HomeMy WebLinkAboutCity of Tamarac Resolution R-2003-245Temp. Reso. # 10266 - October 10, 2003
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CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-2003-,�-'�
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, 2004 WITH A RATE
INCREASE OF 4%; 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, 2003; and
WHEREAS, the rates for the group dental insurance program have
increased this renewal period 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 increase approximately
4% effective January 1, 2004; 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,
2004; and
Temp. Reso. # 10266 - October 10, 2003
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WHEREAS, available funds exist in the appropriate funds which
are in the approved FY2004 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, 2004 with a rate increase of
4%, 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herewith are hereby repealed to the extent of such conflict.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.
Temp. Reso. # 10266 - October 10, 2003
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SECTION 6: This Resolution shall become effective immediately
upon adoption.
PASSED, ADOPTED AND APPROVED this 22d day of October, 2003.
/s11111111*15
MARION SWENSON, CIVIC
CITY CLERK
I HEREBY CERTIFY that
I have approved this
RESOLUTION as to form
i,
�l
MITCHE�LL S. KRAF
CITY ATTORNEY
1
JOE SCHREIBER
MAYOR
RECORD OF COMMISSION VOTE:
MAYOR SCHREIBER
DIST 1: COMM. PORTNER
DIST2: COMM. FLANSBAUM-TALABISCO .(--
DIST 3: COMM. SULTANOF
DIST 4: V/M ROBERTS a[
OCT.14.2003 2:09PM AETNA U S HEALTHCARE
r1, ,rTJI lRG�5
XAetna" T 14 PM 3- 4S
October 14, 2002
Maria Swanson
City of Tamarac
7525 NW 88" Avenue
Tamarac, Fl. 33324
RE: Dental Renewal
Dear Maria;
EXHIBIT A
Temp. Reso. #10266
Joy Fenton
Account Manager
$201 Peters Load,
Plantatlon, Florida 33324
Tel 954.302-4282
Fax 954-382.0200 or954-302.8104
We are pleased to present you with your 1/1/04 renewal package, We appreciate your business and look
forward to renewing our relationship.
We have completed our financial analysis of yotlr Dental benefit program, and have projected new rates
and a new plan feature to take effect 1/l/04. The rates are illustrated on the attached "Summary of Monthly
Billing Rates" exhibit.
i have recommended that we change the Indemnity portion of the dental plan to a PPO arrangement, The .
reimbursements'to the providers are more attractive and Will therefore result in lower out of pocket expense
to the member because they have the advantage of the PPO contracted rates. The result of this change
equates to a 4% increase to your cent xateS.
Thank you for your business and it's been our pleasure to provide healthcare benefits to your employees
and their covered dependents, We Iook forward to continue doing business With you,
ly,
y P. Fenton
Account Manager
Summary of Monthly Billing Rates
Dental Plan City Of Tamarac
PH NO 809520
Rate
Comparison
DMO Freedom of Choice
Current
Inforce
Rerate
1/1/2004
Rate Tier
Enrollment
Rates
%
Rates
Employee
138
$ 23.37
4.0%
$ 24.30
EE +1 Dependent
64
$ 47.06
4.0%
$ 48.94
EE+Family
80
$ 65.75
4.0%
$ 68.38
Assumptions
Rates may be adjusted if:
> covered population changes by 15% or more; current enrolled lives are 282;
> legislation or regulation is enacted that affect the benefits payable, eligibility
or contractual provisions;
> there is any other material change in the condition under which the plan operates.
Additional
Comments > Commissions payable to a broker or consultant will not change.
> No commissions are currently payable.
> Where permitted by state law, late entrant rules will continue to be applied at annual
enrollment and throughout the year (no true 'open enrollment").
> The Alternate plan will change to Passive PPO effective January 1, 2004.
"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.
Aetna 10/1/2003