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Home My WebLink AboutCity of Tamarac Resolution R-2016-117Temp. Reso. 12868 October 10, 2016 Page 1 of 3 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-2016-- // 7 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO EXECUTE AN 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 fall of 2016, the City's benefit consultant Willis Employee Benefits competitively marketed the Stop Loss Insurance coverage for Plan Year 2017; and WHEREAS, as a result of the marketing of the Stop Loss Insurance Coverage, Willis Employee Benefits presented the City with five proposals for stop loss coverage; and WHEREAS, after detailed evaluation of the proposals, and with the assistance of Willis Employee Benefits, 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 2017 Budget to fund the City's Stop Loss Insurance; and Temp. Reso. 12868 October 10, 2016 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 1, 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, 2017; 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 execute such Agreement. 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 execute contract documents with CIGNA, as described in the Proposal, attached as Exhibit 1 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 City Attorney. SECTION 3: That all resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. Temp. Reso. 12868 October 10, 2016 Page 3 of 3 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 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 O'V day of , 2016. - - . &"411 HARRY DRESSLER MAYOR ATTEST: PATRICIA TEUF , CMC CITY CLERK RECORD OF COMMISSION VOTE: MAYOR DRESSLER DIST 1: COMM. BUSHNELL DIST 2: COMM. GOMEZ DIST 3: VICE MAYOR GLASSERt'...a DIST 4: COMM. PLACKO I HEREBY CERTIFY THAT I HAVE APPROVED THIS RESOLUTION AS TO FORM Att, 'ri /,e, SA EL GOqN CITY ATTORNE EXHIBIT 1 City of Tamarac Current Plan Renewal - ASO 1/1/2017 ASO Fees and Stop Loss Rates Total JASO Fees - Current Medical Vision Administrative Service Fees $ 17.88 $ 73,594 Network Access Fees $ 21.10 $ 86,848 Total PEPM ASO Fee $ 38.98 $ 0.37 Employees 343 - Current Annual Administrative & Access Fees $ 160 442 $ $ 160,442 Network Access Fees $ 21.10 $ 86,848 0.0% Total PEPM ASO Fee $ 38.98 $ 0.37 Employees 343 - Pr000sed Annual Administrative & Access Fees $ 160,442 $ - $ 160,442 0.00/0 Stop Loss Z22.,� Current Proposed Lives Proposed Annual Individ * Pooling Point * Contract Type * Rx Accumulation * Commissions (Net or Loss $ 150,000 Paid Y Net $ 106.17 $ 106.17 $ 436,996 $ 436,996 Aggregate Current $ 10.76 $ 44,288 Proposed $ 10.76 $ 44,288 Lives 343 Proposed Annual Aggregate Stop Loss $ 44,288 $ 44,288 * Pooling Point $ 160,000 * Corridor Amount 118% * Contract Type Paid * Minimum Attachment Percentage 100% * Rx Accumulation Y * Commissions (Net or %) Net 0.0%I Current Total Annual Stop Loss $ 481,284 Proposed Total Annual Stop Loss $ 481,284 0.00%/. Date Printed: 10/1112016 Y City of Tamarac Current Plan Renewal - ASO vtnot7 High I.— OAPI. T0.1 wted Annual Claims Total Adj$ 4,g94,875 Medical Rx E 259,188 S 90,163 Medical Rx $ 211.754 S 82.229 Medical RX or 1 % 1 17 % 1/ % 118% 118% 118% Protected Clams with Corridor 55,303,953 Minimum Attachment Percentage 100% Projected Illustrative Minimum Attachment Point 55,303,953 Projected Lives 343 26 23 294 Projected Monthly Deductible Factors $ 980.26 S 341.00 $905.33 S 351.56 $949.89 $338.32 Projected Combined MDF $1 321.26 $1.256.89 S1.288.21 Current Minimum Attachment Point S 4,835.977 Current Corridor 118% Current Monthly Deductible Factor $1.240.47 $ 1,167.00 $1.195.16 MDF Increase 6.51 % 7.70 % 7.79 % The minimum attachment pant 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 vdth corridor for the current year. has been calculated with the current month's enrollment times the current Monthly Deductible Factor(s). Wb Pn-1e'11MI.