HomeMy WebLinkAboutCity of Tamarac Resolution R-2013-121Temp. Reso. #12425
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CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-2013-�� / —
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 A TRANSFER OF
$650,000 FROM THE RISK FUND; 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 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 awarded aone-year contract with CIGNA for stop
loss insurance coverage, which will expire on December 31, 2013; and
WHEREAS, in October, 2013, the City's benefit consultant Willis
Employee Benefits competitively marketed the Stop Loss Insurance coverage for
2014; 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
Temp. Reso. #12425
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WHEREAS, after detailed evaluation of the proposals, and with the
assistance of Willis Employee Benefits, we have determined that CIGNA's
proposal is the most cost effective for the City; and
WHEREAS, the City's Health Insurance Program design will remain
substantially the same with some plan adjustments, including a premium
increase, a small increase in deductibles for two plans, a waiver reimbursement
maximum set at CY 2013 levels, and elimination of the City subsidy for over -age
dependents, as funded in the FY 2014 Budget; and
WHEREAS, the City will transfer $650,000 to the Health Insurance
Fund to fund claims for CY 2014; and
WHEREAS,
available
funds exist in the
appropriate
Governmental
Funds which are in the
approved
FY2014 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 Agreement, 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, 2014; and
WHEREAS, the City Commission has deemed it to be in the best interest
of the health, safety and welfare of the citizens and residents of the City of
Tamarac to execute such Agreement.
Temp. Reso. #12425
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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 Agreement,
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, 2014; and
SECTION 3:
authorized.
SECTION 4:
That a transfer of $650,000 from the Risk Fund is hereby
That all resolutions or parts of resolutions in conflict
herewith are hereby repealed to the extent of such conflict.
SECTION 5:
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 6:
adoption.
This Resolution shall become effective immediately upon
PASSED, ADOPTED AND APPROVED this 3 day of
2013.
ATTEST:
l
PATRICIA TEUFE
CITY CLERK
MC
HEREBY CERTIFY THAT I HAVE
APPROVED THIS RESOLUTION
AS TO FORM
// / j zl) R-
SAN4iJEL S. GO N
CITY ATTORNEY
Temp. Reso. #12425
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21pi-ee-
B ETH TALABISCO
MAYOR
RECORD OF COMMISSION VOTE:
MAYOR TALABISCO tl�
DIST 1: COMM. BUSHNEL
DIST 2: COMM. GOMEZ !�
DIST 3: COMM. GLASSER
DIST 4: V/M DRESSLER
EXHIBIT 1
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City of Tamarac
Current Plan Renewal - ASO
1/1/2014
ASO Fees and Stop Loss Rates
Administrative Service Fees
$
17.88
$
69,732
Network Access Fees
$
21.10
$
82,290
Total PEPM ASO Fee
$
38.98 $
0.37
Em loyees
325
325
Current Annual Administrative & Access Fees
$
152,022 $
1$443
$
153,465
1ksO Fees - Proposed
0A11 fligh,
OAP Low, 0AMI)
'No
Administrative Service Fees
$
Vision
17.88
$
Total
69,732
Change
0.0%
Network Access Fees
$
21.10
$
829290
0.0%
Total PEPM ASO Fee
$
38.98 $
0.37
Employees
325
325
Wroposed Annual Administrative & Access Fees
$
152,022 $
1,443
$
1539465
0.0%
Stop Loss
Current
$
96.15
$
374,985
Proposed
$
109.62
$
4271,518
Lives
325
Pro osed Annual Individual Sto
Loss
$
4279518
$
427,518
14.0%
* Pooling Point $
125,000
* Contract Type
12/3 6
* !tr Accumulation
y
* Commissions (Net or %)
Net
Aggreg"Ite Stop Loss
Current
$
8.28
$
32,292
Proposed
$
9.11
$
35,529
Lives
325
Proposed Annual Aggregate Stop Loss
$
35,529
$
359529
10.0%
* Pooling Point $
1259000
* C'orridor Amotutt
118%
* Contract type
12/36
* Minimum Attachment Percentage
100%
* I& Accumulation
y
* Commissions (Net or Yo)
Net
Current Total Annual Stop
Loss
$
407,277
Proposed Total Annual Stop
Loss
$
4639047 I
13.7%