594 $ 52,865
• Pooling Point $
150,000
• Corridor Amount
118%
. Contract Type
Paid
• Minimum Attachment Percentage
100%
' Rx Accumulation
Y
• Commissions (Net or %)
Net
•
16.0%]
Current Total Annual Stop Loss $ 495,315
Proposed Total Annual Stop Loss $ 555,424
Date Printed- 10116/2017
'''= _lspCigna.
City of Tamarac
Current Plan Renewal - ASO
4011112018
ASL Attachment Point Calculation
Total
Total Adjusted Annual Claims $ 5,303,411
x Corridor 118%
Medical OAPIN Rx
118% 118%
Medical CAN Rx
$ 277,963 $100,698
118% 118%
Medical OAP2 Rx
$ 244.295 S 96,wu
118% 118%
Projected Claims with Corridor 56,258,025
Minimum Attachment Percentage 100%
Projected Illustrative Minimum Attachment Point $6,258,025
Projected Lives 353
304
25
24
Projected Monthly Deductible Factors
$1.074.78 S 407.95
S 1,093.32 S 396.08
$ 1,000.93 $395.63
Projected Combined MDF
S 1,482.73
$1,489.40
$1,396.56
Current Minimum Attachment Point S 5,303,955
Current Corridor 118%
Current Monthly Deductible Factor
S 1,288.21
S 1,3.2 .26
S 1,256.89
MDF Increase
15.10 %
1273 %
11.11 %
The minimum attachment point for the current contract year is the greater of (1) the sum of each month's number of employees multiplied by the
Monthly Deductible Factor(s) or (2) the Minimum Attachment Point. For illustrative purposes, the Minimum Attachment Point, included in the total
claim spend with corridor for the current year, has been calculated with the current month's enrollment times the current Monthly Deductible
Factor(s).
•
Data Printed 10/16/2017