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Home My WebLink AboutCity of Tamarac Resolution R-2006-1761 Temp. Reso. # 11056 September 8, 2006 Page 1 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-2006--..6 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO APPROVE THE RENEWAL OF THE CITY'S DENTAL INSURANCE PROGRAM WITH AETNA LIFE INSURANCE COMPANY EFFECTIVE JANUARY 1, 2007 AT THE PRESENT RATE THE CITY PAYS; PROVIDING FOR THE CONTINUATION OF THE EXISTING COST ALLOCATION OF THE DENTAL INSURANCE PREMIUM BETWEEN THE CITY AND EMPLOYEES; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the dental insurance was awarded to Aetna Life Insurance Company and is scheduled to expire on December 31, 2006; and WHEREAS, the rates for the group dental insurance program will remain the same as indicated in the renewal letter received from Aetna Life Insurance Company, attached hereto as Exhibit A; and WHEREAS, the group dental insurance rates will remain the same effective January 1, 2007; and WHEREAS, the City Manager and Human Resources Director recommend approval of the Freedom of Choice — DMO/PPO group dental insurance program for employee dental insurance benefits effective January 1, 2007; and Temp. Reso. # 11056 September 8, 2006 Page 2 WHEREAS, available funds exist in the appropriate funds which are in the approved FY2007 Budget; and WHEREAS, the City Commission has deemed it to be in the best interest of the citizens and residents of the City of Tamarac to provide group dental insurance benefits for City employees. 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. SECTION 2: That the appropriate City officials are hereby authorized to approve the renewal of the City's dental insurance program with Aetna Life Insurance Company effective January 1, 2007 at the present rate the City pays, as outlined on Exhibit A. SECTION 3: That the appropriate City officials are hereby authorized to continue the existing cost allocation of the dental insurance premium between the City and employees. SECTION 4: That all resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict.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: upon adoption. Temp. Reso. # 11056 September 8, 2006 Page 3 This Resolution shall become effective immediately PASSED, ADOPTED AND APPROVED this Allday of Sq*emb,-,( , 2006. ATTEST: MARION SWEf4SON, CMC CITY CLERK I HEREBY CERTIFY that I have approved this RESOLUTION as to form. 1 -.�/ BETH FLANSBAUM-TALABISCO MAYOR RECORD OF COMMISSION VOTE: MAYOR FLANSBAUM-TALABISCO DIST 1: VIM PORTNER DIST 2: COMM ATKINS-GRAD DIST 3: COMM. SULTANOF DIST 4: COMM. DRESSLER EXHIBIT A Dental RenewaLTroposed Rates City of Tamarac Effective January 1, 2007 Policyholder Number - #809520 • This exhibit outlines your Renewal/Proposed Rates effective January 1, 2007. • Please refer to the Financial Conditions and Plan Design Exhibits for an outline of the level of benefits quoted, as well as the terms and conditions of this proposal. Freedom of Choice HMO Rates Current/Assumed Proposed/ Coverage Categories Employees Current Rates Renewal Rates % Chan e Emp OnIY............................... 4 :...............$24.88 $24.88 �o%................... Emp +One pependent ; ...........................................:................................................................................. 5p ........................................ 50.11 .......1..................E...................��: 50.1 D /o Em + Family93 $70.02 $70.02 0.0% [Monthly Total 257 $11,853.68 $11863.68 0.0% Freedom of Choice PPO Rates Current/Assumed Proposed/ Coverage Categories Em to ees Current Rates Renewal Rates % Change Emp Only ................................ ' ..............................................¢.....................:................... 30 S $24 88 i $24.88 /° Em+One De endent 18 P....................P...................... .....I.............. <........................ .................................................:...................Q:�n.................... i' $5011 ,......................:........,.I... $50.11 ' Em + Family 8 ...... ,............................. $70.02 $ .........................................:ors........ 70.02 ........ ... O.A% Monthly Total 56 $2,208.54 $2 208.54 0.0% Employees Current Proposed Premium Premium % Change Monthly Totals 313 $14,062.22 $14,062.22 0.0% Financial Conditions Rates may be adjusted if; a covered population changes by 15% or more; current enrolled lives are 313; • legislation or regulation is enacted that affect the benefits payable, eligibility or contractual provisions; n there is any other material change In the condition under which the plan operates. • Commissions payable to a broker or consultant change. Terms: • No commissions are currently payable. a For Voluntary plans, where permitted by state law, late entrant rules will be applied at annual enrollment (i.e., no true "open enrollment') as well as throughout the year, "Aetna" is the brand name used for products and services provided by one or more of the Aetna group of subsidiary companies. PPO/PDN is underwritten by Aetna Life Insurance Company. DMO is underwritten by Aetna Life Insurance Company, except as follows: Arizona, Georgia: Aetna Health Inc. California: Aetna Dental of California Inc. Maryland, Missouri, North Carolina, Texas: Aetna Dental Inc. New Jersey: Aetna Dental Inc. and Aetna Life Insurance Company. 07/05/2006 www.aetna.com Dental Renewal Rates Dental Renewal Assumptions - Financial The City of Tamarac Policyholder Number - #809520 Renewal Rate Period: 01/01/2007 through 12/31/2007 The financial quotation presented is based on the financial assumptions outlined in this document. It is important to note that al ,f�T_Sh se.a,ssumpJjQ.na..n.ay-resu]L-io-additional-ch-arges_..artdlor._..adjustments_.to_the.-renewaL-rates_.and/.or-site- ..__._.. terminations. Employer Contributions - Our rates assume compliance with our standard guidelines on employer contribution strategy. We standardly require that the employer contribute 25% of the total cost of the plan, or 50% of the employee only coverage. Employer contributions may not favor other dental plans over that of the Aetna plans. Participation - 75% of total eligibles must participate in the employer's plan. In the event of waivers due to spousal coverage, participation should be 50% or higher. Failure to meet one or both of these percentages will have an impact on the next renewal and could lead to possible withdrawal of dental products. 100% of total eligibles must participate for non-contributory plans, 30% for Voluntary plans. Our offering assumes that Aetna is the sole dental carrier. In the event alternative carriers are to be offered, we reserve the right to reassess our rates immediately. Demographic Change - The dental rates will continue to apply assuming that a change in The City of Tamarac's demographic and/or geographic mix from that assumed at the time the rates were established does not change the enrollment by more than 15% for any individual site or product. We reserve the right to reallocate the premium ratios and/or the premium rates due to changes in composition of the census. Eligible population includes active employees only. Retirees, regardless of age, are not eligible for coverage. Our rating also assumes that COBRA enrollment continues to represent less than 10% of the covered population. Contract Period- Our policies provide for automatic renewal upon the completion of each contract period unless either party invokes the termination provision requiring 31 days advance written notice of termination to the other party. This provision may be invoked at any time during the continuance of the contract (i.e., is not just limited to termination occurring on the renewal date). Commissions - Commissions have been excluded from our quoted rates. Producer Compensation - Aetna has various programs for compensating agents, brokers and consultants. If you would like information regarding compensation programs for which your producer is eligible, payments (if any) which Aetna has made to your producer, or other material relationships your producer may have with Aetna, you may contact your producer or your Aetna account representative. Information regarding Aetna's programs for compensating producers is also available at www.aetna.com. Enrollment Assumptions - We have assumed that the plan of benefits will be extended to all groups included in our current eligibility files. Our renewal assumes that coverage will not be extended to any additional groups of employees without additional census and rate determination. A summary of assumed enrollment by plan option has been provided in the rate exhibit. Rate Guarantee - Our rates apply for the contract period and are valid as of the effective date, 01/01/2007. The rates apply only to the benefit levels and conditions specified and any variations in benefit level or assumed conditions may require a rate change. Our responses are statements of fact as they exist today. We have made every effort to include information in a manner that reflects existing and expected business practices for the next policy period. However, nearly all of the matters addressed in this renewal are dynamic and subject to change before or after the effective date. This renewal is not intended to serve as a substitute for your Group Agreement and the statements in this renewal are not intended as legal representation or warranties. Our obligations to one another will be limited to the terms of the Group Agreement. 07/05/2006 www.aetna.com Dental Financial Assumptions Dental Renewal Assumptions - Administrative The City of Tamarac Policyholder Number - #809520 Renewal Rate Period: 01/01/2007 through 12/31/2007 The financial quotation presented is based on the administrative assumptions outlined in this document. It is important to note that deviations from these assumptions may result in additional charges and/or adjustments to the renewal rates and/or site terminations.T Compliance - The City of Tamarac will be required to supply Aetna with confirmation of compliance with these Renewal Assumptions. For example, enrollment materials to verify employer contribution, enrollment to verify minimum participation and plan designs. Plan Design - The renewal is based on the current plan design. Aetna's standard provisions, contract wording and claim settlement practices will apply for items not specifically outlined. Changes in Plan - Our guidelines allow for a change in plan on the renewal date only, unless initiated by legislative actions. If a material change in the plan is initiated by The City of Tamarac and approved by Aetna, an adjustment to the rates may apply. Legislative Action - If a material change in the plan is required by legislative action, an adjustment to the rates may apply. Billing and Payment of Premium - Amount due is payable on the 1st day of the monthly coverage period covered by the invoice. If the amount due is not paid in full within 30 days, Aetna reserves the right to terminate the contract and/or assess late premium payment charges. Open Enrollment - The rates assume that there will be a predetermined annual enrollment period when all eligible employees have a choice of enrolling in any of the available plans. Health Insurance Portability and Accountability Act (HIPAA) - Our rates assume that Aetna will be providing HIPAA certification of coverage for terminated employees or employees who move from product to product. Plan eligibility - Our rates assume that permanent full-time employees work a minimum of 25 hours per week on a regularly scheduled basis and that eligible dependents include an employee's spouse and unmarried children up to the limiting age of the plan. Our rates assume that temporary employees are not eligible for coverage. Retirees - The quoted plan is only for active employees. It is assumed that all retirees over and under age 65 are not eligible for coverage. Our responses are statements of fact as they exist today. We have made every effort to include information in a manner that reflects existing and expected business practices for the next policy period. However, nearly all of the matters addressed in this renewal are dynamic and subject to change before or after the effective date. This renewal is not intended to serve as a substitute for your Group Agreement and the statements in the renewal are not intended as legal representation or warranties. Our obligation to one another will be limited to the terms of the Group Agreement. 07/05/2006 www.aetna.com Dental Admin Assumptions