HomeMy WebLinkAboutCity of Tamarac Resolution R-2015-116Temp. Reso. 12729
November 3, 2015
Page 1 of 3
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-2015-- I I (p
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 October, 2015, the City's benefit consultant Willis
Employee Benefits competitively marketed the Stop Loss Insurance coverage for
Plan Year 2016; 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 2016 Budget to fund the City's Health Insurance
Program; and
Temp. Reso. 12729
November 3, 2015
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, 2016; 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. 12729
November 3, 2015
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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.
`i
PASSED, ADOPTED AND APPROVED this 0 day of PA-L" ' 2015.
HARRY DRESSLER
MAYOR
ATTEST:
PATRICIA TEUF , CMC
CITY CLERK
RECORD OF COMMISSION VOTE:
MAYOR DRESSLER�J
DIST 1: VICE MAYOR BUSHNELL
DIST 2: COMM. GOMEZ 7
DIST 3: COMM. GLASSER
DIST 4: COMM. PLACKO
I HEREBY CERTIFY THAT I HAVE
APPROVED THIS RESOLUTION
AS TO FORM
SAMUELS.GOREN
CITY ATTORNEY
EXHIBIT 1
City of Tamarac
Current Plan Renewal - ASO
11112016
ASO Fees and Stop Loss Rates
%0 61
;. (-:_Cigna,.
ASO Fees - Current Medical Vision Total
Administrative Service Fees $ 17.88 $ 72,307
Network Access Fees $ 21.10 $ 85,328
Total PEPM ASO Fee $ 38.98 $ 0.37
Employees 337 -
Current Annual Administrative & Access Fees $ 157,635 $ $ 157,635
Administrative Service Fees $ 17.88 $ 72,307 0.0 0
Network Access Fees $ 21.10 $ 85,328 0.0%
Total PEPM ASO Fee $ 38.98 $ 0.37
Employees 337 -
Proposed Annual Administrative & Access Fees $ 157,635 $ - $ 157,635 0.0%
Stop Loss
Total
.. Loss
Current
Medical
$ 115.10 $ 465,464
Proposed
$ 106.17 $ 429,351
Lives
337
Proposed Annual Individual Stop Loss
$ 429,351 $ 429,351
-7.8%
* Pooling Point $
150,000
* Contract Type
Paid
* Rx Accumulation
Y
* Commissions (Net or %)
Net
Aggregate Stop Loss Medical Total % Change
Current $ 9.11 $ 36,841
Proposed $ 10.76 $ 43,513
Lives 337
Proposed Annual Aggregate Stop Loss $ 43,513 $ 43,513 18.1%
* Pooling Point $ 150,000
* Corridor Amount 118%
*Contract Type Paid
* Minimum Attachment Percentage 100%
* Rx Accumulation Y
* Commissions (Net or %) Net
Current Total Annual Stop Loss $ 502,305
Proposed Total Annual Stop Loss $ 472,865 1 -5.9%
Date Printed: 11/4/2015
EXHIBIT 1
Cigna.
City of Tamarac
Current Plan Renewal - ASO
11112016
ASL Attachment Point Calculation
•
Total Adjusted Annual Claims $4,193,066
$240,747 $66. t-
$203,98. $63,716
Rx
;ice
x Corridor 118%
118% 118%
118% 118%
118% 118%
Projected Claims with Corridor $4,947,818
Minimum Attachment Percentage 100%
Projected Illustrative Minimum Attachment Point $4,947,818
Projected Lives 337
24
22
291
Projected Monthly Deductible Factors
$ 986,39 $ 273.66
$ 911.73 $ 284.79
$ 950,96 $ 271.56
Pra'ected Combined MDF
$ 1 260,05
$ 1 196.52
$ 1 222.52
Current Minimum Attachment Point $ 4,979.795
Current Corridor 118%
Current Monthly Deductible Factor
$ 1,269,26
$ 1,185.97
$ 1,231.27
MDFlncrease
0.73 %
0.89 %
0,71%
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
condor for the current year, has been calculated with the current month's enrollment times the current Monthly Deductible Factor(s).