The URL can be used to link to this page

Home My WebLink AboutCity of Tamarac Resolution R-2014-121Temp. Reso. 12575 October 29, 2014 Page 1 of 4 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-2014- � �- 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; 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's awarded a multiple year contract with CIGNA to provide Administrative Services for Claims and Flexible Spending Accounts, and an Employee Assistance Plan, and WHEREAS, the City renewed a one-year contract with, CIGNA for stop loss insurance coverage, which will expire on December 31, 2014; and WHEREAS, after a detailed evaluation of the proposed stop loss premium, and with the assistance of Willis Employee Benefits, City staff has determined that the City continue CIGNA's stop loss coverage, and WHEREAS, the City's Health Insurance Program design will remain substantially the same with some plan adjustments, including a', small increase in the annual out-of-pocket maximum, the addition of a step therapy program for new prescriptions, and an increase in the mail-order prescription copays, and Temp. Reso. 12575 October 29, 2014 Page 2 of 4. WHEREAS, the City desires to establish and clarify the rules under which retirees may continue in the City's Health Insurance Program, including that they must continue to pay the full health insurance premium, and establishing 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 of service, subject to open enrollment or qualifying life change; and WHEREAS, available funds exist in the appropriate Governmental Funds which are in the approved FY2015 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 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, 2015; and that the other Health Insurance Program changes described in this Resolution are implemented effective January 1, 2015; 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 and approve the changes to the Health Insurance Program. Temp. Reso. 12575 ,October 29, 2014 Page 3 of 4 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. I SECTION 2. That the appropriate City officials arehereby 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 SECTION 3: That the City's Health Insurance Program design will remain substantially the same with some plan adjustments, including a, small increase in the annual out-of-pocket maximum, the addition of a step therapy program for new prescriptions, and an increase in the mail-order prescriptio copays, and 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 herewith are hereby repealed to the extent of such conflict. in conflict SECTION 6: Temp. Reso. 12575 October 29, 2014 Page 4of4 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: adoption. This Resolution shall become effective immediately upon PASSED, ADOPTED AND APPROVED this IA'-dayof 3wQ41AtA 2014. � HARRY DRESSLER MAYOR ATTEST: C!A TLU , CMC CI -CLERK r RECORD F O COMMISSION VOTE: MAYOR DRESSLER �4,-- DIST 1: COMM. BUSH NELL C_ DIST 2: VICE MAYOR GOMEZ�_ DIST 3: COMM. GLASSERILAk---6� DIST 4: COMM. PLACKO I HEREBY CERTIFY THAT I HAVE APPROVED THIS RESOLUTION AS TO FORM SANE EL S. GOREIV CITY ATTORNEY Tina Velez Senior Client Manager October 13, 2014 City of Tamarac 7525 NW 88th Avenue, Suite 203 Tamarac, FL 33321-2401 E)RBIT 1 na, 1571 Sawgrass Corporate Parkway Suite 300 Sunrise, FL 33323 Telephone 954-514-6843 Tina.Velez@cigna.com Cigna is pleased to offer a renewal package to City of Tamarac. This contract will be in effect from 01 /01 /15 through 12/31 /15. Ciana is offering the followina renewal terms 01 /01 /15 throuah 12/31 /15: Administrative Service Fees $ 17.88 Network Access Fees $ 21.10 Total PEPM ASO Fee $ 38.98 $ 0.37 Enn0ovees 337 337 Cigna is pleased to offer Individual Stop Loss Insurance and Aggregate Stop -Loss insurance at the following premium rates effective 01 /01 /15 throuah 12/31 /15: Proposed Lives nnuai ina viaua * Pooling Point $125,000 * Rx Accumulation Y * Commissions (Net or %) Net $115.10 337 "Cigna is a registered service mark, and ," the "Tree of Life" logo is a service mark, of Cigna Intellectual Property, Inc., licensed for use by Cigna Corporation and its operating subsidiaries. All products and services are provided exclusively by such operating subsidiaries and not by Cigna Corporation. Such operating subsidiaries include Connecticut Go! neral Life Insurance Company (CGLIC), Cigna Health and Life Insurance Company (CHLIC), and HMO or service company subsidiaries of Cigna Health Corporation and Cigna Dental Health, Inc Proposed Lives Pr000sed Annual * Pooling Point * Corridor Amount * Contract Type * Minimum Attachment Percentage * Rx Accumulation * Commissions (Net or Stoa Loss $125,000 118% Paid 100% Y Net $ 9.11 337 EAP Renewal: 01 /01 /15 through 12/31 /15 Employee Assistance and Work/Life Support Programs $2.10 per Employee per Month (1 to 5 Sessions) Please note that this offer also includes the continuation of a $20,000 wellness fund. We look forward to continuing our relationship with City of Tamarac and appreciate the opportunity to continue to serve your population. Cigna will provide a full contract once completed. Respectfully, Tna Ve&z Tina Velez Senior Client Manager z ~* .:Cigna. City of Tamarac Current Plan Renewal - ASO 11112015 ASO Fees and Stop Loss Rates Administrative Service Fees $ 17.88 $ 72,307 Network Access Fees $ 21.10 $ 85,328 Total PEPM ASO Fee $ 38.98 $ 0.37 Employees 337 337 Current Annual Administrative & Access Fees $ 157,635 $ 194961, $ 159,131 ASO Fees - Proposed Medical Vision Total % Change From • 12/31/2015 Administrative Service Fees $ 17.88 $ 72,307 0.0% Network Access Fees $ 21.10 $ 85,328 0.0% Total PEPM ASO Fee $ 38.98 $ 0.37 Employees 337 337 Proposed Annual Administrative & Access Fees $ 1579635 $ 19496 $ 1590131 0.0% Stop Loss Individual • . • Medical • • , 1 Change Current $ 109.62 $ 443,303 Proposed $ 115.10 $ 465,464 Lives 337 Proposed Annual Individual Stop Loss $ 465,464 $ 465,464 5.0,OA * Pooling Point $ 125,000 * Contract Type 0 * Rx Accumulation Y * Commissions (Net or %) Net A ggregate Stop Loss Medical Total % Change Current $ 9.11 $ 36,841 Proposed $ 9.11 $ 36,841 Lives 337 Proposed Annual Aggregate Stop Loss $ 36,841 $ 36,841 0.0% * Pooling Point $ 125,000 * Connidor Amount 118% * Contract Type Paid * Minimum Attachment Percentage 100% * Rx Accumulation Y * Commissions (Net or %) Net Current Total Annual Stop Loss $ 480,144 Proposed Total Annual Stop Loss $ 5029305 4.6%